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Check out today's gold rate in Chennai. Compare 22-carat and 24-carat gold prices per gram in Chennai & get the best value for your money.
14 Jun 2021
22-carat gold Rate
24-carat gold Rate
The trend of Gold Rate in Chennai for January 2021 (rates per gram for 22/24 carat gold)
The trend of Gold Rate in Chennai for December 2020 (rates per gram for 22/24 carat gold)
Gold is one of the most popular investments for Indian people. Demand for gold in Chennai is on the rise and the rates see a constant change in recent times.
22 carats and 24 carats in gold define their purities. 24 carat is 99.9% purer form of gold while 22 carat is 91.6% is pure. Hence, the price on 24 carat is higher than 22 carat. But for making jewellery, 22 carat is preferred as it is flexible and strong while the 24 carat, the purest form of gold can break easily.
The weight of gold is measured in grams or troy ounces (1 troy ounce = 31.1034768 grams)
What is a Carat?
Carat is used to represent the purity of gold. In simpler terms, it is a unit of fineness or purity. It refers to the ratio of an alloy mixed with gold, such as copper. Since pure gold is very soft, it needs to be alloyed with another metal in order to allow it to be made into jewelry etc.
24K or 24 Karat gold is pure 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
Disclaimer: The information on the prices of 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 in this website.
Factors That Determine Gold Prices in Chennai
Have you ever wondered why gold prices vary each day. What the factors that determine gold rates in the city. Below are some of the key factors that contribute to the price of gold in Chennai.
Strength of the US Dollar:
A strong US Dollar means falling gold prices in Chennai as investors invest in the currency rather than in the metal. On the other hand, if the dollar weakens, banks tend to invest in gold instead of the depreciating dollar. This move is taken in order to hedge against any uncertainties. This increased demand leads to an increase in the price of gold. Similarly, when the US dollar strengthens, investors shift their investments from gold to the US dollar. This fall in the demand of gold leads to a consequent fall in the price.
Chennai meets a huge chunk of its gold needs through imports, which means that import rates affect the gold price within the country. Since trading takes place in US dollars, a stronger dollar makes buying gold more expensive.
Fixed Deposit interest rates:
A fixed deposit is the most popular investment option for many millions of Indians. Gold comes a close second. When the FD rates fall, investors prefer investing in gold as an alternative investment option. When the demand for gold rises due to increased demand, the price increases too.
The price of gold tends to surge during times of economic crisis, as gold is considered a stable asset. Investors move their money out of riskier investment channels into gold. Gold also comes with the advantage of high liquidity and continues to be held in great value in times of instability.
In Chennai, demand for gold tends to rise during auspicious festivals, marriage seasons and other occasions, leading to increased prices.
The price of gold tends to surge during inflation. Since gold is bought as a hedge against inflation, this spiraling trend increases the price of gold.
Chennai’s contribution to the production of gold globally stands at a mere 0.75%. Since domestic production of gold in Chennai is severely limited, there is a crunch in supply too. In order to meet the staggering demand, gold is imported in large quantities. Similarly, when there is a crunch in the global supply of gold, gold prices surge upwards.
Gold mining requires large utilisation of energy per gram of gold produced and this cost is factored into the price. The gold price is also subject to the mining companies increasing prices because of production costs. This is reflected in the price paid while importing gold into Chennai.
When gold prices surge in the international market, the price of gold increases in Chennai as well. For instance, when the central banks buy gold as a hedge against inflation, the price of gold tends to go upward globally.
It is important to keep in mind that gold prices can also vary across different cities in Chennai. Key reasons for differences in domestic gold prices are:
Chennai imports most of its gold. Hence, port cities such as Mumbai and Chennai tend to have slightly lower costs than a city which is situated far away from the port owing to the cost associated with transportation of the precious metal.
Different states in Chennai levy different taxes which can cause a variation in price between states.
Volume of demand in different cities:
Chennai is a large country with a diverse population and demography. In rural areas, where the population is sparse, gold is priced higher than densely populated areas, where prices tend to be comparatively lower. Large cities, where the volume of demand is greatest, trade in large amounts of gold leading to slightly lower prices. Cities like Chennai, Delhi and Mumbai which see substantial gold demand tend to have slightly lower prices than other parts of the country.
Why gold prices in Chennai differ from other cities?
Gold is a precious metal that is hardly available in India. Most of the gold items are imported from foriegn countries. Cities that have ports have the chances of accessing gold much quicker. Moreover, transportation to another city is not required if the city has a port. Chennai has a port just like Mumbai which allows easy access to gold. Hence the chances are higher that gold prices in Chennai may vary from other cities.
If you look forward to investing in gold, you must be aware of the gold price before buying. You need to check the recent history of prices in the city. Make the purchase at the right time to enjoy a better price.
How to buy in gold in Chennai?
Buying gold in Chennai does not require in-depth knowledge as to how the gold market functions, given the multiple options available, but there are a few sensible ways to go about it. Investing in gold can be an expensive business and it is important to keep the following points in mind before spending your hard earned money.
Research gold rates
Gold prices fluctuate on a daily basis and it is important to observe market trends and stay in touch with the latest market trends. This will help you make the best and most informed decision on when to buy or sell.
Decide what kind of gold you want to buy
Gold comes in various forms like bars, coins, gold stocks, and jewelry. Each form offers its own unique advantages and disadvantages. If your intention is to sell the gold at a later date, then jewelry might not be the most optimal option and you could consider other forms of gold investment.
Easily the most important aspect when investing in gold is to look for the certification of the gold. Certain laboratories known as Assaying and Hallmarking Centres are authorised to certify the purity of the gold - jewelers do not certify the purity. However, only jewelers licensed by BIS (Bureau of Indian Standards) can get the jewelry certified at these Assaying Centres. Hallmarked jewelry can attest to different caratage, so a hallmark does not necessarily signify only 24K purity – it could be attesting 21K, 18K or 14K purity.
There are a number of online gold sellers today. While it may be convenient to buy online, you need to be very careful about buying only from trusted certified sellers as there is vast scope for adulteration and cheating.
How to buy gold coins in Chennai
Gold coins are extremely popular in Chennai as a gift on auspicious occasions. It also makes for an excellent investment choice since gold coins are available in different weights, which gives investors the freedom to choose according to their budget. A number of jewelers and banks sell gold coins. Gold coins are available online as well, although it can be risky to buy from anyone other than a certified jeweler/seller. Make sure that you get a purity certificate when you buy a gold coin. While banks sell gold coins, they are not authorised to trade in them so you might not be able to sell them back to the bank.
How to buy gold bars
The most important thing to keep in mind while buying any kind of gold is to check the current market rates. Gold bars can be purchased from banks and big jewelers, as they are typically kept for serious investors. These bars typically range from 500 gm to 1kg.
How can you sell gold in Chennai?
In Chennai, gold is always in demand, making it a highly liquid asset. Selling gold is not difficult, as most jewelers and pawn shops are willing to buy gold. But keep in mind that intricately designed jewelry might fetch lower prices than expected, as jewelers do not pay for the design but only for the weight of gold. Some jewelers might pay lower than the market price, although many jewelers and pawn shops are willing to buy gold at market rates. It is advisable to get quotes from a few buyers before making a decision. You need to make sure that you are aware of current market prices and the weight of the gold you are planning to sell so that you get the best possible price.
It is always a good idea to sell gold coins and gold bars rather than jewelry as they tend to attract better rates from jewelers as compared to jewelry.
If you do not want to sell your jewelry but are in need of funds, you can always avail of a gold loan against it, in case of an emergency. Banks and other NBFCs offer attractive interest rates on gold loans. Since your gold is used as security, there is very little documentation and the loan approval and disbursal process is quick.
What are the taxes levied on the sale of gold?
There are multiple taxes applicable on the sale of gold. Capital gains tax and wealth tax are applicable on the sale of gold.
Wealth tax is applicable on your purchase when the purchase crosses Rs 30 lakhs. Hence if it crosses that limit, a tax of 1% will be levied on the purchase. Remember, the Income Tax Authorities have the power to raid and seize gold. Apart from this, there is also a capital gains tax that is applicable on the gold sale. It is pertinent to note that this is only when you sell the gold and get profit out of it. There are two types of capital gains levied on the sale of gold i.e. short-term capital gains and long-term capital gains. In the case of short-term capital gains, tax is done as per your tax bracket, while in the case of long-term it is 20 percent, plus indexation.
1. Where can i get a regular update on gold rates in Chennai?
You can check online portals such as CreditMantri for the latest gold prices in Chennai.
2. What are the biggest drivers of gold demand in Chennai?
Bridal jewellry, fashion jewelry and daily wear jewellry are the biggest drivers of gold demand in Chennai?
3. Which gold is better to buy, 22 carat or 24 carat?
While both have their own uses and preferences. 24 carat is a pure form of gold that is higher in value, however 22 carat is preferred by many as it lasts longer for jewelry.
4. Can I invest in gold without buying it in physical form?
Yes, you can invest through gold bonds, derivatives, gold ETF and jeweler schemes. These methods allow you invest a regular sum of income and earn the value as per the market condition.
5. How long does it take to check the purity of gold?
It just takes a maximum of 15 minutes to check the gold. You can check the purity of gold at the hallmarking centres.
Good website - easy to use,
Good information. Thanks, creditMantri
good information thanks CreditMantri.
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