Today’s Gold Rate in Madurai

The gold rate in Madurai as well as the whole country is decided by the Indian Bullion Jewellers Association (IBJA). The IBJA considers the price of gold as base and adds import duty charges and other applicable taxes to it. The gold dealers and sellers decide the gold rate today by taking average of the ‘buy’ and ‘sell’ quotes provided by the well-known jewellers.

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Before the implementation of GST in July 2017, gold jewellery was subject to 1% excise duty and 1.2% VAT (Value Added Tax). However, after the implementation of GST, both these taxes were replaced by 3% GST. 10% custom duty and 5% processing charges remain unchanged and have to be paid with the applicable GST. 

For more information about GST on Gold, click here

Although there is no particular formula to determine the fluctuating gold rate, there are few parameters including the economic, social, and political factors which affect gold rate in Madurai:

• Change in US Dollar- Gold rates are inversely proportional to US Dollar which means whenever the US Dollar becomes weak, gold price will become low
• Demand and Supply- The demand and supply ratio also impacts the price of gold. If the demand is high and the supply is low, the price of gold will rise
• Purchasing power- The gold rate in Madurai as well as the whole country tends to increase during the wedding and festive season.
• Change in Interest Rates by Banks- Whenever the bank offers low interest rates, people tend to invest more in gold

It is significant to keep in mind certain things before initiating any purchase. Following are some of the things to consider before buying gold in Madurai city-

1. Purity: The first and foremost thing to understand is how pure the gold is. Gold is categorized in karats or carats that give an idea about the pure gold content in that particular item.
2. Hallmark: It is advisable to check the hallmark symbol before buying gold. BIS hallmark is given by the government of India and this mark certifies that the gold is as pure as the karats mentioned on it.
3. Other Charges: You should also keep a check on the making and wastage charges for the particular item.
4. Weight and Price of the Item: It is important to check the gold rate in Madurai before making any purchase. It is to be noted that the price of a gold item is directly proportional to the weight of that item.
5. Invoice: Do not forget to take the invoice of the item purchased from your jeweller to avoid any possible chances of fraud or discrepancies.

Karat or Carat refers to the purity of the gold. Here is the difference between 22 and 24 Carat Gold-

• 24K Gold is considered the purest form of gold (having 100% gold)
• 22K Gold however is a mixture of gold with small portion of alloy mixed with it

However, it is to be noted that 24 Carat pure Gold (24K) is always slightly higher in price when compared to 22 Carat (22K).

Following listed are some of the gold investment options at your disposal-

Gold Coins and Bars 

There are many private gold sellers and banks that sell gold coins. The coins are available in different sizes ranging from 2 to 50 grams. 

Exchange Traded Fund (ETF) 

This extends to gaining in the long term after 1 year. After 3 years of time, you can make long term gains out of physical gold. Demat account holders can invest in Gold ETFs. 

Gold Jewellery 

This is one of the easiest and most popular ways of gold investment. People not only buy the gold ornaments for fashion but for investment reasons as well. 

Gold Mutual Fund 

Investing in gold can also be done via a gold mutual fund that invests in various gold-related funds.

Q. Is gold a good investment in Madurai?

It is always seen that investment in gold yields great returns if kept for a long term. However, it also depends on how you have invested in gold. It is always better to invest in Sovereign gold bonds and digital gold bonds for assured returns.

Q. What is the current import duty on gold?

According to the 2019 union budget, import duty on gold was increased from 10% to 12.5%.

Q. Why can’t we make jewellery in 24K gold?

24K gold is too soft for making any jewellery. Hence, jewellers use 22K or 18K gold for jewellery that can withstand daily usage.

Q. What is the apt time to buy Gold in Madurai?

Gold rate in Madurai city fluctuates daily due to various factors and it is not possible to mention any specific time. However, experts recommend that you should accumulate gold on each dip as this will help you to average out on prices.