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Today’s gold rate across all major cities in India
22 Jan 2021
22 Carat Gold
24 Carat Gold
From time immemorial, gold has been one of the most popular investment instruments for Indians. Even with rising prices, gold is viewed as a safe mode for investment.
Measurement of gold
The purity of gold is measured in karats, whereas the weight of gold is measured in troy ounces (1 troy ounce = 31.1034768 grams).
What is a karat?
A karat is used to denote the purity of gold. 24-karat gold is pure gold, but it is malleable. Hence, it is mixed with a metal like copper or silver to make jewelry. One karat is equal to 1/24th of the whole. So, if a piece of gold is marked 18-karat, it means that it is made of 18 parts gold and 6 parts copper.
24 karat is 99.9% of gold while 22 karat is 91.6% pure. That is why the price of 24 karat gold is higher than 22 karat gold.
Following is the fineness scale which is used while defining the purity of gold:
24 K = 99.9% Pure
22 K = 91.6% Pure
18 K = 75% Pure
14 K = 58.5% Pure
10 K = 41.7% Pure
Fun fact: All the gold produced in one year globally could just about fit in the average person's living room!
Factors That Determine Gold Prices in Bangalore
While the demand for gold has a role to play in its fluctuating price, there are several other factors that determine the price of gold. Following is an overview of some of the factors that affect the price of gold in Bangalore:
Supply and demand
Simple supply-and-demand economics can influence physical gold prices to a large extent. As with any product, increased demand coupled with low supply has an upward effect on the price graph. Conversely, an oversupply of a product or service with a feeble demand can push prices lower. The same principle applies to gold. Traditionally, there is a surge in gold demand during festive seasons, leading to a rise in gold prices.
Weakening US dollar
The price of gold is dollar-denominated. Hence, the movement of currencies–specifically the U.S. dollar–is another strong influencer. A falling dollar pushes up gold prices and vice versa. Conversely, a strengthening U.S. dollar (that often comes about because of a growing U.S. economy) pushes down gold prices. Note that gold and the U.S. dollar have an inverse relationship. When the US dollar is strong, investors invest in the currency rather than in the precious metal.
When inflation rises, the value of the currency goes down and therefore people invest in gold in order to hedge themselves from falling currency value. Hence, during times of inflation, especially over a longer period, gold becomes a tool to hedge against uncertainties. This cause the price of gold in Bangalore to rise.
Fixed Deposit interest rates
When fixed deposit interest rates rise, investors look to invest in such investment instruments that yield a fixed return, unlike gold which does not guarantee any such return. So, demand takes a back seat with prices falling. Alternatively, when fixed-income investment interest rates fall, investors prefer investing in gold as an alternative investment option. Thus, the demand for gold rises, pushing up the price.
Seasonal demand pushes the gold price higher. Again, this is related to the supply and demand principle. Traditionally, in India, the demand for gold rises during auspicious festivals, thereby pushing up the price of gold in Bangalore.
Apart from the above-mentioned factors, when demand for gold increases in the international market, the price of gold naturally increases in Bangalore too. It is important to note that gold prices can also vary across different states in India. Port cities usually have gold that is priced at a slightly lower range than in rural areas. This is due to the transportation cost associated with importing and transport of gold. Again, demand and supply influence the price of domestic gold.
Why gold prices in Bangalore differ from other cities?
Gold is a precious commodity that is imported from foreign countries. Cities that have ports have the chance of accessing gold much quicker. Due to the number of logistics involved, gold prices may vary from state to state and in different cities.
Buy gold in Bangalore
Gold is one of the most sought-after commodities in India. Gold is part of every household in Bangalore and is especially in demand during festive seasons. Gold is an important part of Indian culture, which is why it is much sought after.
Commonly, gold is bought as a form of investment due to its ever-increasing price. Following are some of the factors to keep in mind if you're wondering how to buy gold in Bangalore.
The purity of Gold: While buying gold, obviously the first thing to keep in mind is its purity (measured in karats). 24 karat is 99.9% of pure gold while 22 karat is 91.6% pure. Following is the fineness scale which is used while defining the purity of gold:
Understand the Hallmarking of Gold: While buying gold, it is important to understand how hallmarking works. The Bureau of Indian Standards (BIS) operates a hallmarking scheme, whereby representatives visit jewelers and assess their gold quality. If it meets the required standards, the jeweler is granted a license. Only jewelers granted a licensee can get their gold jewelry hallmarked for purity, after extensive testing, by BIS-recognized Assaying and Hallmarking Centers in India.
Check the price of Gold: Since India does not mine gold, all gold supplies are imported from overseas. This means the price of gold in Bangalore is greatly influenced by the international market and currency fluctuations. Before buying gold, always check the per gram price as it changes on a daily basis. You can check the price of gold on our website.
Disclaimer: The information on the prices of the gold rate is merely indicative and is susceptible to change with market value and is provided on an as-is basis. The information contained here is not intended as investment advice. CreditMantri is in no way responsible for any loss arising from the use of data contained on this website.
1. What are the taxes when buying gold jewelry in Bangalore?
With the introduction of Goods and Services Tax (GST), the customer is required to pay 3% on the value of the gold jewelry. This includes making charges. If the jeweler is charging you separately for making charges, then you need to pay 5% on the making charges.
2. Where can I get a regular update on gold rates in Bangalore?
You can check online portals such as CreditMantri for the latest gold prices in Bangalore.
3. Which gold is better to buy, 22 karats or 24 karats?
24 K is the purest form of gold, which comprises of 99.9% pure gold. While this is expensive than 22 karat gold, it is extremely malleable. Hence, if you are buying gold jewelry, 22 K is preferred by many as it lasts longer for jewelry.
4. How long does Hallmarking of gold take?
It may take approximately five to six hours to get the purity of gold checked. Once the purity of gold is established, it is hallmarked.
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