Today’s Gold Rate in Uttar Pradesh (UP)

International gold prices affect gold price in Uttar Pradesh as well as India. The international price is decided on the basis of London Over-the-Counter (OTC) spot gold market trading and COMEX gold futures trading.

Gold Rate in Uttar Pradesh varies from other states because of excise duty, state taxes, and other local taxes.

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Certain factors play a big role in determining the gold rate in UP. These are:

International Gold Price – The prevailing gold rate in Uttar Pradesh is directly affected by the international gold price. Whenever international gold prices rise, the gold rate in Uttar Pradesh will increase too. 

Strength of American Currency – International Gold Price is demarcated in US Dollars and bears an inverse relationship to it. So, whenever the US dollar weakens the international gold rate and Gold Rate in Uttar Pradesh increases. 

Strength of Indian Currency – Most of the gold consumed in In India is imported. When Indian rupee weakens, less gold can be bought for the same money. This in turn will increase the gold rate in India.

Demand and Supply – Gold is a relatively scarce resource. Thus, whenever its demand fluctuates its price changes accordingly.

Monsoon – Over 50% of gold is bought by Indians residing in rural region which are still majorly dependent on agriculture. Now, a good harvest is dependent on a good monsoon. So whenever there is a good monsoon people buy more gold. When more gold is bought then the gold rate in Uttar Pradesh goes up.

Geopolitical Factors – Gold rates in UP or anywhere else go up in times of political turmoil. This is because people hoard up gold as it acts as a safe haven for their money.

Purity – Pure gold is much more valuable than impure gold. Therefore, from an investment point of view you should buy 24K gold articles.

Hallmark – BIS Hallmarked items are more expensive in comparison to non-hallmarked items. This is because Bureau of Indian Standards (BIS) marks the purity of gold on the article.

Making Charges – Ensure that you are charged a making fee that is reasonable. 

Weight of the Article – Ensure you are being charged for the actual weight of the gold article before paying for it.

Invoice – Invoices contain all the important information about your gold item. They can be especially useful if you have to go to a consumer court or sell the item.

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

The purity of gold article is marked in Karats. The differences between 22 and 24 Karat Gold article are:

• Pure gold is marked as 24K
• 22K Gold means the item contains 22 parts of pure gold and 2 parts of other metal. It is 91.67% pure

24 Karat Gold (24 K) is much more expensive than 22 Karat Gold (22 K). However, gold Jewelry is made from 22 K gold. 18 K gold is used in jewelry where diamonds or other gems need to be studded.

The various ways to invest in gold in Uttar Pradesh are:

Gold Coins & Bars

If you want to invest in physical gold, buy gold articles from a bank, e-retailers, jeweler, Stock Holding Corporation of India, MMTC (Metals and Minerals Trading Corporation of India) or NBFCs. Gold items start as light as 0.5 gram.

Gold Exchange Traded Fund (ETF)

ETF stands for Exchange Traded Fund. In Gold ETF, you get to trade in the actual value of gold. 1 Gold ETF unit is = 1 gram of gold (99.5% pure). Gold ETFs are dealt in only cash and not in physical gold. The main advantage of Gold ETF is that you get to trade it at the same price all over the country.

Sovereign Gold Bonds (SGBs)

SGBs are a form of government securities. You don’t buy and store physical gold. Instead, you just deal in cash. The bonds are issued by Reserve Bank of India on behalf of the government.

The advantages of SGBs are:

• You don’t have to bear the risk of storing gold
• You get your gold’s market value at the time of maturity
• The records are maintained by RBI’s or in demat form which eliminates risk of loss of scrip

Q. What are liquid assets?

Liquid asset includes all those categories that can be readily converted into cash, it includes cash as well. Moreover, liquid assets rarely lose value when they are sold.

Q. Can gold rates differ in the same State?

Yes, gold rates can differ within a state. The difference occurs when you are buying from a local jeweler or a big brand like Tanishq, PC Jeweler, etc. Making charges also come into play when buying jewelry which can differ in different cities of the state. Top brands usually charge more making fee. Also, such brands usually charge the gold rate prevalent in the city where their headquarters is situated.

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

If you have to invest in physical gold, go with BIS Hallmarked gold coins or bullions. This will ensure you get the gold that you are paying for.

We won’t suggest you buy jewelry to invest in gold as it is rarely made from pure gold and suffers from wastage during crafting. Making charges also reduce the potential profit that you might get from reselling it.

Q. What is Digital Gold?

Digital gold allows you to invest in actual gold without the hassle of storing it. Instead, the bank or company safe guards the gold for you. You can easily trade it whenever you want.

Q. Can my kids, who are minors, invest in SGB?

Yes, minors can invest in SGBs.