Today’s Gold Rate in Nashik

Gold prices in India and worldwide are derived from London Over-the-Counter (OTC) spot gold market trading and COMEX gold futures trading.

In India gold prices vary from place to place because of excise duties, state taxes, and other local taxes.

The applicable GST on Gold articles is 3%.

When you buy jewelry from a shop that gets someone else to craft it then the owner will pay 5% GST on the making charges. This amount will eventually be borne by you. However, it won’t be mentioned separately on the bill but covered under making charges. 

Consider Reading: GST on Gold

Top factors that affect gold prices in a state are:

International Gold Price – The biggest factor affecting gold rate in Nashik is the international Gold Rate. This happens because India is the biggest importer of gold in the world. Hence, when international prices of gold rise so will the gold rate in Nashik.

Strength of American Currency – International Gold value is in United States Dollar and bears an inverse relationship to its strength. Hence, when the Dollar loses strength the price of gold goes up.

Strength of Indian Currency – Since gold is imported, when the Rupee weakens gold prices will increase.

Demand and Supply – Demand and supply affects the gold rate in Nashik. As the supply of gold is low, whenever there is a rise in demand the price of gold will increase. Note during economic downturn, people start hoarding gold prices. This in turn increases the gold rate in Nashik.

Monsoon – Monsoon can also affect the gold rate in Nashik. This is because rural India makes up for 60% of India’s Gold consumption. And, whenever there is a good monsoon the crop yield increases. This increases the consumption of gold which, in turn, increases gold’s prices.

Geopolitical Factors – Gold, unlike other investment options appreciates during geopolitical turmoil, such as war. People invest in gold during these times because gold safeguards investor’s money.

Purity – The purer the gold the more costly it is. So, for investment purposes you should buy 24K gold coins, bullions, etc. Jewelry is not a good investment option as it is usually made of 22K (91.67% gold) or 18K (75% gold) gold.

Hallmark – BIS hallmarked jewelry certify that the purity claimed by the jeweler is correct. The gold article is tested in government facilities using X-Ray Fluorescence. Also, BIS Hallmarked gold articles are slightly expensive compared to non-hallmarked articles.

Making Charges – You should ensure that the jeweler is charging you a competitive crafting fee.

Weight of the Gold Article – Don’t just focus on the purity of the gold article. Ensure you are receiving the same amount of gold that you paid for.

Invoice – Invoice acts as a proof of purchase listing the amount of gold, purity and price. It will be useful when you sell the item.

Suggested Read: Hallmarked Gold, KDM Gold and 916 Gold – What is the Difference?

Gold’s purity is depicted in Karats. The difference between 22 and 24 Karat Gold item is

• 24K Gold is the pure gold, (99.99%)
• 22K Gold is an alloy, here gold forms only 91.67% of the article

As one can see 24 Karat Gold (24 K) is going to be more expensive than 22 Karat Gold (22 K).

You can invest in gold in the following ways:

Gold Coins & Bars

Investors can buy gold bullions, coins and bars from a jeweler, e-retailer, bank, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) and Non-Banking Financial Companies (NBFCs) like the Muthoot Group. The items are available in different weights and start from as low as 0.5 gram.

Gold Exchange Traded Fund (ETF)

Gold ETF represents physical gold on paper and over the internet. 1 Gold ETF unit is equal to 1 gram of gold (24 K). GOLD ETFs can be bought and sold at same price across India. They are not affected by local prices. Note that when you buy or sell gold ETFs you trade in money and not in physical gold.

Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds are securities issued by the Government of India and denominated in the weight of the gold. It is a good option for investors who want to invest in gold without having to physically hold it. Investors pay the issue price in cash. The bonds too are redeemed in cash upon maturity. It is issued by the Reserve Bank of India (RBI).

Investors get the market value of gold upon maturity and get periodical interest as well. The bonds are held in the RBI records or in demat form which eliminates risk of loss of the dealing.

Q. Which is the best gold ETF?

Top Gold ETFs that you may invest in are:

• Aditya Birla Sun Life Gold Fund
• Nippon India Gold Savings Fund
• SBI Gold Fund
• Kotak Gold Fund

Which one is the best Gold ETF or Gold Fund?
When you buy gold ETFs, you invest in physical gold of 99.5 per cent purity (24 K). Hence, gold ETF returns are parallel to prices of physical gold. You also require a Demat account.

A gold fund on the other hand, is open-ended fund that invests in gold ETFs. It does not require a demat account. This convenience is offset by annual expenses, around 1.5 %. It is 1% in case of gold ETFs.

Q. From where should I get Sovereign Gold Bonds?

SGBs can be bought from banks (both public & Private), post offices, Stock Holding Corporation of India Ltd. (SHCIL) and stock exchanges.

Q. What is the optimal time to buy Gold in Nashik?

You should buy gold whenever gold rate in Nashik takes a severe dip. When you buy gold cheap you can sell it at a higher rate when the market booms.

Q. Can I use SGBs as collateral for loans?

Yes, you may use SGBs as collateral for loans.