Why does the gold rate vary all over India?

gold rate

Gold has a place fixed in the hearts of we Indians. Talking about the facts then India is the second-largest consumer of gold including the capital Delhi. Delhi is the foremost consumer it this precious metal. The buyers prefer physical gold and the number of gold buyers is huge in the national capital market. A large number of investors prefer to invest in stocks and real states but there is a huge number of the investors who prefer to invest in Gold because of the astonishing return ability of gold. In the current scenario, the gold rate is been keep rising. Fluctuation of the price rate of gold keeps on happening. The fluctuation of the price rate of gold can occur due to various tax levies and other reasons. The gold rate in Delhi could be different from the gold rate in southern states and western states.

The tax levies are one of the reasons why the gold rate varies from state to state. International inflation of the gold price rate can also affect the domestic price rate of gold. The gold rate in Delhi varies from the other parts of the country, The difference occurs due to various aspects such as state taxes, octroi charges, making charges and as well as transportation charges.

Types of purity measures of gold in India

Various methods tell the purity of gold.  Gold is an expensive asset and no one wants to be bluffed by paying an extra amount for an ordinary metal. There are scammers all over the world and not only in our country.  Signs are introduced to avoid scams. The Bureau of Indian standards introduced hallmarking to certify the purity of gold. The components of the Bureau (BIS) of Indian standards which defines the purity of gold are as follows:-

  • BIS mark
  • Jewellery identification mark
  • Hallmarking centre’s identification number
  • Purity in Karat
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Things to remember before buying gold

This yellow metal can grab the eyeballs of almost everyone. No wonder the story of crow stealing flashy ornaments such as gold could be true. Nothing is absolute but buying the gold comes under everyone’s bucket list for sure. We Indians are indeed among the largest consumers of gold. Therefore we should note down some points before buying this precious yellow metal. The notes are as follows:- 

Weight of the gold

In India, gold jewellery is sold as per weight.  Gems like diamond and emerald are used as an eye-catcher and as well as to make the final product heavier. The weight of the final product tells the price of the product.  Therefore you need to be smart enough as you are not paying the final amount for the gold itself but the other metal or gem as well.

Purity of gold

Karat is the standard identification of the purity of gold all over the globe. You should not buy the gold without confirming its purity is a sign of madness. 24k gold is the purest gold in the market which means it’s 100% gold and there is no involvement of other metals. Talking about the 22k gold means the final product contains the involvement of other metals and the final product contains only 92% of gold in it. You need to pay attention to these details while buying jewellery.

Handmade or Machine-made

In the generation where the demand for yellow metal is immense. It is hard to meet the demand through the handmade process. Machinery is used to meet the demand for yellow metal consumption in the country.  Hand-made jewellery is a quite higher price than machine-made jewellery.

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Jewellery store

Since India is the second-largest consumer of gold. There are millions of jewellery stores in the country. The demand for this yellow metal is high in the market, and so does the number of scammers is also high in the market. You should buy the gold from the verified store only. If buying from a non-verified store they may charge extra from the actual rate of gold in its current state. In simple words, suppose you are buying the gold in Mumbai from a non-verified store the store may charge you an extra amount of money from the actual gold rate in Mumbai. Moreover, it is not only about the money factor, as well as it’s about the purity of the jewellery. 

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