
Today Gold Rate in Chennai is Rs. 0.00 per 10 grams for 24 Karat
(10 grams = 1 tola gold)
Today Gold Rate in Chennai is Rs. 0.00 per 10 grams for 24 Karat
(10 grams = 1 tola gold)
India is the second-largest consumer of gold with an annual demand of 800-900 tonnes approximately, with most of the demand coming from the south India. Particularly Chennai where Gold is not just seen as a valuable metal but When talking about Chennai particularly talking about Chennai, Gold is not just a valuable metal for them, but as a mode of generating wealth perpetually (so called eternal wealth) and holds traditional sentiments. Gold in Chennai is considered auspicious and has immense significance in marriages and religious ceremonies.
Gold Rate Today : Hyderabad | Kerala | Mumbai | Delhi | Bangalore | Pune | Kolkata | Chennai
Silver Rate Today : Bangalore | Hyderabad | Delhi | Chennai | Mumbai | Ahmedabad | Jaipur
Of late, there has been a change in the way people invest in gold such as Gold ETFs and Gold Sovereign Bonds. It is because the metal is viewed as an asset class is an effective portfolio diversifier. Today gold rate in Chennai has also been showing upward trends over the years again, adding to the demand for gold.
India is considered as a consumer and not a producer of gold. This implies that the country doesn’t mine gold. India relies heavily on imports to meet existing gold demand. Gold prices are derived from London’s over-the-counter market. Gold rates are set daily twice a day at 10:30 AM and 3 PM in London Bullion Market Association (LBMA).
IBA (ICE Benchmark Administration) publishes the LBMA gold prices in US dollars which serves as a benchmark for gold producers, consumers, investors and central banks worldwide. On the basis of this, the prices of gold are valued and traded throughout the world. In India, Indian Bullion Jewellers Association, banks and many private companies, etc. play an important role in fixing the Chennai bullion rate.
Previously excise duty was levied at 1% and VAT at 1.5% on the yellow metal but now after the implementation of Good and Services Tax, the consumer is required to pay 3% GST on the value of the gold jewellery including making charges. This move was welcomed by the big market players like Tanishq and PC Jewellers as the cost gap between the organized and unorganized gold market will come down. Apart from 3% GST for gold in chennai, taxes on processing charges and customs duty remain unchanged at 5% and 10%, respectively.
Trading in gold is carried out worldwide. This is why gold rates in India are influenced by a number of different economic, social, and political factors. These factors are discussed below:
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Gold prices usually vary from city to city in India due to the two main reasons given below:
The consumer won’t get the gold at the same price across the nation due to the difference in transportation cost and different jewellery associations. Bullion or jewellery associations in India are responsible for regulating the gold prices on a daily basis, which is done twice in a day. Today gold rates are calculated by taking international gold prices at that particular time plus incurred cost which leads to the variation of prices in different cities.
Through the given formula, consumers can calculate the final price of their gold jewellery:
Final Price of the Jewellery: Price of the gold(22/18/14 karat)* Weight(in grams)+ Making Charges+GST at 3% on the price of (Jewellery Making charges)
Many financial experts believe that gold should be a part of every investor’s investment portfolio as it acts as a hedge against various market uncertainties. Also, it has been observed that the value of this commodity in the long run always appreciates. Following are some of the ways to invest in gold:
Gold Coins: Gold coins are distributed through recognized MMTC outlets, bank branches and post offices and comes with a buy-back facility.
Gold ETF: It is popularly known as paper gold and is traded just like stocks. It is similar to buying an equivalent sum of physical gold but you get it in the form of paper or is visible in your portfolio online. To get started with the gold ETFs, the investor needs a trading account with a stock broker and a demat account. However, if one invests via paisabazaar portal, one doesn’t need a demat account to get started. One can either invest in lump sum or even invest through SIP.
Sovereign Gold Bonds: Issued by the RBI, they are listed on the National Stock Exchange and Bombay Stock Exchange. The tenure of the bonds is 8 years with the exit option available after the 5th year. Through gold bonds, the investor can earn assured return. They are not available round the year but are notified from time to time.
Digital Gold: One can also start with digital gold where one can get started as low as Rs.1. Many online platforms such as PayTm, Freecharge offer investment into digital gold. Digital gold offered by MMTC-PAMP is 99.9 percent pure whereas SafeGold offers 99.5 percent purity.
Gold Saving Schemes: Many jewellery houses have also started offering gold saving schemes which allows buyers to save systematically for the chosen tenure. For e.g, the buyer needs to deposit a fixed amount every month for 11 months and jeweller on the other hand will add a month’s installment at the end of the tenure as a bonus. After the end of the term, you can buy gold from the same jeweller at a value which is equivalent to the total money deposited, including the cash incentive.
Before buying gold coins/ jewellery for investment, one should know the following aspects given below:
Purity of the gold metal has always been a concern for consumers. This is why one should always check for the BIS hallmark sign when buying gold. Bureau of Indian Standards (BIS), a governing body certifies the purity of gold jewellery/ coins/bars through hallmarking. This helps to maintain the standard of purity and ensures the jewellery you are buying conforms to the national and international standard of fineness and purity. As per the website of BIS, below are the components one should look at the time of buying gold jewellery:
Gold as an asset class has a negative correlation with other assets and usually helps to protect wealth in times of geopolitical tension, economic slowdown, increased volatility in financial markets. In 2019, gold generated 24% return in Indian rupee terms, outperforming the returns clocked by the equity market. The price of 10 gram of gold ended at Rs.39.076 as on December 31, 2019. Listed below are some of the catalysts which predicts the gold rates to be up in 2020:
Moreover, global economic slowdown, liquidity crisis in India and depreciation of the rupee against the dollar will support the gold market and will drive gold demand in 2020. As an investor, it is suggested to allocate a small portion of your entire investment portfolio (between 5% to 10% and not more) to gold either through gold savings funds or gold exchange traded funds.
Many banks such as ICICI bank, Axis bank, HDFC, etc. offer loans against gold/jewellery. One can easily get a loan against gold by bringing the gold article to such a bank. In the case of ICICI bank, the customer can get a gold loan from Rs.10,000 to 15 lakh. In return, the customer needs to pay the interest on that amount. However, the customer should know the following aspects of gold loan:
KDM: Cadmium is the filler which makers used to use with gold. However, now it is banned as it caused serious health issues for artisans working with it. Now workers have replaced KDM with advanced solder metal such as Zinc and other metals.
BIS 916: Gold is categorised on the basis of purity such as 24K, 22K, 18K, etc. If it’s hallmarked, 22K gold will be referred to as BIS 916 god. That means 916 gold is nothing but the 22K gold, i.e.,91.6 grams of pure 24 karat gold per 100 grams of alloy.
Hallmarked Gold: Bureau of Indian Standard is the National standards body of India which is responsible for hallmarking gold/jewellery under the BIS Act. Hallmark sign certifies that a piece of jewellery or gold bar conforms to a set of standards laid by the BIS.
In times of financial emergency, most people look for immediate cash and gold provides liquidity where one can exchange their old gold jewellery and get cash. Since the price of gold is increasing, many people are opting to exchange old gold for new. When you are exchanging old gold jewellery for a new piece, it is important to understand the tax implication on that transaction. When a customer opts to exchange old jewellery for new, the jeweller at the time of purchase is not liable to pay any tax. However, you as a consumer will pay 3% GST on the value of the new gold article. In case of cash, making charges will be deducted before paying the final amount to the seller.
Daily gold rate is calculated without taking GST into consideration unless mentioned otherwise. GST comes into the picture when you are doing a transaction. It is the final price of jewellery which includes GST.
IBJA is considered the Apex association for all bullion and jewellery associations in India which decides the day to day gold rates in India.
The process of certifying the purity of gold is called hallmarking. Through the following components, you can check whether the gold you have purchased is pure or not