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Gold Rate in Surat

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 Surat and its rates over the recent months.

Factors Affecting Gold Rate in Surat

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

  • Inflation: During times of rise in inflation, the value of currency falls. This prompts more people to hold money in the form of gold. When inflation remains high over a longer duration, gold serves as a tool to hedge against inflationary conditions. This results in gold prices moving up during the inflationary period.
  • Rupee-dollar equation: Although the rupee-dollar equation does not affect global gold prices, it plays a role in Indian gold rates. Given that gold is largely imported, if the rupee weakens against the dollar, gold prices will likely appreciate in rupee terms. A depreciating rupee may hurt the demand of gold in the nation. It must, however, be noted that a change in rupee-dollar rates does not affect gold rates denominated in dollars.
  • Gold and interest rates: Under normal circumstances, gold and interest rates have a negative relationship, some industry experts have suggested. Rising yield denotes an expectation of strong economy. This situation gives rise to inflation, and gold is used as a hedge against inflation. When rates increase, investors move to fixed-income investments that yield a fixed return, unlike gold, which does not fetch any such returns. Demand therefore takes a back seat, with prices staying flat.

How to Invest in Gold in Surat?

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.

Things to Remember Before Purchasing Gold in Surat

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

  • Level of purity - Gold is available in different purity levels, and this can be measured on the basis of Karat and fineness. The level of purity has a bearing on the price of gold.

  • Hallmarking - When one is buying physical gold, it is important to check for hallmarking. Hallmarking is mandatory on gold ornaments and coins. The Bureau of Indian Standards has been set up by the government to ensure that individuals do not get cheated when buying gold.

  • Making charges - Another important element that impacts the price of gold is its making charge. Some jewellers determine making charge at a fixed rate per gram of gold, while others may charge it on the basis of a certain percentage of the total jewellery weight.

6 Months Gold Rate in Surat

Trend of Gold Rate in Surat for August 2019

Gold Rates22 Carat24 Carat
1st August 2019Rs. 34,100Rs.34,790
31st August 2019Rs. 37,990Rs. 38,760
Highest Price on JulyRs. 38,220 on August 29Rs. 39,020 on August 29
Lowest Price on JulyRs. 34,100 on August 1Rs. 34,790 on August 1
Overall PerformanceRisingRising
Percentage Change+11.41%+11.41%

Source: Good Returns

Trend of Gold Rate in Surat for July 2019

Gold Rates22 Carat24 Carat
1st July rateRs. 33,130Rs. 33,790
30th July rateRs. 34,100Rs. 34,790
Highest rateRs. 34,450 on July 13 Rs. 35,170 on July 13
Lowest rateRs. 32,950 on July 2 Rs. 33,610 on July 2
Overall performanceRisingRising
% change+2.93%+2.96%

Trend of Gold Rate in Surat for June 2019

Gold Rates22 Carat24 Carat
1st June rateRs. 31,560Rs. 32,480
30st June rateRs. 33,320Rs. 33,980
Highest rateRs. 33,520 on June 25 Rs. 34,190 on June 25
Lowest rateRs. 31,560 on June 1 Rs. 32,480 on June 1
Overall performanceRisingRising
% change+5.58%+4.62%

Trend of Gold Rate in Surat for May 2019

Gold Rates22 Carat24 Carat
1st May rateRs. 31,160Rs. 32,290
31st May rateRs. 31,460Rs. 32,460
Highest rateRs. 31,800 on May 14Rs. 32,800 on May 14
Lowest rateRs. 30,950 on May 4 Rs. 31,950 on May 4
Overall performanceRisingRising
% change+0.96%+0.53%

Trend of Gold Rate in Surat for April 2019

Gold Rates22 Carat24 Carat
1st April rateRs. 31,150 Rs. 32,190
30th April rateRs. 31,100Rs. 32,490
Highest rateRs. 31,410 on April 9Rs. 32,540 on April 9
Lowest rateRs. 30,820 on April 4 Rs. 32,010 on April 4
Overall performanceRisingRising
% change+0.67%+0.93%

Trend of Gold Rate in Surat for March 2019

31st March rate22 Carat24 Carat
1st March rateRs. 32,400Rs. 33,060
28th February rateRs. 30,970Rs. 32,350
Highest rateRs. 32,400 on March 2Rs. 33,200 on March 2
Lowest rateRs. 30,970 on March 30Rs. 32,350 on March 30
Overall performanceRisingFalling
% change-4.41%-2.15%

Importance of Checking Gold Rate in Surat

Checking the price of gold is vital because even a minute variation in gold rate can result in a major loss. The prices of gold today are very high as compared to that of a decade ago. Individuals are advised to compare the current gold rate of one jeweller with that of the others in the city. The bigger and well-established jewellers are likely to charge higher in making charges for gold purchase. If one finds that the making charges of gold is significantly high in one jewellery store, it is recommended to evaluate the rate charged by goldsmiths or jewellers. In doing so, the individual might be able to find one whose rate fits his or her pocket.

What is BIS Hallmarked Gold?

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.

How to Buy Gold after Checking Gold Price in Surat?

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

  • Purchasing gold ornaments from a jewellery store
  • Investing in gold coins and bars offered by jewellers, banks, non-banking finance companies and e-commerce websites
  • Buying Gold ETFs from the stock exchange after opening demat and trading accounts
  • Availing Sovereign Gold Bonds issued by the government
  • Investing in companies involved in the mining, extracting and marketing of gold

Conclusion

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.

FAQ's On Gold Rate in Surat

What is per gram Gold Rate in Surat?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,840 per 1 gram.

What is 10 gram Gold Rate in Surat?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 38,400 per 10 grams

What is 100 grams Gold Rate in Surat?

According to the Good Returns website, the gold price for 24 karat gold is Rs. 3,84,000 per 100 grams.