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Gold Rates Today
Gold coin

Gold rate in India

24K Gold/10 gm
₹71,430
As on 21 June 2024
790.00 (1.12%)
22K Gold/10 gm
₹68,030
As on 21 June 2024
750.00 (1.11%)

All you need to know about Gold Rate Today

Gold serves as a valuable element within an investment portfolio for numerous reasons. Historically, gold has maintained its credibility, and acts as a hedge, especially during economic uncertainty or high inflation. During times of market volatility or economic downturns, gold often moves in the opposite direction of these assets, thereby diversifying and stabilizing a strong fiscal portfolio. Gold being a tangible asset, provides a sense of security and ownership that digital or paper assets may lack. Overall, incorporating gold in your investment portfolio can enhance diversification, mitigate risk, and preserve wealth over the long term.

 

24 Carat Gold Price

A 24-carat gold is pure gold, meaning it is 99.9% gold with very few impurities. It is the highest purity of gold available for commercial purposes. Gold is often alloyed with other metals like silver, copper, or zinc to make it harder and more durable for jewelry or other applications. However, 24-carat gold is typically too soft for everyday wear, hence, it is more commonly used for investment purposes. 
 

Staying abreast of the 24-carat gold price is crucial because it directly impacts various aspects of finance. Whether you are a jeweler, investor, or consumer, fluctuations in gold prices influence purchasing decisions, investment strategies, and overall economic trends. Being updated enables individuals to make informed decisions regarding buying, selling, or holding onto gold assets, thus safeguarding financial interests and maximizing opportunities in a dynamic financial market.

 

22 Carat Gold Price

A 22-carat gold is composed of 91.67% pure gold and 8.33% alloy metals out of 100%. This alloy mixture enriches the durability and strength of the gold, making it suitable for use in jewelry and other decorative items. The addition of alloy metals like copper or silver also affects the color of the gold, often resulting in a slightly different hue compared to 24-karat gold, which is 99.99% pure.
 

Staying updated on 22-carat gold prices is crucial for individuals as it directly impacts their financial decisions and investments. Whether buying or selling gold jewelry or bullion, knowing the current market rate helps in making informed choices, maximizing profits, and safeguarding against potential losses.

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50years
22K & 24K Gold Rates Per Gram in India
Gram
Today
Yesterday
1 Gram
₹7,143
₹7064.00
8 Gram
₹57,144
₹56512.00
10 Gram
₹71,430
₹70640.00
12 Gram
₹85,716
₹84768.00

What are the factors that drive the price of gold?

Various factors influence the gold price, including:
 

Supply and Demand: Like any commodity, the basic economic principle of supply and demand plays a significant role. If the supply of gold increases relative to demand, its price may decrease, and vice versa.
 

Inflation: Gold is frequently considered a hedge against inflation. When inflation rises, the purchasing power of currency declines, leading investors to seek assets like gold, which can drive up its price.
 

Interest Rates: When interest rates are low, the opportunity cost of holding gold is lower, making it more attractive as an investment. Conversely, when interest rates rise, the opportunity cost of holding gold increases, leading to a potential decrease in demand and price.
 

Currency Exchange Rate

Since gold is priced in US dollars globally, fluctuations in the strength of the dollar relative to other currencies can affect the price of gold. When the dollar weakens, gold becomes cheaper for holders of other currencies, potentially increasing demand and price. 
 

Geopolitical Events: Uncertainty or instability in geopolitical situations can drive investors towards assets like gold, increasing demand and driving up prices.
 

Market Sentiment and Speculation: Investor sentiment and market speculation can have short-term effects on the gold price. Positive sentiment towards gold as an investment can drive up prices, while negative sentiment can lead to price decreases.
 

Industrial Demand: Gold is not only a monetary asset but also has industrial uses, particularly in electronics and jewelry sectors. Changes in industrial demand can affect the overall demand for gold and consequently its price.
 

What techniques are deployed to check the purity of gold?

Several techniques are employed to check the purity of gold such as:
 

Acid Test: This involves applying nitric acid to the gold item. The reaction between the acid and the metal indicates its purity. Since gold is resistant to oxidization, it will not react with the acid. However, impurities like copper or silver will produce a reaction.
 

Electronic Testing: Electronic gold testers use conductivity to determine the purity of gold. Since pure gold is an excellent conductor of electricity, any deviation from this conductivity indicates impurities.
 

Fire Assay: This is a traditional method where a sample of gold is heated to a high temperature to separate it from impurities. The remaining gold is then weighed to determine its purity.
 

X-Ray Fluorescence (XRF): This is a non-destructive technique where X-rays are directed at the gold sample. The X-rays cause the atoms in the gold to emit X-ray fluorescence, which is then analyzed to determine the purity of the gold.
 

Density Test: This method encompasses measuring the density of the gold. Since different metals have different densities, the density of the gold can indicate its purity.
 

Ultrasonic Testing: Ultrasonic testing measures the velocity of sound through the gold sample. Since the velocity of sound varies with the material, this can be used to determine the purity of the gold.
 

Hallmarking: In some countries, gold items are stamped with a hallmark indicating the purity of the gold. These hallmarks are often regulated by government agencies to ensure accuracy.

The impact of GST on gold rates

The impact of Goods and Services Tax (GST) on gold rates can vary depending on several factors:
 

Tax Structure: in India, before GST implementation, gold was subject to various taxes like Value Added Tax (VAT), excise duty, and customs duty. The implementation of GST streamlined the taxation system, resulting in changes in the overall tax burden on gold.
 

Tax Rate: If the GST rate is higher than the previous taxes, it may lead to an upsurge in the overall gold price. On the contrary, if the GST rate is lower than the previous taxes, it could potentially result in a decrease in the price of gold. 
 

Demand and Supply Dynamics: Changes in taxation can affect the demand and supply dynamics of gold. For example, higher taxes may reduce demand for gold, leading to lower prices, while lower taxes may stimulate demand and push prices higher.
 

Global Factors: Gold prices are also influenced by global factors such as economic conditions, geopolitical tensions, currency movements, and investor sentiment. Changes in GST may interact with these international factors to determine the overall impact on gold rates.
 

Overall, the impact of GST on gold prices is complex and depends on a combination of tax policies, market dynamics, and investor sentiment. It is significant to analyze these factors comprehensively to comprehend how GST affects gold prices in a particular context.
 

Advantages of investing in gold

  1. Diversification: Gold's low correlation with traditional assets helps spread risk in investment portfolios, reducing overall volatility.
     
  2. Hedge against Inflation: Gold typically maintains its value during periods of rising inflation, serving as a safeguard against currency devaluation.
     
  3. Store of Value: With its intrinsic worth and historical track record, gold preserves wealth over time, acting as a reliable store of value.
     
  4. Liquidity: Gold is easily convertible to cash and traded globally, providing investors with quick access to their investments when needed.
     
  5. Portfolio Insurance: Gold serves as insurance against risks and market downturns, mitigating investment portfolios during turbulent times.
     
  6. Long-Term Growth: Despite short-term volatility, gold offers potential for capital growth and wealth preservation.
     

Which investment option is most favorable: physical gold, gold ETFs, or sovereign gold bonds?

Choosing the most favorable investment option among physical gold, gold Exchange-Traded Funds (ETFs) and sovereign gold bonds depends on various factors such as liquidity preference, risk tolerance, and investment goals. 
 

Physical gold provides tangible ownership but involves storage costs and security concerns. Gold ETFs offer convenience and liquidity, as they trade on stock exchanges like shares, but entail management fees. Sovereign gold bonds, issued by the government, offer interest income along with potential capital appreciation, making them an attractive option for long-term investors. However, they lack liquidity compared to ETFs and may have lock-in periods. Eventually, the choice depends on individual circumstances and investment objectives. 
 

Factors to evaluate before investing in gold

Investing in gold can certainly be a significant investment decision, and there are several factors you should consider before making a purchase:
 

Purpose: Determine why you want to buy gold. Are you looking to hedge against inflation, diversify your investment portfolio, or simply own a tangible asset?
 

Market Conditions: Keep track of the current market conditions. Gold prices can be influenced by various factors such as economic stability, geopolitical tensions, and inflation rates.
 

Forms of Gold: Gold can be purchased in various forms including bullion bars, coins, jewelry, and ETFs. Each form has its advantages and considerations in terms of liquidity, storage, and premiums.
 

Authenticity: Ensure that the gold you're buying is authentic. Look for reputable dealers and verify the authenticity of the gold through reputable certification agencies.
 

Storage and Insurance: Depending on the quantity and type of gold you buy, you may need secure storage options such as a safe deposit box or a specialized vault.
 

Costs and Premiums: Costs associated with buying and selling gold may include dealer markups, storage fees, insurance premiums, and transaction costs. Be aware of any premiums associated with specific forms of gold.
 

Risk Tolerance: While gold is often considered as a safe asset, its prices can be volatile in the short term. Understand how fluctuations in the price of gold may affect your investment.
 

Tax Implications: Understand the tax implications of buying and selling gold in your jurisdiction. Taxes may vary depending on factors such as the form of gold, holding period, and applicable tax laws.
 

Long-Term vs. Short-Term Investment: Determine whether you are looking for a long-term investment or seeking short-term gains. Your investment horizon can influence the type of gold you purchase with your overall investment strategy.
 

Impact of gold rates on gold loans

Gold rates directly influence the dynamics of gold loans, as they determine the loan-to-value ratio (LTV) and interest rates. When gold prices rise, borrowers can avail of higher loan amounts against their gold collateral, as lenders adjust LTV ratios accordingly. On the contrary, during a decline in gold prices, lenders may lower LTV ratios, potentially reducing the loan amount accessible to borrowers. Therefore, understanding and monitoring gold rates is crucial for both borrowers and lenders in assessing the value and terms of gold-backed loans.

FAQs on Gold Rates Today

The price of gold is primarily determined by supply and demand dynamics in the global market, influenced by factors such as economic indicators, geopolitical events, and investor sentiment.

The taxes charged on gold purchases typically include Goods and Services Tax (GST) and any other taxes, if applicable.

The best place to buy gold depends on factors like pricing transparency and security, with options including reputable bullion dealers, banks, and online platforms

The price of gold fluctuates due to various factors such as supply and demand dynamics, economic indicators, geopolitical tensions, and changes in investor sentiment.