Today’s Gold Rate in Jamshedpur

Gold’s Rate in Jamshedpur, like the rest of India, is affected by gold’s international value and other factors. The International Gold Rate is derived from London Over-the-Counter (OTC) spot gold market trading and COMEX (Commodities Exchange) gold futures trading. Local gold rates in India are decided on the basis of excise duties, state and other local taxes.

3% GST is charged on gold articles, jewelry, coins, bullions, etc.

5% GST is charged on making charges of jewelry, this is borne by the jeweler who outsources jewelry crafting. This will eventually be borne by the end user but it won’t be marked separately on the bill.

Detailed Information on Goods & Service Tax applicable on Gold can be found here.

Top factors that decide Gold Rate in Jamshedpur are:

International Gold Prices – The International Gold Rate decides the gold rate in all the countries of the world including India. So, when international gold price goes up, the gold rate in Jamshedpur and India will rise too. 

Strength of American Currency – International gold rate is demarcated by the United States Dollar. Whenever the American currency weakens, the price of gold goes up.

This is because a weakening American dollar will strengthen other countries’ currencies increasing their buying power. Now, when the demand of gold goes up, given its fixed supply, the price of gold will rise as well. 

Strength of Indian Currency – India imports its gold from abroad. So, when the Indian currency weakens, less gold can be bought for the same amount. This will result in increased gold rate in Jamshedpur & India.

Demand and Supply – Gold’s supply is limited in the world. So its value is majorly decided by the consumption. When gold’s consumption increases its rate goes up as well.

Monsoon – Rural India makes up for about 60% of India’s consumption of gold. Rural people derive their income majorly from agriculture, which in turn is dependent on monsoon. Thus, a good monsoon will increase crop yield which in turn will result in increased demand for gold. This increased demand will increases the gold rate in Jamshedpur & India.

Geopolitical Factors – Gold provides a safe haven to people’s money during times of geopolitical turmoil, war, increased tensions between countries etc. Thus, during such times the gold rate goes up.

Purity – Pure 24 K (99.9% gold) gold will be more expensive in comparison to 22k gold (91.67% gold) or 18 K gold (87.5% gold).

BIS Hallmark – BIS hallmarks the purity of the gold articles. These tests are done by government certified labs. Hallmarked items are more expensive in comparison to non-hallmarked articles.

Making Charges – Ensure that you are being charged a competitive jewelry making fee. 

Weight of the Article – Ensure that you are charged the correct weight of the article before buying.

Invoice – Always keep the invoices safe and secure after you make a purchase. They can be asked for if you approach consumer court or decide to sell the article.

Suggested Read: Digital Gold – A Smart Way to Invest in Gold

Gold’s purity is measured in Karats. Karats divide the composition of the article in twenty-four parts. Here, 24 Karat gold refers to pure gold. And, 22 Karat gold means that 22 parts of the article are pure gold while other two parts are a different metal.

24 Karat gold articles (24 K) are more expensive than 22 Karat Gold articles (22 K).

The different ways to invest in gold are:

Gold Coins & Bars

If you wish to invest in physical gold article, consider buying coins, bullions, etc. from a bank, e-retailers, jeweler, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) and NBFCs. You can buy gold as small as 0.5 gram.

Gold Exchange Traded Fund (ETF)

In case of Gold ETFs, physical gold is represented on paper or digitally. 1 Gold ETF unit is equal to 1 gram of gold (99.5% pure). Gold ETF are traded in money and can be bought and sold at same price all over India.

Sovereign Gold Bonds (SGBs)

SGBs are securities issued by the Government of India. 1 bond represents 1 gram of 24 K gold. SGBs allow people to invest in gold without physically holding it. The tenor is 8 years long and your money will be locked in for 5 years. The bond can be redeemed against cash upon maturity. SGBs pay taxable interest on initial investment at 2.5% p.a. However, additional returns along with long-term capital gains (LTCG) are exempted from taxation.

The bonds are kept in RBI’s records or in demat form. This eliminates the risk of loss of scrip.

Q. Which is better- Sovereign Gold Bond (SGB) or Gold ETF?

From a returns and security point of view, SGBs are way better than Gold ETF as they provide interest on initial investment and the Long Term Capital Gains are exempt from taxes. However, SGBs come with a lock in period of 5 years. This limitation is not present in case of Gold ETFs. This makes it a great option for customers who don’t want to invest in gold by paying a one-time lump sum.

Q. Which is safer- Gold ETF or Sovereign Gold Bonds (SGBs)?

SGBs are backed by the government of a country while Gold ETF value is based on physical gold. Usually, SGBs are safer than Gold ETFs. That’s why banks take SGBs as collateral but not Gold ETFs.

Q. Which is better as a gold investment, Jewelry or Coin?

Resale value of jewelry is lower compared to gold coins, ingots, bullions, etc. Jewelry also carries with it the risk of theft. Also, purity of gold in jewelry can be a big concern especially if it is not BIS hallmarked.

Q. What is the investment limit for Gold ETF?

Gold ETF investments are not capped.

Q. How much can I invest in SGBs?

You can invest in a minimum of 1 gram and a maximum of 4 Kilograms of gold in a year.