Today’s Gold Rate in Trichy

International Gold Prices affect gold Rate in Tiruchirappalli and in other parts of India. It is derived from COMEX gold futures trading & London Over-the-Counter (OTC) spot gold market trading.

Gold rate in Trichy is also affected by excise duties, state taxes, and other applicable local taxes.

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Customers who plan to buy gold articles will be charged 3% GST.

Gold jewelers who outsource crafting of jewelry are charged 5% GST. This amount will eventually be borne by the end user. However, this tax won’t be marked separately on customer’s bill of purchase. Rather, it will be incorporated in the making charge amount.

Factors that decide gold prices in Tiruchirappalli:

International Gold Price – International Gold Rate directly influences the Gold Rate in Trichy as well as in other parts of India. This is because India imports gold from abroad. If the international prices increase then naturally prices of gold in India will increase including that in Trichy. 

American Currency – The International Gold price is in American Dollars. Now if the US Dollar weakens then the purchasing power of other countries will increase. This, in turn, will increase the International Gold Rate. 

Indian Currency – A strong Indian rupee will be able to buy more gold which in turn lowers the gold rate in India. The opposite holds true as well. A weak Indian Rupee won’t buy much gold resulting in increased Gold Rate in Trichy.

Demand and Supply – Demand and supply of gold affects the gold rate in Trichy. Whenever the supply of gold decreases or demand increases its prices will increase. This can be noticed during recession, or around festive season when gold’s demand increases.

Monsoon – Monsoon affects the gold rate in Trichy. Rural India makes up for 60% of India’s gold consumption. Farmers buy more gold after a good harvest which in turn is affected by monsoon. An uptick in demand increases gold’s rate in Trichy.

Geopolitical Factors – They also affect gold prices. During geopolitical turmoil, such as war people invest in gold as it provides a safe haven for people’s savings.

Purity – Gold’s purity is marked in Karats (K) 24 K being the purest form. Therefore, buy 24 K gold coins, bullions, etc. if you plan to invest in it. However, we suggest you don’t buy jewelry for investment purposes as it is made from 22K gold or lower. Making charges and wastage reduce the potential profit that you might gain at the time of sale.

Hallmark – Government of India, through certified labs, verifies the purity of gold articles. These BIS hallmarked gold articles are more expensive compared to non-hallmarked articles.

Making Charges – Ensure that the jeweler is not charging you an exorbitant making fee. 

Weight of the Gold Article – You must ensure that the price of gold article matches the weight as well. Sometimes, shopkeepers charge you for more weight.

Invoice – Invoices are proofs of purchase that list important information. This will ensure transparency and provide you assurance if something goes wrong.

Suggested Read: Hallmarked Gold, KDM Gold and 916 Gold – What is the Difference?

 

As previously discussed, gold’s purity is shown in Karats. The difference between 22 Karat and 24 Karat Gold article is:

• 24K Gold contains 99.99% gold
• 22K Gold contains 91.67% gold. The rest of it is another metal

24 Karat Gold (24 K) is more expensive than 22 Karat Gold (22 K).

You can invest in gold in the following ways:

Gold Coins & Bars

You can buy gold bullions, coins and bars from a jeweler, e-retailer, bank, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) and Non-Banking Financial Companies (NBFCs). It is really easy to invest in gold as the minimum weight of physical gold that can be bought is as low as 0.5 gram. 

Gold Exchange Traded Fund (ETF)

Through Gold ETF, you can trade physical gold through paper or on the internet. 1 Gold ETF unit is equivalent to 1 gram of 24 K gold. Gold ETFs are traded in money and not in actual gold making it a safer option when it comes to investing in Gold. Another advantage gold ETFs hold over physical gold is that you can buy or sell gold at same price across India.

Sovereign Gold Bonds (SGBs)

One way Government of India provides securities to people is the Sovereign Gold Bonds (SGBs). These are denominated in the weight of the gold. SGBs allow customers to invest in gold without having to store it. Here, investors deal in cash alone. Reserve Bank of India issues SGBs.

Investors will get the market value of gold upon maturity of the security. They get periodical interest on the investment as well. The records of bonds are maintained by RBI or in demat form. This eliminates the risk of scrip loss.

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

Q. Which is the best gold ETF?

There are many Gold ETFs present in the market that one may invest in. Some of the top performing Gold ETFs are: Aditya Birla Sun Life Gold Fund, SBI Gold Fund, Nippon India Gold Savings Fund, Kotak Gold Fund.

Q. Which one is the better Gold ETF or Gold Fund?

Gold ETFs are dealt in the value of physical gold, which is 99.5 % pure. For this reason, gold ETFs returns are equal to prices of physical gold. To deal in Gold ETFs you require a demat account.

Gold funds, on the other hand, are open-ended funds that invest in gold ETFs. They don’t require a demat account. This convenience might not be worthwhile for some individuals because Gold funds annual charges are about 1.5 %. It is just 1% for gold ETFs.

Q. Where can I buy SGBs?

SGBs can be bought from banks (both public, private, foreign), post offices, stock exchanges and Stock Holding Corporation of India Ltd. (SHCIL).

Q. What is the optimal time to buy Gold in Trichy?

Gold, like any other investment, should be purchased when it is in a slump. That is when its value has dropped significantly.

Q. Are SGBs allowed to be used as collateral for Home loan?

Yes, SGBs can be used as collateral for any secured loan and not just Home loan.