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Gold Rate in Mysore

Time and again, gold - as an investment - has proved to be one of the best hedges against inflation. It is an excellent portfolio diversifier, given it has a very low correlation to other assets. Gold can be owned physically as jewellery, gold bars and coins, or in paper form, like gold exchange traded funds and sovereign gold bonds. The cost of this precious metal varies across cities in India, as a result of local market factors such as supply and demand, state government taxes and transportation charges (of physical gold). This article focuses on how lucrative gold investments are in the city of Mysore and its rates over the recent months.

Factors Affecting Gold Rate in Mysore

A number of factors have an impact on the gold rate in Mysore. Here is a look at a few:

  • Inflation: Gold is a very safe investment, and this is especially true in times of inflation. It makes for an excellent investment choice during inflationary periods, given that the precious metal is largely stable. Gold is considered as one of the world’s most respected mediums of exchange. The demand for gold increases during inflation, which in turn affects its price.

  • Rupee-dollar equation: The rupee-dollar equation does not impact global gold rates; however, it plays a role in Indian gold rates. Considering that fact that gold is majorly imported, if the rupee weakens against the dollar, the prices will likely appreciate in rupee terms. A depreciating rupee may hurt the demand of gold in the country. A change in rupee-dollar rates does not have a bearing on gold rates denominated in dollars.

  • Fluctuating rates of interest: The interest rates on financial instruments also have a big role in determining the rate of gold. Increased rates imply that people will sell their gold to put their money to better use. On the other hand, a lower interest rate translates to more cash in the hands of the people and more capacity to buy gold.

How to Invest in Gold in Mysore?

If an individual intends to buy physical gold, he or she would need to go to a jewellery shop and purchase gold jewellery and/or gold coins. Gold coins are generally a preferred option since jewellery involves making costs, which the individual will not be able to recover while selling. Then, there is the option of buying gold ETFs. These are funds that invest in gold, and can be bought and sold on the exchange. For buying gold ETFs, one needs to ask the broker to buy after opening a broking and trading account. Sovereign gold bonds are also listed, and people can buy them in the same way as listed shares are bought.

Things to Remember Before Purchasing Gold in Mysore

A few factors to keep in mind before buying physical gold are as follows:

  • Level of purity: The purity of gold is indicated in two ways - Karat and fineness. The level of purity has a bearing on the price of gold. One should only purchase gold jewellery after checking (and being assured of) its purity.
  • Hallmarking: When one is buying physical gold, it is important to check for hallmarking. Hallmarking is an indication of purity of the precious metal, and is mandatory on gold ornaments and coins. The Bureau of Indian Standards has been established to ensure that individuals do not get cheated when buying gold.
  • Making charges: This is associated with every item of gold jewellery. Some jewellers determine making charge at a fixed rate per gram of gold, while others levy it on the basis of a percentage of the total jewellery weight.

Importance of Checking Gold Rate in Mysore

It is important to check the rate of gold as even a small variation in its rate can result in a major loss. The rates of gold today are quite high when compared with that of a few years ago. Therefore, people are advised to compare the gold rate of one jeweller with that of the others in the city. The bigger and prominent jewellers tend to charge higher making charges for gold. If one finds the making charges to be significantly high in one store, it is recommended to evaluate the rates charged by other goldsmiths or jewellers. By doing so, the individual might be able to find one whose rate fits his or her budget.

How GST Impacts Gold Rate in Mysore

Before GST was implemented, the tax imposed on gold was 1% service tax and 1% VAT. Today, the GST levied on gold is 3%. There is also a 5% making charge. It was earlier decided by the GST council that the gold making charges would be 18%. However, when GST came into effect, the council kept it at 5%.

How to Buy Gold after Checking Gold Price in Mysore?

The different ways by which a user can buy gold include:

  • Buying gold ornaments from a jewellery store
  • Investing in gold bars and coins offered by jewellers, banks, NBFCs and e-commerce websites
  • Buying Gold ETFs from the stock exchange after opening demat and trading accounts
  • Availing sovereign gold bonds that have been issued by the government
  • Investing in companies and businesses involved in the mining, extracting and marketing of gold

What is BIS Hallmarked Gold?

Gold jewelleries that have been hallmarked by the Bureau of Indian Standards shall bear the BIS logo. This is evidence that the purity of Gold jewellery hallmarked by the Bureau of Indian Standards, which is the National Standard Body of India, shall have the BIS logo. The hallmark is evidence that the gold’s purity has been verified at one of the bureau’s licensed laboratories. It is important to note that BIS hallmarking is not mandatory. Some jewellers offer their in-house hallmarking of ornaments which is not verified by the national standards body. Prior to buying gold jewellery, individuals are advised to check with the jewellers whether they offer BIS hallmarked ornaments.

Conclusion

Gold is a worthwhile investment since it acts as a hedge against inflation. Overtime, it would yield returns that are in line with the rate of inflation. Financial experts recommend this investment route is because gold is negatively correlated to equity investments. From 2007, it was seen that the equity markets did not perform too well, whereas gold did. Thus, making gold part of one’s portfolio mix can help reduce the overall volatility of the portfolio.

FAQs on Gold Rate in Mysore

What is per gram Gold Rate in Mysore?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,834 per 1 gram.

What is 10 gram Gold Rate in Mysore?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 38,340 per 10 grams.

What is 100 grams Gold Rate in Mysore?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,83,400 per 100 grams.