Today’s Gold Rate in Mumbai

As you must be aware that the gold price in Mumbai changes every day. There is no “kingmaker” as such in the gold market of Mumbai who determines the gold price. The biggest factor in determining the price of gold in Mumbai is the fluctuation in the international rates. However, the Indian Bullion Jewellers Association plays an important role in determining the gold rate in Mumbai. Since, the primary source of gold in India is via import by banks, who supply this gold to dealers across India. The top gold dealers in India give their buy and sell price. IBJA or Indian Bullion Jewellers Association takes an average of these rates and determines the gold rate after adjusting the taxes. Other than this, the other factors that determine the everyday gold price in Mumbai are:

• Local import duty added to imported items
• Future market of MCX which is the largest commodity exchange in India.

Post the roll out of GST on July, the prices of gold has risen marginally. In the present scenario, the government imposes 3% tax which is 1% higher than the current 2% (1% excise duty and 1% VAT). The increase in 1% has to be paid by the customer. This is lower than the anticipated 5% GST. The idea behind rolling out a single tax in the Indian gold market was to make the gold price uniform in every state. However, a month after implementation of GST in the country, along with Mumbai, there was a huge difference in the gold price between markets in India. This proves that in the unorganized players still dominate the price of gold in Mumbai and other cities.

Before we discuss the price difference of 22 carat and 24 carat gold in Mumbai, let’s discuss the difference between the two. 24 carat gold is also called as pure gold. This means that it is 99.9% pure gold without any traces of other metal in it. 24 carat is the highest form of gold available in the market. However, due to less density, this is not recommended to make jewellery as it is soft. It is available in the form of coins and bars. Other than this, it is used in electronics and medical devices.

22 carat gold is 91.67% pure gold and the rest comprises of other metals like silver, copper, zinc, nickel, etc. By 22 carat, one means that the 22 part of the jewellery is pure gold and rest 2 parts are other metals. It is used to make plain gold jewellery as it is harder than more durable than 24 carat gold. But it is not preferred to make studded jewellery like diamonds and other stones. Other than this, there is 18 carat and 14 carat gold available which is basically used to make diamond and other stone jewellery. Since the purity of gold is less, the price of this gold is also cheap. Following are the prices of difference carat of gold:

Today 22 Carat Gold Price In Mumbai (Per Gram):

Today’s 24 Carat Gold Rate In Mumbai (Per Gram):

A day after GST roll out, the demand of gold in Mumbai decreased as the tax rate on gold increased to 3% instead of previous 1%. However, the market experts believe that the price rise will not affect the demand of the gold price in the latter half of 2017, when the festive and marriage season start in the city. Irrespective of high rates, the demand will normalize towards the year end and will not weaken the overall demand and supply.

Mumbai is one of the many gold jewellery hubs in India having a notable concentration of gold dealers and sellers. People prefer investing in gold as an asset in forms of ornaments, silverware, jewelry, and ingot bullions that can be used directly against loans while others do invest into mid and long-term plans in form of funds and accounts with various banks. The enormous amount of stores and sellers of these metals increases the competition, providing wider options to the buyers in terms of rates.

Gold investments also serve as an investment portfolio enhancer for several Indians because gold offers assured and stable returns to gold buyers with a short as well as long term perspectives. This has also led consumers to opt for gold over savings accounts. Investments in gold for Mumbaikars are in the following forms:

Jewellery

Like many other cities in India, Mumbai has a well-contained market dedicated to precious metals having numerous local shops as well as renowned jewelers and dealers that offer competitive market rates. Gold is mostly consumed as jewelries in India, serving for people with gold accumulation plans for future. Gold plated handicrafts and other gifting items are also fairly common in the city.

Coins

Owning gold coins is no more considered inconvenient and is the safest the quickest option for gold investments after jewellery. Gold bullion coins, the second most popular form of gold investments, are available in different purities as well as quantity of gold, making them a versatile and somewhat cheaper.

Bullions

Bullions are sold in larger quantities in form of gold bullion bars, generally over 1 kg per piece of the metal, also available in various purities. Customers must ensure they only approach well-respected dealers for the substantial amount of money involved and reliability issues.

Commodity Exchange

People also invest in exchanges such as NCDEX and MCX that sell gold on futures contracts and are open for 6 months in a year. Commodity exchanges allow customers to trade the metal without actually holding the metal by themselves.

Import Costs

Since the demand for gold is primarily met through imports, charges associated with taxes, duties and import costs play a major role in deciding gold rate. Therefore, higher the import costs, higher the price of gold.

US Dollar

Whenever the US Dollar weakens or loses value; gold rates rise in India and vice versa. This happens because even in the US, the central bank (which maintains US dollar reserves) hedges against the risk of devaluing dollar by investing in gold. As a result, the prices increase. This is further complicated when the Indian Rupee is performing lower than US Dollar, making gold purchases from foreign countries all the more expensive.

Global Economic Stability

Gold prices rise amid times of economic instability as gold becomes a safer asset, holding its value even during crisis. People, at such times, tend to move their money out of riskier assets and transfer into gold investments.

Season

India witnesses an increase in demand for gold jewelry, coins, artifacts, ornaments etc. during the festive season, weddings and other auspicious occasions, such as Dhanteras. Thus, with the rise in demand, the prices tend to be higher as well. The trend is repeated during inflation. Since gold transactions in India increase as a hedge against inflation, the prices tend to move upwards.

International Prices

In general, when gold rates see an upward trend globally, they tend to rise in India also.

Supply

Domestic production of gold in the global markets is limited, and so is the supply in India. These supply constraints can push prices in the upward direction and vice versa.

Inflation

During the time of inflation when the value of currency fluctuates, the value of gold is more stable. That is why gold is an attractive investment for most of the people, especially during the time of inflation. The demand of gold increases during the time of inflation, therefore, the gold price in Mumbai increases.

It is always advisable to buy hallmark jewellery which has various symbols. Hallmark is the official record of proportionate content in the precious metal. It is followed in many countries as a sign of purity of precious metal articles. Hallmark gold has distinctive properties and might be little expensive than non-hallmarked gold but it is still worth it considering that you will get guaranteed pure gold. The process of hallmarking includes the use of modern X-ray fluorescence technique. The hallmark is imprinted on every jewellery piece which comprises of four signs – Bureau of Indian Standard logo, Purity defined in carat, center identification mark and the logo/code of jeweler.

Ensuring that the buyers and investors receive high quality and pure gold has always been the biggest concern. That’s why the government is trying to add hallmarking centers in the country and Mumbai. The Bureau of Indian Standards is authorized to assay the hallmark in the country. Till now, there are 77 hallmarking centers in Maharashtra. In Mumbai, we have hallmarking centers as below:

• Leo Analytics Labs in Borivalli
• Mahavir Hallmarking Center in Zaveri Bazar
• Varsha Bullion Hallmarketing Center in Mumbadevi Road
• Mahalaxmi Hallmarking Center in Andheri (East)
• Variety Hallmark in Andheri (East)
• Bajrangbali Hallmark in Matti Gali
• Jupitar Hallmarking India in Zaveri Bazar
• International Hallmar & Assay in Andheri (East)
• M K Hallmarking Center in Zaveri Bazar
• Metro Assay & Hallmarking Centre in Andheri (West)
• Master Bullion Assaying & Hallmarking Lab in Junction Shaikh Memon St & Kalbadevi Road
• Quality Assay and Hallmarking Centre in Kalbadevi Road
• BRD Hallmarking in Borivalli (West)
• Pankaj Hallmarking centre in Kalbadevi
• Naakoda Hallmarking Centre in Borivalli (West)
• Hem Assaying and Hallmarking centre in Kalbadevi Road
• G.N.Hallmarking’s in Zaveri Bazar
• Nityanand Assaying and Hallmarking centre in Mulund (West)
• Akansha Hallmark Centre Pvt. Ltd. in Bandra (West)
• Parmeshwari Devi Hallmarking centre in Dhanji Street
• Vitthal Assaying & Hallmarking centre in Zaveri Bazar
• Variety Marking Center in Zaveri Bazar
• Nakoda Hallmarking Centre in Zaveri Bazar
• Akansha Hallmark Centre in Zaveri Bazar
• Akansha Hallmark Centre Pvt.Ltd. in Dahisar (West)
• Mangal Murti Hallmarking Centre in Kalbadevi Road
• Pioneer Hallmarking Centre in Navi Mumbai
• Classic Karat Assaylab Pvt. Ltd in Anderi (East)
• G.S. Hallmarking and Refinery in Dhanji Street
• Vijay Assay Hallmarking Centre in Zaveri Bazar
• Quality Assay & Hallmarking Centre(P)Ltd. in Andheri (East)
• R.J. Hallmarking Centre in Santacruz (West)
• Swarnbhushan Hallmarks in Dhanji Street
• Vellocity Assaying & Hallmark Centre in Malad (East)

There is an upper limit for Rs. 50,000 to import gold into Mumbai. This limit is for males. For females, they can import as much as Rs. 1 lakh. Beyond that, one has to pay a duty if 10% (approx.) In case you are taking gold away from Mumbai, then you will need export certificate. However, right before GST came into existence, the import of gold increased drastically as the dealers wanted to replace the old gold as soon as possible.

KDM is basically a type of jewellery which is an alloy of gold and cadmium. However, due to adverse health effects, it was banned and replaced by other gold alloys. This jewellery retains its purity when you sell it.  916 gold is basically 22 carat gold which denotes the purity of gold that is 91.6 grams per 100 grams. This is used to make jewellery as it is difficult to make jewellery out of pure gold.

916 Gold Rate Today in Mumbai: