Today’s Gold Rate in Mysore

International gold prices affect gold rate in Mysore and in other parts of India. The international value is derived from London Over-the-Counter (OTC) spot gold market trading and COMEX gold futures trading.

Since excise duty, state taxes, and other local taxes are applied, gold rates in India vary from one state to another.

If you buy gold coin, bullion or jewelry then you will have to pay a GST of 3%. 

Note: Jewelers who outsource jewelry making to a third party pay 5% GST on the making charges. This amount will eventually be borne by the customer. However, it won’t show up separately on the bill. 

Want to know more about Goods & Service Tax (GST) as applicable on Gold. Click here.

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International Gold Price – The gold rate in Mysore is dependent on the international gold rate. Hence, whenever international gold prices rise, Gold rate in Mysore will increase too. 

Strength of American Currency – The price of International Gold is in US Dollars and is in inverse relationship to it. Thus, whenever the value of US dollar weakens the Gold Rate in Mysore and rest of India increases. 

Strength of Indian Currency – India imports gold from abroad. Hence, whenever Indian rupee weakens less gold can be bought for the same amount. This in turn increases its price in India.

Demand and Supply – Since Gold is relatively scarce commodity; therefore, whenever its demand reduces the rate falls.

Monsoon – 60% of gold is bought in rural India, farmers and other agrarians. Farmers tend to buy gold during a good harvest and sell it in bad harvesting season. As crop yield is dependent on a monsoon; therefore, in a good monsoon year, the price of gold goes up.

Geopolitical Factors – Gold rates go up in times of political tension or other turmoil in countries. This is because gold unlike other investments gold is a safe haven for people’s cash reserves.

Purity – The purer the gold the more its value will be. Therefore, if you are looking forward to invest in gold buy 24K gold coins or bullions instead of jewelry.

Hallmark – Hallmarked gold items are more expensive in comparison to non-hallmarked items. The Bureau of Indian Standards (BIS) Hallmarks the gold articles establishing its purity.

Making Charges – Ensure you pay a competitive making fee and not an exorbitant one. 

Weight of the Article – Check whether you are being charged for the actual weight of the gold article.

Invoice – Original invoices might be asked for by the next purchaser when you decide to sell your gold article.

The purity of gold is marked in Karat and the differences between 22 and 24 Karat Gold are:

• Pure gold is marked as 24K
• 22K Gold is a mixture of gold & other metal

24 Karat Gold (24 K) is much more expensive than 22 Karat Gold (22 K). Jewelry is largely made with gold having 22 Karat purity or lesser.

The various ways to invest in gold in Mysore are:

Gold Coins & Bars

You may buy gold articles (coins or bars) from a bank, e-retailers, jeweler, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) or NBFCs like the Muthoot Group. You can start investing by buying gold as small as 0.5 gram.

Gold Exchange Traded Fund (ETF)

ETF stands for Exchange Traded Fund. In Gold ETF, you trade against the value of physical gold. 1 Gold ETF unit is = 1 gram of gold (99.5% pure). Note gold ETFs are dealt in cash and not in physical gold. The major advantage of Gold ETF is that you can trade it at the same price all over India.

Sovereign Gold Bonds (SGBs)

SGBs are government securities. Here you don’t buy and store physical gold. You just pay the issue price in cash and redeem it as well in cash, upon maturity. These bonds are issued by RBI.

The advantages of SGBs are that they remove the associated risks involved in holding & storing gold in its physical form. Moreover, investors can get its market value at the time of maturity. Finally, the bonds are kept in RBI’s ledgers or in demat form. This eliminates a lot of risks such as loss of scrip.

Q. How is gold a liquid asset?

Liquid asset refers to cash or any asset that can be easily converted into cash. Also when you sell a liquid asset their value bears a little impact.

Q. Why am I charged different gold rates in Mysore?

Gold rates can sometimes differ within a state. The difference can occur if you are buying from a local jeweler or big brand like Tanishq, PC Jewelrs, etc. Making charges also come into play when buying jewelry. Established brands usually charge more making fee. Also, such brands charge the gold rate prevalent in their headquarter-city. Meaning certain top brands will charge the gold rate of Delhi, Mumbai, etc. in Mysore. As this is where these companies bought their gold from.

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

Go with BIS Hallmarked gold coins or bullions when investing in gold. This is because you can get pure 24K gold in these categories.

Jewelry is not a good investment as it is not made from pure gold and involves making charges as well. Hence, sometimes people are not even able to recover the price of the gold jewelry when they sell it.

Q. What is Digital Gold?

When you buy digital gold you invest in actual gold. Instead of taking delivery of actual gold the bank or company safe guards your gold for you. It also trades it for you.

Q. Can I invest in Sovereign Gold Bond (SGB) in my son/daughter’s name?

Yes, you may invest in SGB through your kid’s accounts as minors can invest in SGBs.