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In India, gold is not just a symbol of prosperity and wealth but also a long-term investment. Gold rates change daily based on various factors ranging from local economic factors to global trends.

Historical Gold Price in India

Here are the prices of gold in India over the last year:

Months Lowest Price 24 Karat Gold – ₹ Per 10 Grams Highest Price 24 Karat Gold – ₹ Per 10 Grams
October 2022 50,210 51,790
September 2022 50,310 52,890
August 2022 50,350 52,860
July 2022 50,250 52,760
June 2022 50,350 52,860
May 2022 50,290 52,790
April 2022 47,800 52,140
March 2022 50,950 54,330
February 2022 48,980 51,550
January 2022 48,390 49,860

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November 2022 Gold Rate in India

Parameter Gold price (24 karat)
November 1 Rate Rs.4,998 per gram
November 15 Rate Rs.5,187 per gram
Highest Rate in November Rs.5,187 per gram on 15 November
Lowest Rate in November Rs.4,998 per gram on 1 November
Overall Performance Incline

October 2022 Gold Rate in India

Parameter Gold price (24 karat)
October 1 Rate Rs.5,002 per gram
October 31 Rate Rs.5,009 per gram
Highest Rate in October Rs.5,061 per gram on 27 and 28 October
Lowest Rate in October Rs.5,009 per gram on 31 October
Overall Performance Decline

September 2022 Gold Rate in India

Parameter Gold price (24 karat)
September 1 Rate Rs.4,997 per gram
September 30 Rate Rs.4,955 per gram
Highest Rate in September Rs.5,007 per gram on 23 September
Lowest Rate in September Rs.4,923 per gram on 22 September
Overall Performance Incline

August 2022 Gold Rate in India

Parameter Gold price (24 karat)
August 1 Rate Rs.5,060 per gram
August 31 Rate Rs.5,081 per gram
Highest Rate in August Rs.5,133 per gram on 17 and 18 August
Lowest Rate in August Rs.5,081 per gram on 22 August
Overall Performance Incline

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Determination of Hallmarked Gold Rates

The prices of standard gold and hallmarked gold are the same. The main difference between hallmarked gold and standard gold is purity. Purity is ensured via hallmarking.

Factors that Impact Gold Prices in India

Some of the factors that determine Gold Prices in India are given below:

  1. Import costs - Since demand is primarily met through gold imports, import costs affect the gold rate in India. Higher the costs, the higher the price of gold.
  2. Interest rates on bank fixed deposits - Bank fixed deposits are the go-to investment option for Indians. It is only rivalled by investments in gold. When FD rates fall, investors prefer moving their money to gold. Hence, the demand for gold rises and thereby prices.
  3. Strength of the US dollar - When the US dollar weakens, gold rates in India rise and gold prices in India fall when the US dollar strengthens. Since, India buys its gold from foreign countries, and when the US dollar strengthens against the Indian rupee, it makes purchases of gold (usually done in USD) more expensive.
  4. Global economic stability - Gold prices rise during economic instability as gold is considered a safer asset than others. People tend to move their money out of riskier assets into gold. Other assets bear the risk of being significantly devalued, whereas gold with high liquidity continues to hold value even during times of crisis.
  5. Seasonality - In India, demand for gold during festivals, marriages, and other auspicious occasions. Prices tend to be higher during these times.
  6. Inflation: Since gold is bought to hedge against inflation, gold prices tend to rise when inflation is on an upward trend.
  7. International prices - In general, when gold rates are on an upward trend, globally, gold prices in India also move upwards. Many central banks, especially in the US and Europe, hold substantial gold reserves. Prices move upward when these banks or other financial organizations buy more gold.
  8. International gold prices are hugely affected by the prices fixed on the London Gold Market, twice a day, i.e., once at 10:30 a.m. and once at 3 p.m. USD is the currency generally used when quoting prices, although it is fixed in Pound Sterlings and Euros as well.
  9. Production costs - Mining companies sometimes increase prices on production costs. This is reflected in the price of gold imported into India.
  10. Supply - Domestic production and supply are limited in India. Supply constraints can push prices upwards. Similarly, lower supplies of gold globally can make the metal dearer in India.

Sovereign Gold Bond Scheme

You can purchase Sovereign Gold Bonds from a commercial bank listed in India to avoid theft, fraud, etc. This will help you to avoid theft or fraud. An interest rate of up to 2.50% p.a. is provided if you purchase a bond. The Reserve Bank of India will determine the price for the Sovereign Gold Bond.

Sovereign Gold Bonds can be purchased at a post office and the Stock Holding Corporation. However, the interest earned from Sovereign Gold Bond Scheme is taxable.

Storing Gold in India

A bank locker can be hired if you wish to invest in gold. Even though bank lockers may be expensive, they are safe. You can also purchase gold in electronic form. Gold can be bought in bulk in the form of ETF. Purchasing gold in electronic form will protect against theft.

Gold Import in India

If you come to India from abroad, a certain amount of gold can be brought back. Rs.1 lakh worth of gold can be brought back by female passengers, while Rs.50,000 worth of gold can be brought back by male passenger. The maximum amount of gold that can be brought back to India is 1 kg. However, duty will be levied and will depend on the value of the yellow metal.

Gold Demand in India

Over the last few years, the demand for gold in India has increased significantly. Apart from purchasing physical gold, individuals can invest in gold ETFs and e-gold.

Process to Purchase Gold Coins

Gold coins in the country can be purchased in several grams. Up to 10 grams of gold coins can be purchased. It is important that you check the purity before purchasing gold coins. Certain banks supply gold coins. Tax is applicable if gold coins are purchased using a credit card. Gold coins can be purchased from jewelry shops as well.

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Why is the Gold Rate Different in Different Cities in India?

Gold rates vary across different cities in India. The key reasons for this are:

  1. Taxes - State taxes differ from state to state. Some states levy higher taxes than others. This is one of the reasons why gold is more expensive in some cities than others.
  2. Demand - Owing to different population sizes and varying demographics, demand for gold also varies. Discounts are usually offered on larger volumes. So gold prices in cities like Mumbai are lower, given the more significant quantum of transactions.
  3. Carriage - Indian imports a bulk of its gold requirements by sea. Gold prices in port cities, e.g., Chennai, are lower than those in interior cities, e.g., Delhi, because of the absence of inland transport charges.
  4. Local associations - Cities have gold associations, which have a say in setting the prices. This will also account for differences in gold prices between cities.

Gold measurements in India

Gold is measured in grams and troy weight. (Troy ounces, million ounces, grams, kilograms, tonnes, short tonne, metric tonnes, tolas, etc.)

Karat represents purity when gold is mixed or alloyed with other base metals such as copper. 24K or 24 karat gold is pure gold. Fineness is to represent gold parts per thousand. (18K gold would be 18 of 24 karats out of 1,000 parts or fineness of 750).

What is the Difference Between Carat and Karat?

Carat is a unit of weight used to measure precious gems such as diamonds and pearls. Two hundred milligrams or 0.2 grams make a metric carat. Carats are abbreviated to ct. Carats are often mistaken to denote size.

Karat is a unit of finesse or purity used to measure gold. 24-karat gold denotes pure gold. When gold is mixed with another metal, the purity is diluted. The purity is then expressed as the parts of gold out of 24. E.g., 22 karat gold (mixed with copper) will be 22 parts gold and two parts copper. Gold being soft, is alloyed with another metal, usually copper, to attain form. Karat is abbreviated to kt.

What is the Difference Between 22k and 24k Gold?

Karats represent the finesse or purity of gold. Gold, a very malleable metal, is too soft to attain form on its own. It is usually alloyed with another metal, mainly copper, to attain form. The purity of the gold is then represented in karats as the parts of the gold present out of 24.

24-karat gold is 99.99% pure gold, whereas 22-karat gold is 91.67% pure. 22 karat gold means the alloy consists of 22 parts gold and two parts of the alloyed metal.

24k gold is priced higher than 22k gold being purer. However, some people prefer 22k gold being more durable. Import duties are generally lower for 24k gold and higher for 22k gold.

Indian gold reserves

This is the amount of gold held by India’s Central Bank. Referred to as store value, it is against these reserves that currency is printed and circulated in the economy. Besides providing value to currency, these reserves act as security for amounts due to depositors or trading partners.

Gold as an Investment in India

Some of different ways of investing in gold are mentioned below:

  • Jewellery
  • Gold bars
  • Gold coins
  • Multi Commodity Exchange

Investments in gold commodities, ETFs, funds and stocks can be done online adding another dimension to gold investments in India.

Digital Gold in India

With the world going digital, it is no surprise that gold has followed the digital trend. When you buy digital gold, you will be investing in pure gold, the physical equivalent of which will be securely stored by the seller in high-security vaults. The service provider should provide an invoice for the digital gold purchased, along with a vault balance reflected in the buyer's account.

You can sell the digital gold price at live market rates whenever you wish. You can also choose to take home the digital gold that was purchased. This can be taken in the form of jewelry or coins of equivalent value, but after adjusting the packaging and making charges. There is no overall limit to how much digital gold you can buy, although there is a daily limit of Rs.2 lakh worth of gold.

You can buy digital gold through several jewelers with tie-ups with the three licensed entities to sell digital gold in India - Digital Gold India (SafeGold), MMTC PAMP, and Augmont Goldtech. You can also buy digital gold through UPI payment apps such as PhonePe, Google Pay, PayTM, etc. However, brokerage firms have been barred by SEBI from selling digital gold. And also, check the prices of silver in India today.

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Gold Trading as a Commodity in India

Gold is traded through spot contracts or derivative contracts, i.e., investors can trade in gold without possessing its physical form.

  • Gold spot contracts are whereby gold is bought and immediately delivered (i.e., sold and delivered right away).
  • Gold futures contracts are whereby gold is bought and sold at a later date as per the contract. Unlike most other commodities, gold futures are traded at spot prices and not at prices influenced by demand and supply.

Gold is traded as a commodity on three major commodity exchanges in India:

  1. Multi Commodity Exchange (MCX)
  2. National Commodity & Derivatives Exchange (NCDEX)
  3. National Spot Exchange (NSEL)

Gold Futures Contracts on MCX

MCX is India’s leading commodities exchange and a leading exchange to trade in gold. Contracts traded here offer significant liquidity and offer investors the option of contracts in four different sizes as outlined below with their other key features:

Gold
  • Ticker GOLD
  • Trades during 6 months of the year i.e. February, April, June, August, October, December (Monday - Saturday)
  • 1 contract = 1 kg of gold
  • Initial margin: 4%
  • Daily price limit: 3%
  • Upper limit on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
  • Quality: 995 purity, 999 purity
Gold Mini:
  • Ticker GOLDM
  • Trades in all 12 months i.e. January to December (Monday - Saturday)
  • 1 contract = 100 grams of gold
  • Initial margin: 4%
  • Limits on positions: Up to 2.5 MT for individual clients; higher of 12.5 MT or 15% of open position on market for all clients together through a member
  • Quality: 995 purity, 999 purity
Gold Guinea:
  • Ticker GOLDGuinea
  • Trades in all 12 months i.e. January to December
  • 1 contract = 8 grams of gold
  • Limits on positions: Up to 2 MT or up to 250,000 contracts at one time
Gold Petal:
  • Trades in months as specified by the exchange
  • 1 contract = 1 gram of gold
  • Limits on positions: Up to 2,000,000 contracts at one time

Information is now available online from many sources, both authoritative as well as informational. This facilitates decision-making to save time and effort. Besides the latest gold rates and factors that affect gold prices, information is available on gold production, trades, different forms of gold (physical and paperless), leading jewelers, etc. Experts also publish their views on gold as an asset as well their outlook on the performance of gold.

Gold Weight Conversion Table

To convert from To Multiply by
Tonnes Troy ounces 32150.7
Troy ounces Grains 480
Kilograms Tolas 85.755
Kilograms Bahts 68.41
Kilograms Troy ounces 32.1507
Troy ounces Grams 31.1035
Million ounces Tonnes 31.1035
Kilograms Taels 26.7172
Troy ounces Penny weights 20
Troy ounces Avoirdupois ounces 1.09714
Avoirdupois ounces Troy ounces 0.911458
Short tonne Metric tonne 0.9072
Grams Troy ounces 0.0321507

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Which is the best investment option: Physical Gold, Gold ETFs, or Sovereign Gold Bonds?

In this section, we talk about all three investment options pertaining to gold and determine which of these is better.

Paramaters Physical Gold Gold ETFs Sovereign Gold Bonds
Liquidity High High Bonds can be purchased at banks
Safety Low compared to bonds and ETFS High, as ETFs can be stored in the DEMAT account High, as bonds can be stored in the DEMAT account
Loan Can be availed Can be availed No loans can be availed
Investment Short-term Small quantities can be purchased and maintenance is low Small quantities can be purchased and maintenance is low
Tax Long Terms Capital Gains is applicable in case the investment is for than three years. In case the investment is for less than three years, tax that is levied will depend on the tax slab of the individual.
However, in case you invest in Sovereign Gold Bons and the investment amount is redeemed after maturity, no tax has to be paid on the gains.

Taxes on Gold in India

Gold as a commodity attracts taxation in India, and depending on what it is used for; the taxes levied on the resource differ.

Tax on Purchase of Gold

Most gold in India is imported, resulting in gold being subject to customs duty. The customs duty payable on gold stands at 10% of the total value of the gold. In addition, processing charges associated with purchase would be taxed at 5%.

The sale of Gst on gold in India brings it under the purview of GST (Goods and Services Tax), that was introduced in 2017. The GST on gold was set at 3%. As a result, the total tax payable on gold stands at 14% at present.

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