Today’s Gold Rate in Telangana

Gold Rate in Telangana and other parts of India is generally affected by its international value and other factors. International value is derived from London Over-the-Counter (OTC) spot gold market trading and COMEX gold futures trading.

In India, gold prices vary from state to state because of excise duty, state taxes, and other local taxes.

If you buy Gold coin, bullion or jewelry then the applicable GST rate is 3%. 

Note: if you are purchasing jewelry and the jeweler has outsourced the crafting to a third party. Then the jeweler will pay 5% GST on the making charges that they are paying to this third party. In the end, you will have to bear this GST too. However, this GST amount won’t be shown separately on the bill. The amount will be covered under the jewelry making charges. 

Detailed Information on Goods & Service Tax applicable on Gold can be found here.

International Gold Price – This is perhaps the biggest contributor to price of Gold in India. Since India imports almost all of the gold that it requires. Therefore, if international gold prices rise, so will the price of gold. 

Strength of American Currency – International Gold value is demarcated by United States Dollar. Hence, whenever the dollar depreciates the gold prices appreciate. 

Strength of Indian Currency – As gold is imported from abroad. The gold that can be imported for the same amount reduces when the value of Indian rupee falls. This will lead to scarcity of gold resulting in increased gold prices.

Demand and Supply – Whenever the demand of gold reduces the prices go down. Also, during a recession gold prices go up as people start hoarding it.

Monsoon – Most of the gold is bought in rural India, about 60%. A good monsoon leads to an increase in crop yield which leads to increased demand of gold. The increased demand in turn increases the price of gold.

Geopolitical Factors – Gold rates unlike other stocks and investments go up in times of geopolitical turmoil. This happens because gold provides a safe haven for people’s savings.

Purity – Gold is usually mixed with cheaper metals, nickel, copper, zinc, etc., to give it strength. Therefore, the purer the gold article is the higher will be its value.

Hallmark – BIS hallmarked gold articles are pricier as compared to non-imprinted gold articles. Thus, if there are two gold articles of identical weight and purity. The one with the hallmark will be more expensive.

Making Charges – Ensure that the jeweler is charging you a competitive jewelry making fee.

Weight of the Article – Ensure you are charged for the exact weight of the article you bought.

Invoice – Keep your invoices safe and secure it will be required when you sell the gold article.

Suggested Read: Digital Gold – A Smart Way to Invest in Gold

Gold’s purity is marked in Karat. The difference between 22 and 24 Karat Gold articles are:

• The purest form of gold is marked as 24K
• 22K Gold is a mixture of gold & other metal

As we can see, 24 Karat Gold (24 K) will always be more expensive than 22 Karat Gold (22 K).

The various ways to invest in gold are:

Gold Coins & Bars

Gold articles such as coins or bars can be bought from banks, e-retailers, jeweler, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) and other NBFCs like the Muthoot Group. The weight of gold articles can start from as low as 0.5 gram.

Gold Exchange Traded Fund (ETF)

ETF stands for Exchange Traded Fund. Physical gold is represented on paper or electronically via ETF. 1 Gold ETF unit is = 1 gram of gold (99.5% pure). Note, when one buys or sells gold ETF he/she deals in money & not in physical gold. Gold ETF can be bought and sold at one price anywhere in India.

Sovereign Gold Bonds (SGBs)

SGBs are a form of government securities. They are denominated in weight of gold (grams). People who do not want physical gold can get SGB. Investors pay the issue price in cash. The bond can be redeemed against cash upon maturity. The Bond is issued by RBI on behalf of the Government of India.

SGBs remove the risks associated with holding gold in its physical form. Also, investors are assured of its market value at the time of maturity. The bonds are registered in the books of RBI or in demat form. This too eliminates a lot of risks on customer’s end.

Q. Is gold a good investment?

Gold is a relatively safe investment and as a safe investment it rarely gives high yield. However, during recession it can safeguard your savings as gold’s value usually appreciate during recession. Moreover, when inflation occurs people can invest in gold to reduce risk exposure.

Q. Why am I charged different gold rates in Telangana?

Gold rates can differ from jeweler to jeweler. Also, big jewelers, PC Jewelers, Tanishq etc. charge the gold rate that is prevalent in their headquarter-city. This is why you find different gold rates in the same city.

Q. Which is better as a gold investment, Jewelry or Coin?

Gold coins, bullions or bricks are better option when it comes to gold investments. This is because you can get purest 24K gold in these categories. Jewelry is usually made from 22K gold or lower and many times people are unable to recover the buying price of the jewelry itself.

Q. What is Digital Gold?

Digital gold is a form of investment backed by actual gold. Here you don’t physically get your gold when you purchase it. The bank or company safe guards your gold on your behalf.

Q. Can a minor invest in SGB?

Yes, a minor can invest in SGB.