Today’s Gold Rate in Bangalore

After the implementation of Goods and Services Tax (GST), gold jewellery has been taxed at 3%. Prior to GST, these jewellery items attracted 1.5% VAT and 1% excise duty. The current rate, however, is below the anticipated rate of 5%. 10% custom duty and 5% processing charge would continue to be levied. Before the implementation of GST, approximate industry average tax was around 12.4% which has risen marginally to 14% after the implementation of GST. This move will help in reduction of cost gap between the organised and unorganised sector. It will benefit bigger players like Tanishq, PC Jewellers, etc. as there will be level playing field for small and big jewellers. Gold rate in Bangalore has increased marginally after GST was launched but it has had a minor effect on sales as gold price in Bangalore has not increased much.

Year 2018 has been a great year for gold in Bangalore till now. In the beginning of 2018, the gold price hovered around Rs 26,000 per 10 grams which has gained momentum and is currently priced at around Rs 28,000 per 10 grams. It is very difficult to predict the price of gold in Bangalore for the remaining of 2018. Increase and decrease in gold rates may be because of a number of reasons. However, investors primarily consider three factors to forecast gold rates in Bangalore:

• Investors follow news and every information related to gold as present gold rate in Bangalore goes down because of the strengthening of USD against INR. Sometimes gold rates in Bangalore change on global cues.
• Current gold rate in Bangalore and its forecast also depend on the rates of other precious metals. It is not necessary that every time the rate of other precious metal increases, the gold rate in Bangalore will also increase but it is the case in majority of the instances.

The exchange rate of rupee in the international market varies everyday which affects the gold rate in Bangalore as the variation in INR affects imports and exports in the daily market. So the INR exchange rate with other currencies affects the gold rate in Bangalore.

KDM Gold means that gold ornament in which cadmium is used as the soldering metal. Cadmium causes toxic fumes which are harmful for human skin but its effect on the skin of the wearer is still unknown. Many countries have banned its use. However, gold ornaments soldered by other metals can be used easily. 24 carat gold contains 99.99% gold whereas 22 carat gold contains 91.67% pure gold. KDM 916 is 22 carat gold in which cadmium is used as the soldering metal.

The Indian Government ensures the purity of gold ornaments by hallmarking gold as per its content. The Bureau of Indian Standards (BIS) evaluates and certifies gold ornaments. Those ornaments that meet the standards are provided BIS hallmark as a mark of purity and conformity with the standards. Hallmarked 916 Gold is the 22 carat cadmium-free gold that is safe for human skin. Hallmarked 916 22 carat gold is the most preferred buying option. People can check hallmark gold rate in Bangalore live and see that 916 gold rate in Bangalore today is different from other variant.

People generally prefer buying gold coins and bullion in Bangalore. Making charges, service charges and other taxes are not applicable on gold coins and bullion. Investors who invest huge amounts in gold go for these products. With the introduction of Gold Sovereign Bonds, people have started investing in it as well. However, women prefer buying gold ornaments.

Most of the investors buying gold ornament select the 22 carat gold variant and those buying gold for investment purpose buy the 24 carat variant. People in Bangalore have high affinity for gold. They generally buy gold on most of the festivals and occasions. Apart from the love for gold, the yellow metal also provides a good alternative to volatile investment options.

There are huge ups and downs in share market trading which makes it a risky proposition. Gold on the other hand, is relatively more stable and gives good and assured returns. Moreover, gold loan schemes offered by various institutions make it very easy for the people to take loans against them in times of financial emergency.

People generally prefer buying gold coins and bullion in Bangalore. Making charges, service charges and other taxes are not applicable on gold coins and bullion. Investors who invest huge amounts in gold go for these products. With the introduction of Gold Sovereign Bonds, people have started investing in it as well. However, women prefer buying gold ornaments.

Most of the investors buying gold ornament select the 22 carat gold variant and those buying gold for investment purpose buy the 24 carat variant. People in Bangalore have high affinity for gold. They generally buy gold on most of the festivals and occasions. Apart from the love for gold, the yellow metal also provides a good alternative to volatile investment options.

There are huge ups and downs in share market trading which makes it a risky proposition. Gold on the other hand, is relatively more stable and gives good and assured returns. Moreover, gold loan schemes offered by various institutions make it very easy for the people to take loans against them in times of financial emergency.

Gold is generally sold in 3 variants- 24 carats, 22 carats and 18 carats. 24 carat gold is the purest form of gold. It is 99.99% pure. But it is not used in jewellery as it lacks optimum strength and breaks easily. It is used to make bullion and gold bars. In order to use gold in jewellery, some metals are mixed in gold. This gives the metal the required rigidity and strength which is essential for making jewellery.  Thus, various metals are mixed in gold to a percentage of 8.33%. This variant is known as 22 carat gold which is 91.67% pure. 22 carat gold rate in Bangalore today lies between that of 24 carat and 18 carat variant.

22 carat gold is the most sought after variant as it has the required hardness as well as the content of gold in this variant is also very high. It is used for making jewellery. It has high purchase value. The colour of this gold can be altered by adding different metals in it. 18 carat gold is 75% pure and is dull gold in colour. It is the least used gold variant among the three. It has low resale value and is rarely used in jewellery.

People can invest in gold through the Gold Futures market. Under this proposition, people can buy or sell gold on a future date. An investor can buy gold at today’s gold rate in Bangalore without asking for the delivery on the same day. Both parties decide a day on which gold has to be given to the investor in future. In case the gold rate on that day is more than gold rate today in Bangalore, he makes a profit whereas if the gold price today in Bangalore is more than the delivery date, he would incur loss on his investment. One good feature of gold futures market is that people can invest even very less amount in this market.

There are a number of factors that affect the gold prices in Bangalore. Some of these are:

• The price of gold depends a lot on the international market. If the rate of gold increases around the globe, then you will see an increment in today’s gold price in Bangalore.
• When money (INR) depreciates with respect to other foreign currencies, gold prices increase. Most of the gold used in India is imported from different nations. When rupee depreciates, the government has to pay more to import the same quantity of gold from other countries. Thus the fall in rupee leads to an increase in the gold price in Bangalore.
• Festivals also have an impact on gold rates in Bangalore. Generally, gold rates are high on festivals such as Akshay Tritiya, Diwali, etc. when people buy gold in huge quantity.

Apart from its usage in jewelry and ornaments, gold also acts as an investment portfolio for the consumers in Bangalore. A number of gold dealers in Bangalore form the backbone of the city’s local gold industry, and are exclusively into precious metals. Apart from investments in gold, it is also traded as a commodity in various exchanges in Bangalore. Gold transactions in India, both selling and buying can be done according to personal choices. Gold buyers should make gold investments after comparison for gold rate trends in the market.

Gold investment options in Bangalore for gold buyers are as follows:

• Gold Jewelry – People in Bangalore buy gold jewelry in considerable amounts, therefore the gold consumption of the city is high. Gold jewelry is usually linked to tradition throughout India. As gold holds its value, it is considered as a safe investment option.
• Gold Coin and Gold Bullion – Investing in gold in the form of gold bullion bars, gold bullion coins, gold bars is a profitable option as one can sell off the gold when the rates are high or store it for future use.
• Gold Exchange Traded Funds – Gold ETF is another investment option which offers you the option to invest in gold without actually storing with you. ETFs can be easily converted to cash as and when required, making them an attractive investment option.
• Gold accumulation plans – Gold accumulation plans lets customers purchase gold in small amounts as per their convenience, based on a Daily Average Pricing Methodology. This plan makes gold accumulation convenient and transparent. The customers can convert the accumulated gold into coins or jewellery whenever they want.

Gold is looked upon as a good investment option owing to the following reasons:

Value

Unlike normal paper currency, the rates of which seem to be very vulnerable, gold has managed to maintain its value throughout time. Gold has been seen by people as a way to pass on their wealth from one generation to another. Gold is a precious metal and has been holding its values since years, for this reason people purchase and store gold which can be sold off for money when required.

Inflation

Gold presents people with some security against inflation, as when the cost of living increases, gold rates also tend to increase. Gold prices surge in times of inflation thus it acts as a protection in times of inflation.

Buying gold in Bangalore is relatively easy than other places as there are many credible jewellers in the 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. There are local jewellery shops like Bhima Jewellers and R R Gold Palace in Jayanagar and Jos Alukkas on Dickenson Road. Big jewellery chains like Tanishq and PC jewellers have a number of outlets spanning throughout the city.

People can also buy gold online. They also get a number of deals and offers on their online purchases. Credible companies sell good quality jewellery to their customers, be it online or at the shop. However, customers should check the BIS hallmark wherever possible before buying the product.

There are a range of banks and NBFCs that provide gold loans in Bangalore. Among these, Muthoot Finance and Mannapuram Finance are the top companies that provide loans at competitive rates. These companies take gold from you and after checking its purity, offer you the loan and disburse the amount instantly. So if there is a financial emergency, you can go for gold loans very easily. If you sell your gold ornaments, you will get the money instantly but you will lose your jewellery for ever. So in case your jewellery has some emotional importance, try to take a loan instead of selling your jewellery and losing it permanently.

Bangalore being a metro city has numerous jewelry stores spread across the length and breadth of the city. But, visiting every one of them to get the best jewellery at the right price becomes a daunting task. The most important thing to look for while buying gold jewellery is the purity, quality and price of gold. Gold dealers not only sell gold but also buy back gold items at a certain price.

There are many reputed gold dealers in the city including banks, bullion dealers,  jewellery shops, banks and others. Some of the renowned gold dealers in Bangalore include Lakshmi Gold Palace, Bhima Jewellers, Joyalukkas, Abaran Jewellers, Shubh Jewellers, Davanam Jewellers, P.C. Chandra Jewellers, Tanishq, Malabar Gold and Diamonds, Jos Alukkas, and many more. These gold dealers have been into the gold business since many decades and sell different variety of gold items such as coins, jewellery, bars, bullion, etc.