As an investment, gold is seen as one of the best hedges against inflation. It can be owned physically i.e. in the form of jewellery, gold bars and coins, or in paper, like gold exchange traded funds and sovereign gold bonds. The price of gold in India varies across cities on account of local market factors such as its demand and supply, state government taxes and transportation charges (of physical gold). This article sheds light on how lucrative gold investments are in Salem and its rates over the recent months.
If an individual wants to buy physical gold, all he or she has to do is go to the nearest jewellery shop and purchase gold jewellery and/or gold coins. It is advisable to opt for coins since jewellery has making costs, which the individual will not be able to recover when selling. Other than physical gold, one has the option of buying gold ETFs. They are funds that mainly invest in gold, and can be purchased and sold on the exchange. To buy gold ETFs, one simply needs to ask the broker to buy after opening a broking and trading account. Sovereign gold bonds are also listed, and individuals can buy them in the same manner as listed shares are bought.
A few factors to keep in mind before buying physical gold are as follows:
Trend of Gold Rate in Salem for September 2019
| Gold Rates | 22 Carat | 24 Carat |
|---|---|---|
| 1st August rate | Rs. 34,020 | Rs. 35,220 |
| 31st August rate | Rs. 37,960 | Rs. 39,260 |
| Highest Price on August | Rs. 38,440 on August 26 | Rs. 39,780 on August 26 |
| Lowest Price on August | Rs. 34,020 on August 1 | Rs. 35,220 on August 1 |
| Overall Performance | Rising | Rising |
| Percentage Change | +11.58% | +11.47% |
Source: GoldPriceIndia
Trend of Gold Rate in Salem for August 2019
| Gold Rates | 22 Carat | 24 Carat |
|---|---|---|
| 1st July rate | Rs. 33,020 | Rs. 34,220 |
| 31st July rate | Rs. 34,420 | Rs. 35,620 |
| Highest rate | Rs. 34,700 on July 19 | Rs. 35,900 on July 19 |
| Lowest rate | Rs. 33,020 on July 1 | Rs. 34,220 on July 1 |
| Overall performance | Rising | Rising |
| % change | +4.24% | +4.09% |
Source: GoldPriceIndia
Trend of Gold Rate in Salem for July 2019
| Gold Rates | 22 Carat | 24 Carat |
|---|---|---|
| 1st May rate | Rs. 31,710 | Rs. 33,100 |
| 30th June rate | Rs. 33,550 | Rs. 34,720 |
| Highest rate | Rs. 33,610 on June 24 | Rs. 35,010 on June 24 |
| Lowest rate | Rs. 31,710 on June 1 | Rs. 33,100 on June 1 |
| Overall performance | Rising | Rising |
| % change | +5.80% | +4.89% |
Source: GoldPriceIndia
Trend of Gold Rate in Salem for June 2019
| Gold Rates | 22 Carat | 24 Carat |
|---|---|---|
| 1st May rate | Rs. 30,950 | Rs. 32,660 |
| 31st May rate | Rs. 31,560 | Rs. 32,900 |
| Highest rate | Rs. 31,910 on May 8 | Rs. 33,400 on May 8 |
| Lowest rate | Rs.30,870 on May 4 | Rs.32,000 on May 4 |
| Overall performance | Rising | Falling |
| % change | +1.97% | +0.73% |
Source: GoldPriceIndia
Prior to the implementation of GST, the tax levied on gold was 1% service tax and 1% VAT. Now, the GST applicable on gold is 3%. Additionally, gold has a 5% making charge. The GST council had earlier planned to levy 18% as gold making charges. However, when the new tax regime came into effect, the council decided to keep it at 5%.
Gold jewelleries hallmarked by the Bureau of Indian Standards shall bear the BIS logo. This serves as evidence that the purity of the gold has been verified in one of the bureau’s licensed laboratories. It is however important to note that BIS hallmarking is not mandatory - not all jewellers offer hallmarked BIS jewellery. Some offer their in-house hallmarking of jewellery which is not verified by the national standards body of India. Prior to buying gold jewellery, it is essential to check with the jewellers whether or not they offer BIS hallmarked ornaments.
The different ways by which a user can buy gold include:
Investing in gold is worthwhile because it acts as a hedge against inflation. Overtime, the returns would be in line with the rate of inflation. The second reason why financial experts recommend this route of investing is due to the fact that gold is negatively correlated to equity investments. From the year 2007, it was observed that the equity markets did not perform too well, whereas gold did. Thus, including gold in one’s portfolio mix can help reduce the overall volatility of the individual’s portfolio.
What is per gram Gold Rate in Salem?
According to GoldPriceIndia website, the gold price for 24 karat gold is Rs. 3,804 per 1 gram.
What is 10 gram Gold Rate in Salem?
According to GoldPriceIndia website, the gold price for 24 karat gold is Rs. 38,044 per 10 grams.
What is 100 grams Gold Rate in Salem?
According to GoldPriceIndia website, the gold price for 24 karat gold is Rs. 3,80,440 per 100 grams.
