Today’s Gold Rate in Bangalore

Gold trading is carried out in a global marketplace and as such is influenced by a number of different economic, social, and political factors. This makes it difficult to relate to the fluctuations in gold prices in Bangalore to one single event. Despite this, there are certain factors that affect the price of gold in Bangalore and they are:

Inflation: When inflation rises, the value of our currency goes down. During that time, people tend to hold money in the form of gold as it becomes a tool to hedge against inflation and currency devaluation. This increases the demand for gold which increases the gold prices in Bangalore.

Rupee-dollar equation: The rupee-dollar equation has a direct correlation with gold rates in Bangalore since India imports 900 tonnes of gold annually. However, the change in the exchange rates doesn’t impact global gold prices.

Geo-political factor: It is seen that gold usually does well during geopolitical crises such as war. It is because gold is viewed as a source of safety amid such crises.

Supply-Demand angle: Global demand for gold is 1,000 tonnes more than its supply. Low supply is another factor for changes in gold rates in Bangalore.

Gold Rate in Bangalore for 916 Hallmark Gold

916 gold means 22 K gold, which is 91.6 grams of pure gold in 100 grams of gold that includes alloy. On this page, you can check the correct rate of 916 Hallmark gold i.e, 22 carat Gold Rate per gm in Bangalore.

When you are out buying gold jewellery in Bangalore, there are certain things you should be aware about at the time of purchase and they are as follows:

• Purity: Always check the purity of the gold jewellery you buy. The hallmark sign is a good indication. The Bureau of Indian Standards (BIS) is the accreditation agency that certifies and hallmarks gold jewellery. One can know the complete list of hallmarked jewellers on the BIS website. Any jewellery that has a hallmark sign will come with a number attached to it, a mark to identify the jeweller, and a year of hallmark along with a BIS stamp on it. For instance, if it says 22K, it means 91.6% purity (91.6 grams of pure gold that includes alloy).
• Cost per gram: Check the cost of gold of 24K/22K/ 18K (purity of gold) per 10 gram and then calculate the cost based on the weight (gram) you are buying gold jewellery/gold bar. Since the price of gold changes every day, it makes sense to check daily bullion rates for the consumers before buying gold in Bangalore.
• Know what you are paying: If your jewellery is studded with precious stones, you should check the exact net gold weight minus the weight of the stones embedded in the jewellery. If your jewellery has 40 grams of gold and out of which 5gm is stone then you should know about it and then pay accordingly.  Below is the formula through which you can calculate the final price of your gold jewellery:
  Price of (22K/18K gold)*Weight(in grams)+Making charges + GST at 3% on (Price of Jewellery + making charges)
• Check buy-back terms from the seller: To be on the safe side, you should know the resale value of your gold jewellery if you happen to sell it in the future or exchange it for a new design. Most stores have a buyback policy where they will give you 100% of the value of the gold prevailing at that time minus the making charges.  However, some may only give you the value of gold and not the making charges or stones.

Last but not the least, always ask for a bill with your purchase which should include important details of your transaction, net weight of gold purchase, etc.

Bureau of Indian Standards (BIS), a government body which certifies the purity of gold through hallmarking. This is being done to maintain the legal standard of purity. As per the BIS, listed below are four components that one should look at the time of buying gold bar/ jewellery:

1. BIS mark which indicates that it is verified in one of their licensed laboratories
2. Purity in Karat (KT)
3. Hallmarking identification mark/number
4. Jeweller’s identification mark/number

GST on Buying Gold in Bangalore

Now that you know what to check before buying gold in Bangalore, it is also important to know how gold is taxed at the time of transaction. Here it is explained how gold jewellery is taxed:

After the implementation of Goods and Services Tax (GST) on 1st July 2017, the consumer is required to pay 3% tax on the value of the gold jewellery including making charges. Further 5% would be chargeable as making charges. Over and above the GST of 3% and making charges, 10% custom duty would continue to be levied.

Know more about GST on gold

Yellow Gold: 24K is a pure gold but due to being too soft to make jewellery, it is mixed with other metals that help to alter its hardness, durability and appearance. 14K,18K contains high ratio of base metals such as zinc, nickel in their composition if compared with 22K gold.

White Gold: There is no such thing as natural white gold. 24K and 22K is a precious metal that is very soft to make white or rose gold jewellery for that matter. Thus, to make white gold, yellow gold is mixed with metals like palladium, zinc, etc. alloys and further undergo a rhodium coating that make white gold more durable metal than yellow gold. The value of white gold depends on the karat and how much metal was used to make the jewellery.

Rose Gold: It is made of pure gold mixed with copper and silver which gives it its rose tinge and also helps to strengthen the jewellery.

Note:

• Yellow, white and rose gold are labelled as a certain karat, such as 14K, 18K, and 22K. This refers to the purity of gold in the metal. For e.g. 14K means that 14 parts of the metal are gold and 10 parts are alloy. So, whether it’s white, yellow, rose gold, 14K always means 14 parts gold.
• White and rose gold is an alloy. So one should note that there is no such thing as natural white gold or pure rose gold

The value of gold is measured by its purity which is denoted in karat (K or sometimes in KT) or carat (Ct). Higher karat signifies higher gold purity. Here is a brief explanation that will help you understand the difference between 24K, 22K and 18K gold:

24K Gold: It is the purest form of gold (99.99%) and doesn’t have any other metal mixed in the composition. One should know that there is no higher form of gold than 24K. However, it is not suited to make regular forms of jewellery due to being too soft and malleable. This is why it is mainly used in making coins and gold bars.

22K Gold: Gold of this karat is also known as 916 Gold as it is 91.67% pure gold. In this, other metals such as copper, nickel, Zinc, etc.are also added to make the jewellery harder and durable. This is why Jewellers prefer either 22K or 18K gold to make heavily studded jewellery.

18K Gold: 18 Karat gold comprises 75% gold mixed with 25% of other metals like copper, silver, nickel, etc. It is less expensive if compared with 24K and 22K gold.

Buying gold in Bangalore is relatively easier than other places as there are many credible jewellers in this city. There are local jewellery shops as well as big jewellery chains in Bangalore. There are a number of upscale jewellery shops in MG Road area such as Tanishq and PC jewelers which also have a number of outlets spanning throughout the city. There are local jewellery shops too one can purchase gold from like Bhima Jewellers and R R Gold Palace in Jayanagar. Here is the list of top 5 places you can buy gold from in Bangalore:

1. Malabar Gold & Diamonds
2. Senco Gold Jewellers
3. Krishniah chetty & sons
4. Tribhovandas Bhimji Zaveri
5. Bhima Jewellers

Many people are moving from buying physical gold to investing in different gold saving schemes to further diversify their portfolio. If your objective is to bank on the value of gold increasing in future then investing in these schemes is your answer.

Gold ETFs: Gold ETFs are traded on the stock exchange at the prevailing market price of physical gold. Meaning, one can buy or sell their holdings at close to the market price. With Gold ETFs, investors do not have to pay any making charges or storage costs which are associated with keeping physical gold. Each unit of a Gold ETF represents 1 gram of 24KT physical gold.

Gold ETFs are offered by several private financial institutions and banks. The minimum required to start trading is 1 gram of gold. To start investing in Gold ETF, open a demat account; choose a fund and your ETF fund manager (broker) will do the trading on behalf of you.

Sovereign Gold Bonds: Offered by the Government of India and RBI, it is another way of owning gold in paper form. Their value is denominated in multiples of gold grams wherein the minimum investment required to start is 1 gram of gold.  The interest rate and price will be notified by the RBI at the time of issuance. Investing in SBGs helps you earn an assured interest rate where the interest will be credited semiannually to your bank account.

Gold saving schemes offered by Jewellers: Jewellers like Tanishq, Jos Alukkas, Malabar Gold & Diamonds, etc. offer gold schemes where you have to invest a certain amount every month for 11 months and 12th installment will be paid by the Jeweller.