Today’s Gold Rate in Pune

Over the last two decades, Pune has witnessed a tremendous growth and has transformed from an educational hub into an IT hub into a truly cosmopolitan city. Pune now boasts of its modern infrastructure, numerous job opportunities and an extravagant crowd. Having a vibrant economy and a population comprised of wise professionals, the city has witnessed considerable growth in the volume of gold investments. Despite the fact that gold rate in Pune is higher than many other Indian cities, people are buying gold because it is safe and ensures good returns. And in a city like Pune, where there is good flow of money, a spurt in gold investment did not come as a surprise. Today’s gold rate in Pune is reaching sky-high limits given the high demand from people. Let us learn more about why people living in Pune love investing their money in the yellow metal.

Trend of Gold Rate in Pune for last 10 days

Why Gold is a preferred investment option in Pune?

Gold has always been the darling of middle class Indians and also a prestige symbol in the society. But the growth of gold investment in Pune is due to its rising rates and promising returns. Given below are a few reasons why it is preferred by the people of Pune-

• Traditional and Religious Value- Gold has been used in various traditional ceremonies from as long as we remember. This is still one of the most popular reasons why people put their money on gold.
• Hedge against Inflation- In times of inflation, when the cost of living increases gold prices tend to rise. Historical data shows that in times of high-inflation when stock market plunges, gold prices soar.
• Increased Demand, Constrained Supply- The mining of gold has been decreasing since the year 2000 and the gold that circulates in the market is mostly bullion taken out from the vaults of global central banks which has also reduced after 2008. But the increase in disposable income has led to an increase in demand for gold. And as a general rule, when the demand is greater than supply commodity, gold prices soar.
• Investment Portfolio Diversification- Avid investors prefer to keep their portfolio diversified. Gold historically has a negative correlation to stocks and other popular financial instruments. Hence it makes sense for them to invest in gold in order to neutralize/reduce the risk involved.

What are the major reasons to invest in Gold in Pune?

The most important reason which attracts everyone to invest in gold is the fact that gold is a precious metal and a good investment option. Gold can be sold whenever required at the current price of the metal. Further, the price of gold rises with inflation. However, there can be various other reasons that drive the people of Pune to invest in gold:

• Gold maintains its value through the years. People look at it as a precious way to preserve wealth and pass it on from one generation to another.
• Gold holds a good price even when a reserve currency loses value, making it a safe haven in times of economic crisis. We generally see the Gold rates in Pune rise when the reserve currency or the US dollars falls.
• Gold is an excellent hedge against inflation as its value rises with the rise in the standards of living.
• Purchasing power of Gold soars during deflation when the prices decrease and business activities slow down. At this point, when the economy gets burdened with debt, gold rises while other prices drop.
• Increased wealth of emerging economies has led to a boost in the demand for gold. In most countries, especially those with rich cultural history like India, gold is intertwined into its roots and traditions. Indians and Chinese buy a lot of gold especially during festivities and auspicious events as a traditional form of saving, with a varied approach to gold accumulation plans.

How to invest in Gold in Pune?

Gold can be bought in two forms, either 22 Karat or 24 Karat form of gold, which also determines the rates depending on the purity of gold that forms an item. Generally, 22 karat is about 92% pure gold, making it less expensive and 24 karat is 99.99%, making it the purest form of gold and the most expensive too. Gold as an investment in Pune is often considered very safe and there is always a demand for it. There are several gold investment options in Pune, depending on the amount at hand and their needs:

• Gold jewellery – People of Pune love to wear traditional gold jewellery. Gold jewellery is an asset which is bought by Indian women and is passed on to their younger generations. This jewellery can also be exchanged for cash and yield returns as per the purity of the metal and the current gold rate in Pune, unlike gold bars which cannot be sold in retail.
• Gold bullions – Gold bullion coins and bars are good investment option if you wish to store gold for future use. Gold coins need less investment as their weights usually vary between 1g to 10g whereas gold bullion bars is a better option if you are looking to invest a good amount of money.
• Gold Exchange Traded Funds – If you do not wish to invest in physical form then gold ETF is a smart choice to make. A single unit of Exchange-traded Funds yields a value equal to 1 gram of gold.
• Gold Mutual Funds – Gold mutual funds are open-ended funds that invest in gold ETFs and are therefore are also known as Funds of Funds (FoFs). In gold mutual funds, investors can invest any amount of money any time. Moreover, investment in gold mutual funds is quite easy as it does not require a demat account. Those who cannot invest lumpsum amount in these mutual funds can use the SIP method of investment in this monthly a fixed amount will be deducted for their bank accounts and invested in a mutual funds scheme.
• Digital Gold: Digital Gold is a new gold-buying option in the market. It allows investors to buy and sell gold at live market prices. Anyone can buy and sell 24 karat gold anytime in fractions at an amount as low as Rs. 100. Those who don’t want to hold gold in a dematerialised form can get it delivered in the form of 24 karat gold coins 24 hours after they have made the purchase.
• Sovereign Gold Bonds: Sovereign Gold Bonds (SGBs) are government bonds initiated in the year 2015. Its launch was aimed to make gold investments more investor-friendly. Its underlying asset is physical gold; and therefore is issued in grams. However, they are also available in demat or paper form. The price of these bonds is decided on the basis of simple average of the closing rate of 999 pure gold published by the India Bullion and Jewellers Association Limited.

18 Karat v/s 22 Karat v/s 24 Karat Gold

When buying gold, you will come across the term ‘Karat’ which is used to measure the purity of gold. The higher the karat, the purer is the gold.

• 24 karat: This is the purest form of gold. It contains 100 percent gold content without the traces of other metals in it. It has lesser density and hence is soft and pliable.
• 22 karat: 22 karat gold means that it has 22 parts gold and 2 parts other metals like silver, zinc, nickel, etc.
• 18 Karat: 18 karat gold has 75 percent gold and 25 percent other metals.

Why 24 karat gold is not suitable for making gold jewellery?

24 karat gold is not suitable for making jewellery; 22 karat gold is commonly used in jewellery making but not for those heavily studded with diamonds or other stones.

KDM or Hallmark 916 Karat Gold

Other important terms related to gold investment are KDM, 916 and Hallmarked. Let’s learn about them in detail.

• Hallmark– Bureau of Indian Standards (BIS) awards Hallmarks on gold jewellery. Hallmark on gold means that it is certified as pure as per international standards of purity.
• 916– 916 gold is 22 karat gold; 916 gold means that there is 91.6g of gold in a 100g alloy. 958 is 23 karat and 750 is 18 karat gold.
• KDM– It is an alloy of 92% Gold and 8% Cadmium. Old gold jewellery used different solder material to carve designs. Due to a different melting point, it was hard to separate the solder material from gold which reduced its purity when melted. Cadmium has a lower melting point than gold and maintains the purity of the base jewellery even when melted.

Must Read : Why You Should Buy Sovereign Gold Bonds Over Physical Gold

GST Impact on Gold Rate in Pune

Under the new Goods and Service Tax (GST) regime, gold jewellery will be taxed at flat 3% which is higher than the earlier excise of 1% and 1.5% VAT but lower than what people anticipated. This 3% GST is to be borne by the end consumer. In addition to this, there will be 5% GST on processing charges and customs duty will continue to be 10%. GST will lead to the lowering of cost gap between organized and unorganized players; large players of the gold market will be the actual beneficiaries of this change. This move will also bring transparency in the market. Gold rate today in Pune is a factor of global market trends and these changes in tax norms.

Also Check : Know How Jewellers Quote Gold Jewellery Rates

Factors Affecting Gold Rates in Pune

Following are the factors that influence today’s gold rate in Pune –

• Inflation– Gold is a steady investment and is used as a hedge against inflation. Hence, in times of sharp inflation, the demand for gold shoots up leading to an increase in its price.
• Global Gold Reserves– Central banks of major countries hold cash and gold in their reserves. So when they are holding gold and procuring more, the prices shoot up and vice versa.
• Global Price Changes– India is the largest importer of gold so when the prices of this yellow metal increase or decrease in the global market, it directly impacts its rates in the country.
• Interest Rates of Financial Products– When the interest rates of financial products increase, people tend to sell the gold in order to acquire cash which increases the metal’s supply in the market. And as the general rule goes, prices fall when supply increases.
• Festivals Trends– Gold is an important asset to buy during festivals or the marriage season as it is considered auspicious. This change in jewellery market trends also has an impact on the price of gold in the country.

Why today’s gold rate in Pune is different from its yesterday’s gold rate?

Have you ever tracked gold rate in Pune or Delhi? Tracking gold rate in Mumbai or any other Indian state will also be enough to help you learn that gold rates are fluctuating as they depend on various factors such as inflation, geopolitical situations, supply and demand, etc. They change every day and therefore, today’s gold rate is different from yesterday’s gold rate. The main reason why a lot of experienced gold investors in India advice to follow gold rates every day is because it helps them understand gold rate trend in Pune. Besides following gold rate following news related to gold and global events will also help in making the right decisions pertaining to gold investments. If you are confused how global events can affect gold rates in Pune or gold rates in Bangalore, read these factors that affect gold rates in India.

• Demand and supply: As with any product or service in the market, gold prices in India too are dependent on the demand and supply of gold. When the production of gold is more than its supply, then the gold prices in Pune drop. And when the demand for gold is more than its production, the gold prices in Pune and other states in India increase.
• Market volatility: Most people invest in gold to safeguard themselves against market’s uncertainties and volatility. This is because when other assets such as stocks are losing value, gold prices rise. Therefore, experienced investors keep at least 10 percent gold in their investment portfolio. Doing so not only helps in diversifying portfolio but also in reducing the effects of market.
• Interest rates: As per some market experts, the relationship between gold and interest rates is negative. When interest rates increase, investors flock towards fixed-income investments such as fixed deposit, etc., provided the returns accrued from fixed-income investments are more than or equal to the returns accrued from gold.
• Rupee-dollar equation: Currency equation is yet another reason for gold rates in India to fluctuate. Gold in India is largely imported and therefore if the rupee weakens in comparison with dollar, the gold prices will more likely increase in terms of Indian rupees. So a reducing rupee may tarnish the demand of gold in the country. However remember variation in the rupee-dollar rates has no effect on gold prices dominated in dollars.
• Geo-political reasons: Geo-political events have an impact not only on gold prices in Pune but also on gold prices in Mumbai and other Indian states. Usually gold does well during any geo-political disturbance. The latest crisis over Korea’s nuclear capability increased the prospects of the yellow metal. Crisis such as wars or even the speculation of it can elevate gold rates in India. Such events have a negative impact on most market assets but have an inverse effect on the yellow metal as investors park their money here to hedge against heavy losses.

Things to keep in mind when buying gold jewellery in Pune

Before you buy gold jewellery, there are a few things that you must keep in mind to get the full value of your purchase.

• Purity Certification: Before you purchase gold jewellery ensure it is BIS certified. BIS certification ensures that the gold article you are paying for is worth it. A BIS certified gold jewellery includes BIS logo, Purity/fineness Mark, Assaying and Hallmarking Centre’s Mark, Year of Marking and Jewellers Identification Mark.
• Making Charges: When buying gold jewellery, knowing gold prices in Pune is as important as knowing making charges. Making charges are basically the cost of making gold jewellery. These charges are dependent on various factors such as the design of the gold jewellery, gold jewellery brand or jeweller from which you are purchasing gold, etc. These charges are quite expensive and usually vary from 8% to 25%. If you want to cut on the making charges, compare the charges from various jewellers and then buy gold. Also, avoid buying gold jewellery with intricate designs as complex designs will cost you more.
• Weight: The gold jewellery price is directly proportional to its weight. So if other stones or gems are included in the design, the weight of the gold jewellery would increase. So try and avoid buying gold jewellery with stones and gems as they will cost you more and will not even have any return value. If you still want to go with the studded gold jewellery designs, ensure that your jewellery is properly weighed so that you are not charged at gold rates for the additional weight of other gems.
• Invoice: To save tax a lot of people buy gold jewellery without a proper invoice. If you too buy gold jewellery the same way, avoid it the next time. Buying gold jewellery without an invoice can put you in a bigger loss as at such bill your jeweller might give you gold of a lower quality. Having an invoice will also help at the time of exchanging your gold jewellery. Moreover, it includes the breakup of the gold purchased, which ensures transparency between the buyer and the seller.