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Today Gold Rate in Tirunelveli

The demand for gold in India has been witnessing a steady increase in recent times. The yellow metal - as an investment - is seen as one of the best hedges against inflation. Gold can be owned physically i.e. as jewellery, gold bars and coins, or in paper, like gold ETFs and sovereign gold bonds. The cost of gold in the country varies across cities on account of local market factors such as its demand and supply, state taxes and transportation charges (of physical gold). This article sheds light on how lucrative gold investments are in the city of Tirunelveli and its rates over the recent months.

Factors Affecting Gold Rate in Tirunelveli

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

  • Inflation: The value of currency falls when inflation rises. This leads more people holding money in the form of gold. When inflation remains high over a longer timeframe, gold helps to hedge against inflationary conditions. This eventually results in gold rates moving up during inflationary period.
  • Rupee-dollar equation: While global gold prices are not affected by the rupee-dollar equation, it does play a role in Indian gold rates. Given that gold is mostly imported, if the rupee weakens against the dollar, the prices will likely appreciate in rupee terms. A depreciating rupee may negatively affect the demand of gold in the nation. It is essential to note that a change in rupee-dollar rates does not affect gold rates denominated in dollars.
  • Monsoon: India consumes 800-850 tonnes of gold on an annual basis, and rural India accounts for 60% of the country's gold consumption. Monsoon plays a big role in gold consumption - if the crop is good, then farmers purchase gold from their earnings to create assets. On the other hand, if there is deficient monsoon, farmers resort to selling gold for generating funds.

How to Invest in Gold in Tirunelveli?

If an individual would like to purchase physical gold, all he or she has to do is go to a jewellery shop and buy gold jewellery and/or gold coins. Gold coins are mostly a preferred option since jewellery involves making costs, which the individual will not be able to recover when selling. Other than physical gold, users can buy gold ETFs. These are funds that mostly invest in gold, and can be purchased and sold on the exchange. For buying 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 way as listed shares are bought.

Things to Remember Before Purchasing Gold in Tirunelveli

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

  • Level of purity: The yellow metal is available in different purity levels. Its purity can be measured on the basis of Karat and fineness. The level of purity has an impact on the rate of gold.
  • Hallmarking: While buying physical gold, it is necessary to check for hallmarking. Hallmarking is compulsory on gold ornaments and coins. The Bureau of Indian Standards has been set up by the government for ensuring that individuals do not get cheated when buying gold.
  • Making charges: Another important element that has a bearing on the price of gold is its making charges. While some jewellers determine making charge at a fixed rate per gram of gold, others may charge it on the basis of a percentage of the total jewellery weight.

4 Months Gold Rate in Tirunelveli

Trend of Gold Rate in Tirunelveli for September 2019

TypePeriodRs./10gm
Lowest gold price on15 Sep 2019Rs. 37,643
Highest gold price on04 Sep 2019Rs. 39,595
Gold price on01 Sep 2019Rs. 38,819
Lowest Price on AugustRs. 34,020 on August 1 Rs. 35,220 on August 1
Overall PerformanceRisingRising
Percentage Change+11.58%+11.47%

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for August 2019

TypePeriodRs./10gm
Lowest gold price on02 Aug 2019Rs. 34,821
Highest gold price on30 Aug 2019Rs. 39,189
Gold price on01 Aug 2019Rs. 34,850
Gold price on31 Aug 2019Rs. 38,839
Overall performanceRisingRising
% change+4.24%+4.09%

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for July 2019

TypePeriodRs./10gm
Lowest gold price on02 Jul 2019Rs. 33,750
Highest gold price on19 Jul 2019Rs. 35,440
Gold price on01 Jul 2019Rs. 33,809
Gold price on31 Jul 2019Rs. 35,093
Overall performanceRisingRising
% change+5.80%+4.89%

Source: GoldPriceIndia

Trend of Gold Rate in Tirunelveli for June 2019

TypePeriodRs./10gm
Lowest gold price on20 Jun 2019Rs. 33,039
Highest gold price on26 Jun 2019Rs. 34,805
Gold price on01 Jun 2019Rs. 32,217
Gold price on30 Jun 2019Rs. 34,185
Overall performanceRisingFalling
% change+1.97%+0.73%

Source: GoldPriceIndia

How GST Impacts Gold Rate in Tirunelveli

The tax charged on gold prior to the implementation of GST was - 1% service tax and 1% VAT. Today, the GST applicable on gold is 3%. Additionally, gold involves a 5% making charge. The GST council had earlier planned to charge 18% as gold making charges. However, when the new tax regime came into effect, the council kept it at 5%.

What is BIS Hallmarked Gold?

The BIS system of hallmarking of gold jewellery started in 2000. Those hallmarked by the Bureau of Indian Standards shall bear the BIS logo. This is proof that the purity of the gold has been verified in one of the bureau’s licensed laboratories. It is to be noted that BIS hallmarking is not mandatory and not all jewellers offer hallmarked BIS jewellery. Some of them 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 recommended to check with the jewellers whether they offer BIS hallmarked ornaments.

How to Buy Gold after Checking Gold Price in Tirunelveli?

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

  • Purchasing 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 government-issued Sovereign Gold Bonds
  • Investing in companies that are involved in the mining, extracting and marketing of gold

Conclusion

As seen from the points mentioned above, gold is a worthwhile investment since it acts as a hedge against inflation. Its returns over a period of time would be in line with the rate of inflation. Another reason why investors tend to prefer gold is due to the fact that gold is negatively correlated to equity investments. From the year 2007, it was observed that the equity markets were not performing very well, whereas gold did. Thus, including gold in one’s portfolio mix can help bring down the overall volatility of the portfolio.

FAQ's On Gold Rate in Tirunelveli

What is per gram Gold Rate in Tirunelveli?

According to the GoldPriceIndia website, the gold price for 24 karat gold is Rs. 3,809 per 1 gram.

What is 10 gram Gold Rate in Tirunelveli?

According to the GoldPriceIndia website, the gold price for 24 karat gold is Rs. 38,092 per 10 grams.

What is 100 grams Gold Rate in Tirunelveli?

According to the GoldPriceIndia website, the gold price for 24 karat gold is Rs. 3,80,920 per 100 grams.

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