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Today’s gold rate across all major cities in India
25 Jan 2021
22 Carat Gold
24 Carat Gold
Since it was discovered, gold has been valued for its uses in making jewelry, art, and money. In its pure form, gold has a deep yellow color and is incredibly soft, supple and ductile. Culturally, it is often associated with wealth and is a status symbol. Gold is incredibly resistant to corrosion, rust, and decay, and is resistant to bacteria. For that reason, coupled with its rarity, it is used as the standard against which we measure the value of money.
No single precious commodity on earth has had such a huge influence on the course of human history and the shaping of society, culture and science as gold. The allure of gold and the yearning to own it dates back as far as the beginning of mankind itself. 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 extremely 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% is 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: Due to the demand for gold, fake gold medals and coins are in abundance. Real gold will always have a hallmark stamped on it, which proves that it has been tested. A hallmark shows the carat (how pure the gold is), the maker of the gold, and which authority tested the gold. When it comes to old gold, the hallmark can help to understand its history.
Factors That Determine Gold Prices in Delhi
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 Delhi:
Gold moves with other commodity prices and global growth
Gold is correlated to other commodity prices. In particular, it is closely linked to crude oil and copper. Gold appreciates with trade and growth "imbalances" against the United States. Gold typically rises in price with economic improvements in emerging markets and/or Europe when the U.S. cannot cope with this pace.
Industrial and Commercial demand
India and China are some of the largest consumers for gold jewelry. When the demand for jewelry increases and the supply is restricted, the price of gold automatically increases. As soon as the demand for gold decreases, the price of gold also depreciates. This is based on the supply-demand principle.
Value of the US dollar
Since gold is priced in U.S. dollars, the value of the dollar largely impacts the price of gold. 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.
The central banks of various countries control the money supply, oversee monetary policy and currency, set interest rates and attempt to manage inflation. Central Banks also buy gold, largely because it acts as a hedge against the US dollar (gold and the US dollar have an inverse relationship). Holding physical gold also strengthens a nation’s currency. This affects gold prices.
Supply and Demand
Simple supply-and-demand can influence physical gold prices. As with any product, increased demand along with a low supply causes the price to go up. Conversely, an overabundance of a product or service coupled with a feeble demand can cause the price to spiral down. The same principle applies to gold. Traditionally, there is a surge in gold demand during festive seasons, leading to a rise in gold prices.
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 valuable tool to hedge against economic uncertainties.
Gold prices rise with falling interest rates. Fixed deposit funds are the most important driver of financial markets. Therefore, gold prices fall when such investment instruments become more attractive compared to gold. In times of high-interest rates, the gold price is weak and vice versa. When fixed deposit interest rates rise, naturally, investors would want to invest in investment instruments that yield a fixed return. This is unlike gold which does not guarantee a fixed return. So, demand takes a back seat with prices falling.
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 Delhi.
Apart from the above-mentioned factors, when demand for gold increases in the international market, the price of gold naturally increases in Delhi too. It is important to note that gold prices can also vary across different states in India. This is due to the transportation cost associated with gold. Again, demand and supply influence the price of domestic gold.
Buy gold in Delhi
Gold is one of the most sought-after commodities in India, especially during festive seasons, when jewelers announce discounts and sales. Gold holds an important part in 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 looking to buy gold in Delhi.
The purity of gold: The first thing to keep in mind is the purity—measured in karats—of gold. 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:
When you buy gold jewelry, always check for its purity.
Bureau of Indian Standards (BIS) hallmark: The easiest way to check for the purity of gold is to look for hallmarking. A hallmarked piece of jewelry can be trusted for its authenticity and purity. This certification helps in identifying the correct value of the jewelry. The Bureau of Indian Standards (BIS) is recognized by the Government of India as the sole accreditation agency to certify gold. It is always advisable for a buyer to purchase hallmarked jewelry to avoid getting duped.
Check the price of Gold: India is one of the largest importers of gold in the world. All gold supplies are imported from overseas. This means the price of gold in Delhi is greatly influenced by the international market and currency fluctuations. Before buying gold, always check the per gram price on a reputed website like CreditMantri. It is important to note that the price of gold fluctuates on a daily basis.
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 is gold hallmark?
Gold hallmarks show the purity of gold in a piece of gold jewelry. It includes the mark of the assaying office that certified the purity as well as the fineness or karatage of the gold.
2. What is the difference between 22K and 24K gold jewelry?
The “K” stands for karat, which represents the purity of gold. Because pure gold is very malleable, goldsmiths mix it with other metals like silver or copper to make it more durable and harder. The higher the karat number, the higher the percentage of pure gold in the jewelry. The higher the karat, the higher the cost.
3. Which gold is better to buy, 22 karats or 24 karats?
24 K is the purest form of gold. 24 K is expensive than 22 K gold, as well as extremely pliable. Hence, if you are buying gold jewelry, 22 K is preferred by many as it lasts longer for jewelry.
4. Where can I get a regular update on gold rates in Delhi?
You can check online portals such as CreditMantri for the latest gold prices in Delhi.
5. Is gold toxic?
Although gold is a dense metal, it is generally non-toxic. Gold sheets are used in food decorations and can be consumed safely.
6. Why do gold prices in Delhi differ from other cities?
Gold is a precious commodity in Delhi that is imported from overseas. 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.
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