Today’s Gold Rate in Punjab

Gold rate is decided by the London Bullion Association and IBA ((ICE Benchmark Administration) publishes the gold prices in US dollars twice in a day. The rate decided by them serves as a benchmark for bankers and bullion traders worldwide. In India, the Indian Bullion Jewellers Association (IBJA) takes the international price of the gold as a base and adds other applicable taxes. Later, an organization of bullion sellers decides at which rate the gold will be sold to retailers in Punjab.

With the introduction of the GST in July 2017, VAT and Excise duty had been replaced by 3% Tax on gold.

Investors can diversify the risk of a portfolio by including gold into it. Here are some of the gold investment options in Punjab:

Gold coins/ Bars: Available in quantities of 5/10/15/20/50 grams etc., one can buy gold coins/bars either through the online mode (Paytm, Freecharge, Amazon, etc.) or from a jeweller. If you are just getting started In gold investment, gold coins/bars can be your best bet. All gold coins sold in India are certified as per the BIS (Bureau of Indian Standards) hallmark.

Gold Accumulation Plan (Digital Gold): Paytm, Freecharge, Gold Rush and other mobile applications allow one to accumulate gold in the digital form. This option is better for those who don’t want to store gold in its physical form. You can make an investment with an amount as low as Re.1. However, the minimum amount varies from wallet to wallet. What’s more, one is not obligated to make any fixed or periodic payments, rather can invest as per their budget anytime from anywhere. If one wishes to redeem the deposited gold, they can do so in either cash or through coins.

Sovereign Gold Bonds: Offered by the government of India and issued by the RBI, it is one way to own gold in a paper form. Sovereign gold bonds are not available round the clock but are notified by the government from time to time. The minimum an individual can buy SGBs is 1 gram and maximum up to 4 kg. The tenure of the bond is 8 years with an exit option available after 5 years. Through this investment, one can earn assured interest. At the time of redemption or on maturity, interest and prevailing gold value will be credited to your account.

Investors should know the following aspects about gold investment:

• If you are buying gold coins/bars for investment purposes, it is suggested to go for 24KT gold coin. It is also advised to check the buyback terms from the jeweller you are buying gold coins from
• To ensure purity of the gold you have purchased, it is important to get a hallmark certificate from the buyer as it gives you an official recording of total gold composition in your jewellery
• Before buying gold, it is advised to check the price of gold per gram

Bureau of Indian Standards (BIS) is the governing body which certifies the purity of the gold and hence ensures that the gold used for making jewellery adheres to the international standards of purity. A consumer needs to check the following components on their gold jewellery to know whether it is hallmarked or not:

For gold jewellery,

1.   BIS Mark
2.   Purity in Karat and fineness classified as
   • 958-23 Carat
   • 916-22 Carat
   • 750-18 Carat
   • 585-14 Carat
3.   Assaying and Hallmarking Centre’s Identification mark/number
4.   Jeweller’s Identification mark/number

For Gold coins

• BIS Mark
• Karat
• Fineness

Note: From 15 Jan 2021, it will be mandatory for jewellers to sell only 14 carat, 18 carat, 22 carat hallmarked jewellery.

In case of a financial emergency, one can use their gold jewellery as collateral to get a gold loan in Punjab. There are a number of financial institutions in Punjab which offer gold loans at competitive interest rates. To avail gold loan, the borrower needs to approach the financial institution with their gold and complete the KYC. If everything is in order, the loan amount will be disbursed into your account and in turn the borrower needs to pay the interest annually or semi-annually. Until the loan amount is repaid, the bank will keep the deposited gold in a secured vault.