Gold is a precious metal and is considered an attractive investment option. The gold prices in India fluctuate as per market situation and are keenly monitored during the time of trading.
There are two types of gold traded in India, i.e, 24K and 22K. The first one is considered the purest form of gold with a purity of 99.99 per cent. It is too soft to be moulded into jewellery. On the other hand, 22k gold is basically 22 parts of gold and two other metals like copper and zinc. It is used to make jewellery.
India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonne of gold annually.
The price of gold depends on several factors including currency, global developments, interest rates etc. If the rupee weakens against US dollar, the price of gold will go up. Gold price is also dependent on international factors like global economic growth, volatile policies and interest rates.
In Indian cities, gold prices depend on various factors like demand, state taxes, octroi, interest levied etc. Gold can be bought in the form of bars, coins and jewellery. The investment options include physical gold, exchange trade funds and sovereign bonds.
Currently, the import duty on gold in India stands at ten per cent. The central government keeps on changing the import duty depending on the need to curb imports.
Gold is considered as a safe investment tool. It also acts as an excellent hedge against inflation. Amid the geopolitical situation, people have now turned to gold as a safe investment tool.
In India, gold is officially marked by the Bureau of Indian Standards. It is called hallmarking and acts as a guarantee of the precious metal’s purity. It protects the buyer from adulteration of gold.
