Today’s Gold Rate in Patna

Gold prices today in Patna and across India are influenced by different factors including economic, social and political conditions. The major contributing factors are discussed below-

• Changes in 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. But this lowers the demand for gold but has a little effect on gold rates.
• Relation between US Dollar and Rupee: 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 Coronavirus outbreak. Gold as a metal is seen as a safe investment option and during uncertainty; investors start to park their funds in gold as it assures safety.
• Inflation: When the 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.

Gold is a global asset and hence the base price in the United States is considered and depending upon the currency value of the respective country, the price of gold is decided. Basic gold prices are in terms of troy-ounce and get converted into grams. After using Dollar-Rupee conversion factor and adding import duty charges, the gold prices are decided.

In India, the IBJA ( Indian Bullion Jewellers Association) plays an important role in determining day to day gold rates in india. IBJA generally considers the prices that were quoted by the ten biggest gold dealers. Depending on their ‘buy’ and ‘sell’ quote the IBJA then decides the gold rate.

Before the implementation of GST 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 GST, VAT and excise duty have been replaced with 3% GST. To understand the impact of GST on gold in Patna and in the whole country, have a look at the table below:

If you wish to purchase gold jewellery or just getting started with investing in gold in Patna, there are certain aspects you should consider:

1. Price- 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 the 24KT gold price is Rs.43,280 /10 gram, then 22KT gold will be priced lesser i.e. 41,320.
2. Proper Bill- 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.
3. Weight- Note the weight of the item as the price will be completely depending upon the weight.
4. Hallmark- Make sure to buy gold with a hallmark certified mark on it. The hallmark ensures the purity content and the quality of the gold item.

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. You need to check the following components on the gold item purchased:

For Gold Jewellery

• BIS Mark
• Purity in Karat and fineness corresponding to different purity level
• Assaying and Hallmarking Centre’s Identification mark / number
• Jeweller’s Identification mark/number

For Gold Coins

• BIS Mark
• Karat
• Fineness

Note: You can find the above mentioned information on the item itself.

There are multiple ways of investing in gold. Below listed are some of the most popular options:

1. Gold Jewellery
   Investing in gold through jewellery is quite popular and is one of the most convenient out of all the options available.
2. Gold Coins / Bars
   You 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.), you can select a coin or bar as per your choice.
3. Gold Saving Schemes
   You can also invest in gold through gold saving schemes offered by Jewellery houses such as Tanishq, Malabar etc.  In this scheme, you 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.
4. Gold Accumulation Plan (Also known as Digital gold)
   Various wallets such as Paytm and GoldRush allow users to accumulate gold in digital or e-form. You can be assured of the safety of their deposited gold as these wallets are in association with MMTC-PAMP.
5. 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.

You can use your gold jewellery or gold article to get a loan in case of financial emergency or if you are looking for immediate liquidity. To get a loan against gold jewellery in Patna, you need 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 you. However you will be levied interest charges on the loan amount. 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.