Today’s Gold Rate in Assam

Across the globe, the gold rate is decided by the London Bullion Association and IBA publishes the price of gold in US Dollars which serves as a benchmark for bankers and bullion traders worldwide.

In India, the Indian Bullion Jewellers Association (IBJA) takes the predefined international price of gold as a base and adds import duty charges and other applicable taxes to it. The people in the association decide the rate at which the gold will be given to the retailers. The price is usually decided by taking into account the average of the ‘buy’ and ‘sell’ quotes provided by the well-known jewellers.

Before the implementation of the Good and Services Tax in July 2017, gold was subjected to 1% excise duty and 1.2% VAT (Value Added Tax). After GST was introduced both 1% excise duty and 1.2% VAT was replaced by 3% GST. However 5% processing charges and 10% custom duty remain unchanged and need to be paid along with GST on Gold.

Following are some of the factors that contribute to the price of gold in Assam-

1. Strength of US Dollar – A strong dollar clearly means falling gold prices in Assam as well as the whole country. On the other hand when the dollar weakens banks tend to invest in gold instead of the depreciating dollar.
2. Interest Rates FD – When FD rates fall, gold becomes a preferred investment option. When the demand for gold rises, the price increases too. 
3. Import Costs – India is not a producer but a consumer of gold. The import cost affects the gold price in the country.
4. Economic Instability – The price of gold tends to increase during the time of economic crisis. In such times, gold is preferred as an investment option hence leading to rise in its price.
5. Inflation – The price of gold tends to rise during the time of inflation. For instance, when the Central Bank buys gold as a hedge against inflation, the price of gold increases globally.
6. Demand Supply Ratio – The gold is imported in Assam as well as the whole country to meet the staggering demand. Whenever there is a crunch in the global supply of gold, the price of gold rises.

Buying gold can be expensive and hence it is important to keep certain points in mind before initiating the purchase.

Price of the Item: The price of gold fluctuates on a daily basis and hence it is important to check the gold rates on the day you decide to purchase.

Purity : Karat or Carat is the unit that defines the content of pure gold in the item. 24K Gold is however considered to be the purest gold containing no impurities.

Ensure Certification: It is imperative to check the hallmark sign on the item you wish to purchase. The sign ensures the purity content and whether the product meets the quality standards or not.

Weight of the Item: The more the weight of the gold item, the higher will be its price. Hence before buying you must calculate the price of the item on the basis of its weight and the present day gold rate as per your location.

Bill of the Purchased Item: It is important that you collect the invoice of the item purchased from the seller. It serves as an important document for future purposes also.

‘Karat’ or ‘Carat’ is the unit used to define the purity of gold. It refers to the ratio of an alloy mixed with gold. As pure gold is relatively soft, it needs to be alloyed with another metal to be successfully made into jewellery etc. Here is the difference between the purity content in different karats of gold:

• 24K- 9% Pure
• 22K- 3% Pure
• 18K- 75% Pure
• 14K-5% Pure
• 10k- 41.7% Pure

Below listed are some of the popular and convenient gold investment options people generally opt for:

1. Gold JewelleryBuying gold jewellery is the most popular and common way of investing in gold.
2. Gold Coins, Bars and Bullions
   The other option of investing in gold is to buy it in the form of coins, bars or bullions. Make sure to buy only certified gold to ensure its purity.
3. Gold ETFs
   Investments in gold ETFs can be done online, changing the way gold is bought and giving gold investments in Assam a whole new dimension. Each ETF unit is equivalent to 1 gram of gold. ETFs are traded on the stock exchange, hence you can buy and sell easily and there are no liquidity issues.
4. Digital Gold
   ‘Digital Gold’ is offered on the mobile wallet platform of Paytm and ‘GoldRush’ and is another convenient way of investing in gold.

Q. Why can’t we make jewellery in 24K gold?
24K gold is relatively too soft to make any jewellery. Hence, jewellers use 22K or 18K gold for jewellery that can withstand daily usage.

Q. What is the best time to buy Gold in Assam?
Gold rate in Assam fluctuates on a daily basis due to various factors. It is advisable that you should accumulate gold on each dip as this will help you to average out on prices. At present, gold prices are showing a hike due to the global uncertainties.

Q. Is gold a good investment in Assam?
It is true that investment in gold yields great returns if kept for a long term. However, it also depends on how you have invested in gold.

Q. Does recession affect gold prices?
An economic turmoil can lead to a hike in the gold prices. Like in the period of 2008-2010, gold prices in India rose from Rs 10,800 in 2007 to Rs 12,500 in 2008, Rs 14,500 in 2009, and Rs 18,500 in 2010.