Today’s Gold Rate in Haryana

With the introduction of GST, customers are required to pay 3% on the price of gold including making charges.

Know more about GST on gold: https://www.paisabazaar.com/tax/gst-on-gold/

Gold prices in Haryana and all over India for that matter are influenced by a number of different economic, social, and political factors. Thus, it is not entirely possible to relate to the fluctuations in gold prices in Haryana to one single event. Despite this, given below are some of the factors that affect gold rate in Haryana:

Inflation: The value of our currency generally tends to go down when inflation rate appreciates. Gold is considered a tool to hedge against currency devaluation and inflation. So, during that time, people tend to hold money in the form of gold as it becomes, which increases the demand for gold that impacts gold prices in Haryana.

Rupee-dollar equation: It has a direct correlation with gold rates in Haryana since India imports 900 tonnes of gold annually to meet existing demand. However, the change in the exchange rates doesn’t impact global gold prices.

Geo-political factor: Gold usually does well during geopolitical crises as it is viewed as a source of safety amid such crises. Recent example of gold performing well, would be the coronavirus outbreak due to which gold is trading at an all-time high.

From ages, gold has become synonymous with wealth creation as its price (usually) trends upwards over the long run. Here are some of the options of gold investment:

Physical gold: Buying physical gold is inarguably the oldest route to gold investment. It can either be bought in the form of gold jewellery, gold bars, coins, biscuits. Gold jewellery is basically purchased for consumption purposes; it serves as an investment product in itself. If one is choosing physical gold as an investment choice, it is recommended to go for gold coins/bars/biscuits as there will be no value addition in terms of making charges. The making charges on jewellery are generally in the range of 6-25% which is irrecoverable if you sell it in the future.

Gold ETFs: It is similar to buying an equivalent sum of physical gold but minus the hassle that comes with keeping it. Gold ETFs are funds that invest in physical gold of 99.5 purity thus; its prices are mostly in line with the gold rate in Haryana. They are listed on a stock exchange and demat account is a prerequisite to purchase/sell units.

Sovereign Gold Bonds: Offered by the RBI, these bonds are another way to own gold in paper form. It pays 2.50% interest which is payable every 6 months. It comes with a tenure of 8 years with an exit option available from 5^th year onwards. Moreover, these bonds are exempt from capital gains tax on redemption. However, one should know these bonds are not available on-tap basis but are notified by the government periodically.

Digital gold is a mode of investing in physical gold and various digital platforms such as banks, brokers and fintech companies allowing customers to accumulate gold in their virtual wallet. Some of the features which investors should know before investing are given below:

• Digital gold is offered by MMTC-PAMP and Digital gold, it is further distributed through the digital platforms. For instance, MMTC-PAMP has appointed Motilal Oswal Financial services, Stock holding corp. of India and Paytm, HDFC securities among others as its distributors while Safe Gold is distributed through ICICI bank and others.
• Pricing of digital gold is calculating by taking dollar-rupee exchange rate, international price of gold and applicable custom duty
• One can buy and accumulate gold with as low as Rs 1. However, the minimum investment limit tends to vary depending on the issuer or distributor.
• Just like minimum investment ticket size varies, purity of gold these platforms offer also vary. While MMTC-PAMP offers 24K gold of 999.5 purity (highest quality of gold), Safegold offers 24K gold of 995 purity.
• The gold you buy from any of the platforms is held in the custody of the issuer till you choose to sell or have the gold delivered.

It is important to check the purity of gold you are buying to ensure you get the right price at the time of selling. Hallmarking is done by the BSI which certifies the purity of the gold used in ornaments. Following are the components one needs to check before buying:

In case of financial emergency, one can use their gold jewellery as collateral and avail gold loan facility from a bank or small finance institution. The loan amount will be sanctioned based on the purity, net weight of the gold in ornaments and tenure chosen. In return, the borrower needs to pay the interest on the loan and until it is paid, gold will be kept in a secured vault.