Factors Affecting Gold Rates in Ahmedabad

Factors Affecting Gold Rates in Ahmedabad
Factors Affecting Gold Rates in Ahmedabad

If you are planning to buy gold jewellery items in Ahmedabad, it is important for you to check the current prices of gold. While the 22k gold price in Ahmedabad is currently 4706 INR per gram, the 24k gold rate in Ahmedabad stands at 5134 INR per gram. This difference has a significant impact on your budget since the size and quality of both variants are the same.

Gold is a popular form of investment in Ahmedabad. The yellow metal has been an integral part of Indian culture for millennia. Gold is seen as a symbol of social status and prestige, and the demand for gold runs high in India.

Gold is available in Ahmedabad at the present gold rate as bars, coins and jewellery etc. Ahmedabad is one of the largest consumers of gold having several super-sized jewellery stores for all budgets and occasions. Here are few factors affecting Gold Price in Ahmedabad:

  1. Demand and supply: The yellow metal is priced based on the overall demand, supply and the economic factors that influence its demand in India. The price of gold (as found naturally) has become a very scarce commodity. Not many nations have a huge reserves of gold, and thus gold prices depend on factors like its demand in India, the demand and supply factor.
  1. Import rates behind Gold Prices: The demand for gold in India is driven by jewellery demand. Jewellery accounts for two-thirds of India’s total consumption and the country was the largest consumer of gold in the world until 2013, when it was overtaken by China. In volume terms, the country imports 800-900 tonnes of gold annually.To be sure, India has moved away from its insatiable appetite for gold recently as a result of rising income levels and improving financial conditions having raised the discretionary spending power of households.
  1. Rates of US Dollar on gold price:  Gold is an internationally traded commodity since time immemorial. Traded in physical and paper form, gold prices are primarily determined on the basis of dollar rates. Unlike shares, where issuing companies determine the value of each share irrespective of its market price , gold prices inversely move with the dollar as there is more demand for international currency than the yellow metal.
  1. International or geopolitical relations:  The geopolitical situation plays a significant role in determining the price of gold. Tensions between global powerhouses can cause gold prices to soar, bringing in profits for those who have invested in gold.
  1. Inflation: Gold is a hedge against inflation and reacts to inflation data. If there is more inflation in the economy, gold prices usually rise. There are many events that can cause prices of gold to go up such as geopolitical tensions, fears of devaluation in foreign currency, etc.

How is Gold’s purity determined?

Gold is an impeccable value in terms of quantifying one’s wealth as well as for investment. It has been used as a form of currency and store of value for more than two millennia. However, judging the quality and purity of gold is of the utmost importance, both for investors who may buy jewelry or coins made from gold, and also for those who trade it in various markets across the world.

Gold is normally available in four qualities i.e., 22-karat gold, 18-karat gold and 14-karat gold and 10-karat gold. The purity of gold is measured through the Karat system, which indicates the percentage of pure gold present in an alloy. For instance in a 14-karat jewellery, it contains 58% pure gold, whereas in an 18-karat jewelry it has 75% pure gold.

Another way of determining the purity and gold content of jewellery is by checking the hallmark stamp on the item itself. The hallmark should indicate the authorised logo, date of manufacturing, carat weight or fineness of the gold in question.

Impact of GST on Gold Price: 

Due to GST, gold prices have increased by 0.75%. Apart from the impact on gold prices, GST has impacted gold imports as well as across both organised and unorganised sectors. The new tax structures were implemented at midnight of June 30th 2017, after which offline jewellers across India had to shut-down their works.