Today’s Gold Rate in Kolkata

Gold is taxable in India. The taxes on gold in our country include excises, duties and levies such as the Wealth Tax, the Capital Gains Tax, the Value Added Tax, Excise Duty, Custom Duty and other applicable taxes.

Wealth tax comes into picture when the value of the gold you own in Kolkata has crossed the worth of Rs. 30 lakhs. If the value of the gold you own in Kolkata is less than Rs. 30 lakhs then you are exempted from the wealth tax. Also, if you sell gold and earn profit from it then you are liable to pay Capital Gains Tax on the profit too. Capital Gains Tax is of two types. One is Short Term Capital Gains Tax and the other is Long Term Capital Gains Tax. You are liable to pay the Short Term Capital Gains Tax if the gold is sold before 3 years of purchase; this tax is paid in accordance with the tax slab of the gold seller. However, you have to pay the Long Term Capital Gains Tax on gold if you are selling the gold in Kolkata after owning it for a period of more than 3 years. Moreover, you are also liable to pay Capital Gains Tax if you sell your Gold ETFs (Exchange-Traded Funds) in Kolkata.

So as is evident, taxes and duties imposed by the state and the central government have an influence on the gold rates in Kolkata. When these tariffs are increased by the authorities then the gold rates in Kolkata also expected to increase and vice-versa. Raising taxes on gold in the financial year budget or mid-budget have a lot many reasons. These reasons include raising import duties to curb excessive consumption of gold so as to prevent U.S.D outflow from the country. This influences gold prices across the country including in Kolkata. Also, if the gold rates plummet in the country, the central government is likely to curb gold consumption across the country including in Kolkata through application of taxes and duties. Currently, gold jewellery has a 1% Excise Duty, 1.5% VAT, 10% Customs Duty and 5% tax on processing charges (which in turn are 12% of the gold rate). This makes the cumulative tax on gold at about 12.4% in the pre-GST era.

However, after the introduction of India’s most revolutionary taxation reform since independence, Goods and Services Tax (GST), the tax on gold items such as jewellery has become 3% bringing in the cumulative tax under the GST regime on gold to approximately 14%. This means that under the GST regime, the tax on gold in Kolkata will be higher than it was in the pre-GST era; this may result in a hike in gold rates in Kolkata.

The price of gold in Kolkata may decrease during 2019 as the markets in the United States of America are facing inflation. Since it is likely that the United States Federal Reserve continues hiking interest rates, there is a possibility that the gold rates in Kolkata would drop. Our suggestion is that buy gold in Kolkata when the prices of the precious yellow metal are declining. This is known as buying gold on a declining strategy.

It is surely difficult to know whether the gold prices in Kolkata will continue to remain steady or fall due to inflation in the global markets but for sure there is a high probability that gold prices in Kolkata are up for a rally. Also, a decreasing trend of gold prices in Kolkata can lead to investors buying gold bonds as bonds are better when the gold prices are falling. Currently, gold rates in Kolkata have a chance to be stable at Rupees 28,000 per 10 grams mark and even have a possibility to dip if the interest rate hike continues throughout the year.

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KDM gold means that this gold has been fused or soldered with the soft, bluish-white metal, Cadmium. Earlier, jewellers used to sell and buy KDM gold without any hesitation as it was easy to be passed on, bought and sold but since reports surfaced that cadmium fused gold can be dangerous to the skin and cause allergies, 916 Karat KDM gold became uncommon in Kolkata. However, 916 Karat Hallmarked Gold is the one where the gold piece has been essayed or evaluated for purity by a Bureau of India Standards Certified Centre. Such a hallmarked gold is now being preferred in Kolkata as it closes down the gap between the organized and unorganized sectors of the Kolkata gold industry. 916 KDM Gold is the 22 karat gold option of cadmium fused gold in Kolkata and 916 Hallmarked gold is the 22 karat gold option of BIS certified gold in Kolkata.

Gold in an alloy material is measured in terms of Karat (k). 24 karat (24k) gold is considered pure gold and is commercially known as fine gold. The percentage of gold in pure gold is typically 99.95%. Any alloy with gold proportion below 99.95% is graded with a lower karat no. than 24.

For commercial purposes, gold is mixed with other metal to create alloys and gain tensile strength as gold is one of the most malleable metals on the planet. Since a karat is 1/24 part of pure gold by weight, a 24-karat gold material is pure gold and so 22 karat gold is 22/24 part gold and rest part other metals. Bronze, nickel, zinc, copper and silver are among the metals mixed with gold to produce an alloy. Gold which is mixed with copper is usually considered 18K gold or less and has a reddish colour. On similar lines, 18 K gold would have 18/24 parts of gold in it and rest part other metals. You can surely buy all types of gold, 24K, 22K and 18K and below gold in Kolkata. Do get the gold checked for its purity before buying or buy hallmarked gold which carries a certificate from a certified centre of the Indian Government.

Some of the major gold retailers and/or dealers in Kolkata are Syndicate Jewellers, Sawansukha Jewellers, Anjali Jewellers, J.K.Chandra Jewellers, M.P.Jewellers, Mahabir Jewellers, B.C.Sen Jewellers, Senco Gold and P C Chandra Jewellers.

Buying Gold futures is an agreement between a contract buyer and a seller where gold is sold to the buyer through standard, exchange-traded contracts through which the buyer agrees to take delivery of a specific quantity (e.g. 50 troy ounces) of gold at a predetermined price on a future delivery date from the seller.

In the market, the participants such as the consumers and producers can manage gold price by selling and buying gold futures. Gold producers use a short hedge to lock in a selling price for the gold they have while businesses can use a long hedge to secure a purchase price for the gold they need. Gold futures are also traded by speculators where they sell and buy gold futures when they feel that the gold rate in Kolkata will fall and rise respectively.

Moreover, you can buy gold futures to gain exposure in gold trading through lesser investment. Through this method, you can get the delivery of the gold you bought later while in the spot market, you gain access to the gold you bought right away.

There is a reason that gold prices in different cities are different. Gold prices depend upon a lot of factors including national, state and local factors. Now Kolkata is a port city where gold can be imported through sea and air easily. However, there are a lot of other factors which come into play in Kolkata and the final price of the different gold items in the city comes up close to the national average or even above that. Also, gold being bought by central banks changes the price of gold across the country and this has different effect on different markets. Usually when the central banks buy gold, the gold prices rise.

Taking the international price of the gold as a base, addition of import duty, excise duty and other applicable taxes happen and then an organization of bullion sellers decide at which rate the gold will be given to retailers which makes the gold price volatile and subject to change even twice in one day.

Today Gold Rate in nearest locations of Kolkata

Gold buyers in Kolkata make investments in gold mostly in the form of jewelry. Other gold investment options in Kolkata are as follows:

1. Jewelry – The jewelry designs of Kolkata fascinate all. Thus, the best way to invest in gold in Kolkata is buying gold jewelry. It is an asset and can be sold in the future for getting money as per the purity and rate of gold at the time of selling.
2. Gold bullion bars – Gold bars or gold bullion or gold ingot is refined metallic gold which is offered in different standard weights. Gold bars are up to 99.5% in purity and serves as a good option for gold investments.
3. Gold bullion coins – Coins are offered in different standard weights in grams. Gold coins are easy to store for future use. They can be either sold for cash or melted to manufacture gold jewelry.
4. Gold ETFs – This product depends on the price of gold and can be traded in the market just like any other company stock.
5. Gold accumulation plans – In these plans, the investor can deposit a certain amount of gold on a monthly basis. This deposit is made for a stipulated period of time. When this time-period gets over, the investor can get cash according to the value of the gold.
6. Allocated Gold Accounts – This account can be opened with a bank and the investor need not store the gold with him. These allocated accounts ensure that the gold is safe with the banks. The Investor can access the gold as and when required.

Major reasons to invest in gold

Gold investments are made due to the reason that gold belong to the precious metal group and holds good resale value. The main reasons for which people invest in gold are:

1. Gold is money but in a different form. You can exchange your gold jewelry or coin or bullion for money whenever you want.
2. In times of inflation, the prices of gold follow the same trend of price hike.
3. Buying, selling and storing of gold is can be done privately.