Today’s Gold Rate in Surat

With the introduction of the GST in July 2017, other taxes which used to be added to the total cost of gold had been replaced by 3% goods and services tax on gold.

Gold price in Surat is influenced by international factors. London Bullion Market Association manages the London Good Delivery List which sets the gold price by taking various factors into consideration. IBA (ICE Benchmark Administration) publishes the LBMA gold price in US dollars twice daily at 10:30 AM and 3:00 PM UK Time which serves as a benchmark price for gold producers, investors and central banks worldwide.

In India, the Indian Bullion Jewellers Association (IBJA) takes the international price of the gold as a base and adds applicable taxes as per the state. Afterwards, an organization of bullion dealers in Gujarat decides at which rate the gold will be given to the retailers.

Here are the gold investment options in Surat that one can choose:

Sovereign Gold Bonds: Backed by the government and notified by the RBI, these bonds are linked to 24K gold rate in Surat. An Indian resident can invest in these bonds from as low as 1 gram with maximum up to 4 kg. Their price is based on the average of the closing gold price of 999 purity published by the Indian bullion and Jewellers Association (IBJA) for the preceding 3 working days

Gold ETFs (Exchange traded funds): Traded on exchanges, you receive units (One gold ETF unit represents 1 gram of gold) which represents physical gold but minus the hassle that comes with keeping the latter. Their prices are linked to prevailing gold rate as it invests in physical gold of 99.5% purity.

Digital Gold: Also known as gold accumulation plan where you don’t invest in gold but rather accumulate it in e-form. You can do the transaction through various platforms such as Paytm, Freecharge, gold rush with an amount as low as Rs.1. Moreover, here one is not obligated to make any fixed or periodic payments, rather can invest anytime as per their budget.

Before you go ahead with any of the investment options mentioned above, there are certain aspects which you should know and are briefly given in the table below

Gold is considered an effective portfolio diversifier. Although there is no direct answer to this question but as per experts, it is recommended to allocate a small portion of your savings to gold-between 5%-10% of your entire investment portfolio, through gold mutual funds, gold ETF or Sovereign gold bonds.

It is important to check the purity of the gold articles you buy to ensure you get the right value if you are to sell it in the future. To do the same, one needs to check the following components on their gold jewellery or gold coin:

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

For Gold coins

• BIS Mark
• Karat
• Fineness

Note:

• Above-mentioned details are engraved on the jewellery
• 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 or you are looking for funds to meet short term credit needs, you can use gold to avail gold loan in Surat. There are a number of banks and NBFCs (such as Muthoot, Manappuram, etc) in Surat which offer gold loan facilities. To avail gold loan, you need to walk into any of their branch offices with the gold you are ready to pledge and fill the KYC form and complete required formality. The gold loan amount will be sanctioned based on the purity of the gold in your gold ornaments.

If everything is in order, the loan amount will be disbursed and in turn the borrower needs to pay gold loan EMI/entire principal amount with interest (if s/he has chosen a bullet repayment option) at the end of the gold loan tenor. Until the loan amount is repaid, the bank will keep the deposited gold in a secured vault.