Today’s Gold Rate in Andhra Pradesh

It is imperative to understand the factors that determine and lead to fluctuation in the price of gold in Andhra Pradesh as well as whole country:

1. Supply-Demand Ratio: The most obvious factor that determines the gold rate in Andhra Pradesh is the demand-supply economies. If the demand of the gold is more than the supply in the state, the price of gold is bound to increase. However, if supply increases significantly and demand falls (as was the case after demonetization) the price tends to fall.
2. Central Banks Policies: The gold reserves are also maintained by Central banks as a measure against inflation. Also, the interest rate offered by banks also affects the gold price. A higher rate will mean low demand for gold and consequently falling price.
3. Global Conditions: The price of gold is also affected by global conditions such as political emergencies, economic fluctuations etc. During this time period, the price of currency is uncertain and hence people invest more in gold which leads to a surge in its price.
4. Uncertain Market Condition: Uncertainty in the stock market may also interest the investors to buy more gold. The reason is that gold is considered as a good investment option during inflation and thus people consider this to be a safer bet than investing in stocks or shares.
5. Rate of US Dollar: Dollar and Gold share an inverse relationship and hence the price of gold increases as soon as the value of the US Dollar goes down.

IBJA or Indian Bullion Jewellers Association plays an important role in determining day to day gold rates in India. IBJA consists of an association of the biggest gold dealers in the country.  These members on the basis of the average of ‘buy’ and ‘sell’ quotations provided by the top jewellers in the country decide the price of gold. This average rate is adjusted for local taxes and a rate is fixed accordingly.

The dealers arrive at these ‘buy’ and ‘sell’ quotations by taking the international price of gold as base and then multiplying it to the exchange value of Rupee and then adding applicable taxes to it.

The price of gold after the implementation of the Goods and Services Tax (GST) in July 2017 has seen some fluctuations. The 1% excise duty and 1.2% VAT levied earlier was replaced by 3% GST. However 5% processing charges and 10% custom duty remain unchanged.

The final price of gold jewellery is calculate at follows:

Final price of the jewellery = Price of (22 KT or 18 KT) gold X (Weight in grams) + Making charges + GST at 3% on (Price of jewellery + making charges)

Including the gold rate today in Andhra Pradesh, there are many things you must consider before initiating the purchase. The important things to consider are listed below:

• Price of the item- Before buying any gold item, it is important to know the present-day gold rate of the particular city. As gold rates tend to fluctuate on a daily basis, the price will vary from one place to another
• Purity of the item- Gold is available in different karats. Carat or Karat is the unit that defines the purity of gold. 24K gold is however considered to be the purest form of gold
• Making charges- It is significant to know the making charges levied on the gold item you are purchasing
• Hallmark certification- Make sure to buy gold items with hallmark certification on them. The hallmark ensure the purity of gold as well as the quality of the item
• Invoice of the purchase made- Do not forget to collect the invoice of the item purchase from your seller. The invoice is an important document, specifically when you have to sell gold in the future

Purity of the gold is measured in ‘Karat’ or ‘Carat’. Following is the percentage of purity in the carat defined:

24K- 99.9%

22K- 91.6%

18K- 75%

14K- 58.5%

10K– 41.7% Pure

24K (24 Carat) gold is the purest and finest of all and hence is charged highest. As the purity of the gold decreases, the price also observes downfall. However it is to be noted that you cannot buy gold jewellery in 24K because gold has to be mixed with other alloys before converting to jewellery. This is because pure gold is too soft to be converted into jewellery.

Gold is considered to be a safe investment option in Andhra Pradesh as well as the whole country. The many ways of investing in gold are mentioned below:

Gold Coins, Bars, Bullions

Gold can be purchased in the form of gold coins, bars or bullions. It is one of the most common ways of investing in gold.

Gold Jewellery

Buying gold jewellery is the most popular and convenient way of investing in gold. Make sure to check the present day gold rate, hallmark on the item and the purity of the gold you will be purchasing.

Digital Gold

This method of investing in gold is new but is more convenient and hassle-free. Platforms like Paytm, Google Pay offer gold investment plans to their customers.

Gold ETFs

ETF stands for Exchange Traded Funds. Investments in gold ETFs can be done online. ETFs are traded on the stock exchange which means that you can buy and sell easily without any liquidity issues.

Q. Is gold really an asset worth investing in?

Gold used to be the universal currency for time immemorial. The value of gold is globally recognized. Undoubtedly it is an asset worth investing in.

Q. Which is preferable out of 22K and 24K Gold?

The priority depends upon what you want to do with gold. If you are an investor and want to invest in gold, then it’s better to go for 24K gold but if you want to purchase jewellery it is better to go for 22K or less karat of gold.

Q. Why is gold alloyed with other metals?

Pure gold is a very dense and very malleable metal. The purest form of gold is too soft, hence it is alloyed with the elements such as copper, silver, nickel, palladium and zinc.

Q. What is the current import duty on gold?

After the 2019 union budget, import duty on gold was hiked from 10% to 12.5%.