Today’s Gold Rate in Patna

Earlier one had to pay 1% as excise duty and 1.2% as VAT along with 10% custom duty on the price of gold. With the introduction of the Gold GST rate in Patna, VAT and excise duty have been replaced with 3% GST. To understand the impact of GST on gold in Patna, look at the table below:

Gold price today in Patna and across India are influenced by different factors including economic, social and political factors. Thus, one cannot point fluctuation in gold rates in Patna to one single event. Despite this, there are certain factors which impact gold price in Patna in huge way and they are:

Interest Rates: There exists a negative correlation between gold rates and interest rates. When banks raise interest rates, fixed income investments become more attractive for potential investors. Although this lowers the demand for gold but has a little effect on gold rates.

US dollar-Rupee equation: Gold and dollar share an inverse relationship. If the dollar weakens, the gold prices will increase and vice versa. It is because when the US dollar starts to lose its value, investors look for alternative safe investment options.

Geo-political factor: It is always seen that gold rates usually see an upsurge during geopolitical crises such as war and recent being Coronavirus outbreak. Gold as a metal is seen as a safe haven and during uncertainty; investors start to park their funds in gold as it assures safety.

Inflation: When inflation index increases in our country, the value of our currency depreciates. Having money in the form of gold becomes a tool to hedge against inflationary conditions during those times.

One must have noticed that gold rates in Patna are different if compared with other states. This is due to the following reasons:

• Transportation cost that is physical movement of gold from one place to another requires security and insurance which adds up in the value of gold
• Different states have different bullion associations that determine the gold price every morning due to this today gold rate in Patna is different than any other state.

There are multiple mediums one can get started with investment in gold and here are some of the options available:

Gold Jewellery: Investing in gold through jewellery is quite popular as it fulfills a dual purpose- using the jewellery as an ornament and assurance of gold price to be appreciated. Before investing in gold jewellery, buyers should know that the seller will deduct making charges and GST before quoting the final value to you.

Gold coins/bars: Those who are just getting started with investment in gold in Patna, gold coins or bars can be their best bet. One can buy gold coins/gold bars from jewellers, banks and e-commerce websites such as Paytm, Amazon, etc. Available in different denominations (1gm, 2 gm, 5gm, 10 gm, etc.), one can select coin or bar as per their choice. It is recommended to go for 24KT with 999.5 fineness when buying gold coins/bar specifically for investment purpose.

Gold Saving Schemes: One can also invest in gold through gold saving schemes offered by Jewellery houses such as Tanishq, Malabar, Jos Alukkas. In this scheme, customers need to make a fixed deposit every month for a selected tenure and after the end of the tenure, jeweller will add last month’s installment to your accumulated amount. This allows customers to buy gold at a value equivalent to the total money deposited, including a bonus amount.

Gold Accumulation Plan (Also known as Digital gold): Various wallets such as Paytm and GoldRush allow customers to accumulate gold in digital or e-form. One can be assured of the safety of their deposited gold as these wallets are in association with MMTC-PAMP. Customers can start investing through these platforms from as little as Rs. 1; although the minimum amount varies from wallet to wallet. Depending on the amount, corresponding gram of gold will be added to your wallet. One can either sell their accumulated gold when its value appreciates or can buy the coins

Sovereign Gold Bonds: These bonds are offered by RBI and issued by the government of India. It is one of the ways to hold gold in paper form which means the investor will not get physical gold at the time of maturity or redemption. The tenor of these bonds is eight years with the exit option available after 5 years. The minimum an individual can buy gold is 1 gram and maximum up to 4 grams. Unlike gold accumulation plan where one doesn’t earn any interest, one can earn fixed interest (Currently 2.50 percent) on SGBs. However, one should know these bonds are not available all around the year but are notified by the government.

If you are out buying gold jewellery or just getting started with investing in gold in patna, there are certain aspects you should know and they are:

• If you are buying gold jewellery for investment purpose, make sure you understand the exchange policies the jeweller offers
• Price of gold quoted in the newspaper is 24KT. At the time of buying gold, make sure you are charged for the purity of gold you have bought. For instance, If 24KT gold price is Rs.43,280 /10 gram, then 22KT gold will be priced lesser i.e. 41,320
• Make sure there is transparency in the breakup of the bill with important details such as karat, weight in grams and price of the ornament/ gold coin you have purchased given
• In case of studded gold jewellery, the value of gold and weight of gemstones/diamonds will be calculated separately and same should be reflected in the bill
• If you are investing in gold through gold saving schemes offered by jewellery, stick to reputed jewellers and ensure all the receipts and documents are in place

It is very important to check the purity of the gold you have bought. Hallmarking is done by the BIS to certify the purity of gold used in the making of gold jewellery/coin. Hallmark sign ensures the gold used adheres to the international standards of purity. Buyers need to check the following components on the jewellery/coin:

For Gold Jewellery

• BIS Mark
• Purity in Karat and fineness corresponding to different purity level
  • 958-23 Carat
  • 916-22 Carat
  • 750-18 Carat
  • 585-14 Carat
• Assaying and Hallmarking Centre’s Identification mark/number
• Jeweller’s Identification mark/number

For Gold Coins

• BIS Mark
• Karat
• Fineness

Note:

Above-mentioned details are engraved on the jewellery or coin

One can use their gold jewellery or gold article to get a loan in case of financial emergency or if one is looking for immediate liquidity. To get a loan against gold jewellery in Patna, one needs to approach the nearest bank or gold financing company such as Muthoot and Manappuram. Based on the purity, weight of the gold, tenure of the gold loan, loan amount will be given to the customer. The borrower needs to pay a set rate of interest on the loan annually. The minimum and maximum amount of loan to be dispersed, loan tenure and rate of interest varies from bank to bank. Until the loan amount is paid, your gold will be kept in a secured vault.