Today’s Gold Rate in Vadodara

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Gold rate in Vadodara fluctuates from time to time and some of the reasons behind it are given below:

• Demand & Supply: Demand of Gold in the market against its supply is the major cause of fluctuations. Both international & Indian markets have an impact as well as local demand affects the gold rate in Vadodara. For example, during the wedding season the gold prices usually see a shift upwards in its rates. The consumption rate greatly decides the price rate of gold
• Inflation: Inflation is one of the major causes which affects gold prices. When inflation is high, money value goes down. So the people tend to hold money in the form of gold and high demand pushes up the prices. So if inflation has a major impact on this city, the gold rate in Vadodara will be impacted too
• Interest Rates: Interest Rates share an inverse relationship with Gold. When rates of interest are high, people tend  to move towards fixed deposits. This leads to a fall in the demand for gold. Similarly, incase the banks in Vadodara are offering lower returns the demand for gold investment and thereby the gold rate in Vadodara may hike up
• Currency Fluctuations: The value of Indian currency against the US Dollar also determines the gold rates in the country. In the international market, gold is traded in US Dollar and so if Indian Rupee value depreciates then gold imports and thereby the gold market in the country gets costlier. India being the largest importer of gold, gets affected by any change in rupee dollar equation. It also shares a negative relation with the dollar which dominates the gold market and hence any weakening of the US Dollar causes a hike of gold price
• Geopolitical Factors: Several geopolitical factors such as wars or a pandemic like COVID-19 have an effect on the gold prices. During any crisis, usually when all other assets are falling (like markets may be down, stocks underperforming, real estate suffering, funds not giving returns, etc.) then gold prices rise. It is so because people consider gold as a safe haven for parking their money and invest in gold even when the economy suffers. If Vadodara experiences any such turbulence due to any of the these causes, the gold rate in Vadodara are bound to see a fluctuation

You can purchase the yellow metal in various ways and forms now as mentioned below:

• Physical Gold: The oldest form where you purchase certain grams of gold as coins or bars or jewelleries. It is considered to be one traditional form of investment as people used to save up money, purchase gold to keep it as a backup for financial emergencies by selling it off. Investors invest in physical gold with an opinion to sell it at higher price (as gold price soars up over the years) especially when there’s some sort of economic exigency. Gold prices have only soared up with increasing demand so as to sell it at higher prices especially in times of great crisis
• Digital Gold: Gold that can be purchased online through service providing/gold selling apps and websites where you invest a certain amount of money and equivalent quantity of gold is registered in your name which you can demand anytime and it will be delivered to you as explained earlier. Vendors/issuers will offer the product and the distributors will distribute to the investors. You need to register yourself with the online distribution platform with all KYC details. You can log in to these accounts, check prices and buy gold. It will be placed in your vault post purchasing. Similarly, you can check the price, sell off and the gold will be removed from the vault. Alternatively you can demand delivery and will be sent to your address provided you pay the cost of dispatch. You can exchange it for jewellery at an approved jewellery store
• Gold Exchange Traded Funds/Gold funds: ETFs are pooled investments that track an underlying index and are traded on stock exchange unlike regular MFs. ETFs that trade in gold are Gold ETFs. They are considered to be economical investments in comparison to physical gold. It does not incur making charges neither it charges Entry Load, Exit Load, etc., however, you need a demat account to trade in these. ETFs invest 90-100% in physical gold sourced from RBI approved banks.

Digital gold is sold by MMTC-PAMP India Private Ltd. and Safegold which is further distributed through the digital platforms of banks, broking and fintech companies and others appointed by the vendors. For instance, SafeGold is distributed through ICICI Bank and others. Similarly, MMTC-PAMP offers through Paytm, Stock Holding Corp. of India Ltd. and so. The gold you buy will be secured against physical gold of 24K and 0.999 fineness which you can redeem anytime or when the gold price in Vadodara appreciates.

It is better to go for the Digital Gold than Physical Gold because of the following reasons:

• Flexibility of Investment Amount: Let’s consider if the price of 1 gram of 24 karat gold is Rs. 4,835 (assumed as per the trending gold rate in Vadodara) then it is almost impossible for you to buy physical gold for ₹10 but you can do this when you buy digital gold. You can keep investing smaller amounts and accumulating more amount of digital gold
• Transparent Transactions with Real Time Pricing: With digital gold, you can avoid the confusion of changing rates as websites/apps offering digital gold are linked to real time market prices. This excludes GST but is inclusive of duty charges. Also these service providers are closely regulated and are registered ones so your transactions are safe and transparent. You can also compare the gold rate in Vadodara offered by these sites and those by the local store owners
• Quality Assurance of Gold: Unlike many gold dealers, who may cheat over purity of gold as whether it is 24K or 22K or charge you more in the name of making charges, the digital gold assures the purity and quality of the gold you purchase
• Safe Storage: Digital gold has a safe storage. It is held in safe vaults (for 5 years in MMTC and 2 years in Safe Gold). Unlike physical gold where it is held by the issuer till you get delivered or sell it off. Digital gold is held under your name and its in digital form on paper till you exchange it or receive it
• Receive Digital Gold in form of Coins/Bars: Once you plan to get the gold/cash equivalent of your accumulated digital gold, it is delivered to you at your doorstep. It is in the form of bars or coins in a high tamper proof packing

One needs to pay 3% GST on gold including the making charges. If you sell physical gold, it will be taxed depending on the duration you have held it since your purchase. If you sell gold within 3 years of your purchase, it is regarded as Short Term Capital Gains (STCG) and taxed alike.If you hold it for more than 3 years/36 months then you will pay tax on Long Term Capital Gains (LTCG) which is 20% with indexation benefits.

One can take loans from banks by offering gold coins/bars/jewels in exchange. This is known as loan against gold or gold loan. Anyone who has the gold can for Gold Loan unlike other loans where certain criteria fulfillment is required. The loan offered is a certain percentage of the value of the gold as per the current rates based on its weight and purity. You can repay the loan through installments and reclaim your gold.