The economy has recently slowed because of the pandemic we faced in the last two years. It has resulted in a worldwide rise in gold prices. During this time, interest rates fell while the government announced various cost-cutting measures to assist citizens. As a direct consequence, many investors started staying away from riskier assets. When investors lose hope that the market will recover shortly, they seek safe-haven assets such as gold to park their money. Why gold, not anything else? The reason is apparent. Because of gold’s strong liquidity, fierce traders increasingly see it as a viable investment option.
An investment in gold provides a safe haven in times of economic uncertainty. Even when inflation in India is higher than the interest rate, gold still does quite well.
But many investors are baffled by a single mystery: what’s driving up the gold rate today?
Gold’s worth in India is impacted by its global price. For this reason, accurate long-term gold rate forecasts remain elusive.
Gold’s price also depends on several criteria, including weight and purity. The heavier the weight, the higher the price. Although many jewellers use troy ounces and pennyweights, you can also measure gold in grams while checking its rate.
24-karat (999) gold is the most sought-after purity standard. So its price remains at the top of the list. The market rate of gold changes almost regularly. So, if a day from now, you will find that the 24kt gold price today will be higher or lower than the day before, don’t freak out.
The Regional diversity of Gold Price
The value of gold varies widely across geographic regions. Gold prices vary not just between nations but also between Indian states and cities.
The reasons are:
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Transport Costs
India is a big gold importer. As a physical asset, gold requires transportation and fees. Most imports are by air. The gold is then transferred to the interior. Fuel, vehicle, and staff expenditures are included in transportation costs. Gold demands rigorous security, besides transit costs, which adds to its price.
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The amount of gold acquired
Gold demand is higher in tier 1 cities like Chennai, Mumbai, Delhi, and Kolkata. It allows sellers to buy gold at a discount. So they can sell at lesser rates.
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Regional jewellery associations
Local-based jewellery associations or bullion groups set gold prices in a region.
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Gold Purchase Price
When a jeweller purchases inventory at a discount, he charges less for the gold products. And vice versa.
Seasonal Upsurge in Gold Price
Due to its high use in the industry, jewellery makers in India face persistent price fluctuations rather than a stable market price for gold. The greater demand for gold also increases its scarcity. Such things happen in our country often. During major festivals like Diwali, Indians traditionally increase their investments in coins and bars. These products are primarily manufactured using pure gold. Consequently, if you search with 24kt gold price today, you might find some unexpected figures.
Similarly, the purchase of gold jewellery increases during the wedding season. Thus, it adds up to gold’s value.
Gold is today’s third most valuable jewellery metal, behind silver and platinum. However, it is the first item on the list to apply equally to both the commercial and creative sectors. It holds high aesthetic value due to its rarity and beauty, which justifies its increasing market rate.
Final words:
Before making a significant jewellery purchase or investing in coins or bars, checking the gold rate today using live web updates is highly recommended.
