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Gold Rate in Pune

Pune is a cosmopolitan city in the Indian state of Maharashtra. From being an educational centre, the city has now transformed itself into one of the popular residential hubs in the state. With an increasing population, the demand for gold too has witnessed a major high, which has led to the gold rates changing on a daily basis. The rising gold rates in Pune has not deterred people from making a gold purchase in the city. Gold being a safe asset is considered a highly valuable and reliable form of investment. Pune houses a number of jewellery shops and showrooms that deal in the selling and buying of gold. Gold trading is also one of the preferred investments options in the city today.

Gold rates in Pune change on a daily basis and one can check the gold rate today online or at a jewellery showroom or shop near them. However, no matter what the rate of gold is, people in Pune simply can’t avoid this metal and cannot resist themselves from making a gold purchase.

Factors Affecting Gold Rate in Pune

Despite the surging gold prices, people in Pune consider gold to be a safe investment option. However, as a gold buyer, it’s important for people to understand how and why the gold rates change on a daily basis. So, here is a brief explanation of the factors that affect the gold rate in Pune.

  • The rate of inflation: When the market is reeling under inflation, gold seems to be one of the best and safest investment options. Hence, when inflation rises, the demand for gold increases, which leads to an increase in the price as well.
  • Bank rate of interest: Today, people think, the more the better. Hence, due to this, people invest more in gold as banks offer low-interest rates on fixed deposits.
  • Heavy import duty: Since Pune does not have its own gold mine, gold is imported in the city. Any increase or decrease in the import duty has a direct impact on the gold rate prevailing in the city.
  • US dollar fluctuation: Gold and dollar share an inverse relationship. When the US dollar weakens, the gold rate in Pune rises. Similarly, when US dollar gains strength, the gold rate in India falls. This is because a weakening dollar appreciates the value of other currencies that leads to an increase in the demand for other commodities including gold. Similarly, when the US dollar loses value, people start looking for alternative investment options which include gold being the safest investment option.
  • Dollar-rupee equation: Gold is imported in India from the US. Hence, if the US dollar weakens against Indian rupees, gold rates increase. Similarly, a depreciating rupee dents the demand for gold in the country.
  • Supply and demand ratio: Any alteration in the supply and demand ratio directly has an impact on the gold rate in Pune.

Who Determines Gold Rate in Pune?

The Gold Rate in Pune is determined by the Indian Bullion and Jewellers Association that consist of over 200 members who have a say in the gold rates in Pune. The gold rate is arrived on the basis of the ‘buy’ and ‘sell’ quotes quoted by the top gold dealers in Pune. The gold in Pune is imported to the banks who then supply to the dealers. While determining the gold rate, the above factors are kept in mind and also the GST and transportation charges are taken into account.

Various Gold Investment Options in Pune

There are an array of investment avenues under which an individual can make an investment in gold in Pune. Read below about various gold investment options that individuals can opt for.

  • Gold jewellery: Buying gold jewellery is a well-known practice in Pune. However, investing in gold jewellery is not a wise option as the return cost is lower than the buying cost. This is due to the labour charges involved in the making of the jewellery.
  • Gold coins and bars: Gold coins and bars can be purchased in various karats depending on your choice and budget. They can be purchased from a bank or jewellery shop. However, it is important to note that you cannot sell coins and bars back to the bank.
  • Gold mutual fund: This is a type of fund investment in gold that is made on the behalf of the investor. This investment involves an investment in various gold-related funds and does not require the investor to open a Demat account.
  • Gold ETF: This is a type of individual stock that invests in gold as a commodity exchange-traded fund that has its units listed on the stock exchange. To purchase a Gold ETF, it is mandatory for an investor to open a Demat account.

Things to Know Before Investing in Gold in Pune

Gold rate today in Pune is influenced by the above factors. However, to help you make a safe and easy purchase, here are a few things you should know before you invest your hard earned money in it.

  • Gold purity: Gold is available in various purity levels such as 24K (99.9%), 22K (91.7%), 20K (83.3%), 18K (75%), 14K (58.3%) and 10K (41.7%). Knowing the purity level of the gold you purchase, lets you know about the exact percentage of pure gold content in it. 24K gold will cost you more than 22K and 20K gold.
  • Man-made and machine made: While buying gold in Pune, it is important for you to know whether the jewellery item you are purchasing is manmade or machine made. Usually, man-made jewellery is more costly than machine-made jewellery item.
  • Making charges: Making charges is a charge that is charged by every jeweller on purchasing gold ornaments. Making charges also vary from jeweller to jeweller and are aligned as per the existing gold rates. So, while purchasing gold jewellery in Pune, it is imperative for you to check making charges charged by various jewellers and then make an informed purchase.
  • Buyback: In Pune, a number of jewellers offer buyback options wherein individuals can exchange old jewellery items to buy a new one. Hence, while purchasing jewellery, it’s wise to opt for a jeweller that offers such a service.
  • Cost per gram: While buying gold in Pune, first check about the cost per gram at which you can get the gold. This gives you a fair idea of the price at which you can buy the gold.
  • Weight: It is important to note that the price of gold is directly proportional to its weight. If the gold that you are buying includes other gems and stones, then the price of your jewellery piece will also increase due to it. So it’s always advisable to buy jewellery items minus the gemstones.
  • Certification: Always check for the BIS hallmark while buying jewellery in Pune. Though this would cost you more, it would ensure that the gold item you are purchasing is pure and would also offer good resale value.

FAQs on Gold Rate in Pune

What is the impact of GST on the gold rate in Pune?

GST on the gold rate in Pune is levied at a rate of 3%.

What is the difference between hallmarked and KDM gold in Pune?

Hallmark gold certifies that the gold is of pure quality and is certified by the Bureau of Indian standards. KDM gold is a cadmium-soldered gold that has now been discontinued as it has been proven to be hazardous to health.

What are the advantages of buying gold in Pune?

Investing in gold in Pune can protect investors and consumers from times of inflation. Purchasing gold as a fashion accessory can also make for a great investment and people can now purchase it in an electronic form too.

Is making charge on gold included in GST for buying gold in Pune?

No, the making charge on gold jewellery is not included in GST.