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Gold Price In Kolkata – What Drives Gold Prices in India

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Gold price by Investorocean.com

What Drives Gold Prices in India Gold Market 

The affinity for Gold for Indians is impenetrable and has been tested repeatedly, but the metal has proved its mettle over time. However, the price of gold is not consistent throughout and has had its share of difficulties. There are several factors, which affect the prices of gold in Indian gold market, such as:

The Central Gold Reserve

The central reserve i.e. the Government, when starts to hold or procure gold in their reserve, the price of the gold goes up because of increased cash flow.

Volatility Gold

Market volatility in terms of recession or inflation affect the price of Gold. Gold is one investment, which is not effected by inflation as a result when inflation hits, because of the liquidity factor the metal its price goes up.

Gold Interest Rate

An increased interest rate in the market encourages investors to acquire more cash by selling off gold, as such the amount of gold in the market increases and with increase in supply, the rate of gold can drop.

Global Gold Market

As a crisis commodity, Gold is a favoured acquisition for import by the government and market around the globe. More imports from global entities of Gold makes way for increased rate and vice versa.

Monsoon

As unlikeable as it may sound, the price of gold may very well be affected by a good monsoon – and that is because 60% of all consumption of the yellow metal is accounted by the rural sector, which primarily is dependent on a good monsoon for better crops. A decreased monsoon will tend to have excess gold in the market on lesser rate as rural India tends to sell them.

Domestic Gold Demand

India is primarily in love with the metal, for any occasion such as marriage, and festivals the demand of gold goes up and hence results in increased rates.

Things to Remember Before Buying Gold Jewelry 

Before buying or “investing” in gold, the most preferred form is in jewellery. Given its popularity there are knock offs available in the market, as such you would be better off looking out for this pointers so as to buy and own the best gold jewelleries.

Weight of Gold

Gold jewellery is often combined with other gems and stones for a different design uniqueness, but that may affect the weight of the jewellery itself, hence always check the weight of gold individually for future insurance.

Gold Purity

A 24-carat gold is 99.99% pure and the purity starts to decrease below 24 carat, as such always know about the purity of your gold jewellery to assess its future value.

Hallmark Gold

A hallmark is a guarantee of the price, purity and quality of the gold jewellery. A hallmark jewellery is ensured that the investment is a safe one.

Labour Charge In Gold

The price of the gold jewellery is dependent on several factors including its purity, the alloys and other stones that are combined, and also the labour charge. The labour charge is something that is totally based on the intrinsic design. Always be aware of the rate of gold, to assess the labour charge that is being indicated.

Gold Buy Back

Most good jewellery stores in India offer buy back offers; this is a great option to have for the quality of the jewellery as well as the option to have the jewellery exchanged in future if you feel so.

How Can You Make Gold Investments 

Gold is many things all at once; it is versatile and is still unique in every sense. It does not amount to becoming a liability at any point because of its liquid nature and is most certainly is an asset. Investments in gold is not limited to buying gold in physical form these days How Can You Make Gold Investments

Gold is many things all at once; it is versatile and is still unique in every sense. It does not amount to becoming a liability at any point because of its liquid nature and is most certainly is an asset. Investments in gold is not limited to buying gold in physical form these days you can also invest in different schemes as well. 

Investing in Physical Gold

Investing in physical gold is buying gold in form of jewellery, coins, biscuits etc. They are the most traditional type of gold investment where you hold on to the physical asset and sell, if and when required, at a higher price.

Investing Gold ETF

Gold (Exchange Traded Fund) ETFs are like stocks and therefore implies that when you a piece of Gold ETF you also own a proportion of the total gold reserve in the market. However, any change in physical gold prices directly affects the difference of rate in Gold ETFs.

Investing in Gold Mutual Funds

Unlike Gold ETFs where you own a digital gold in proportion to the value of your investment, investment in gold mutual funds means that you own a share of the company, which directly mines the physical gold. Hence, any performance lapse in the company itself will affect your investments adversely.

you can also invest in different gold schemes as well. 

Investing in Physical Gold

Investing in physical gold is buying gold in form of jewellery, coins, biscuits etc. They are the most traditional type of gold investment where you hold on to the physical asset and sell, if and when required, at a higher price.

Investing Gold ETF

Gold (Exchange Traded Fund) ETFs are like stocks and therefore implies that when you a piece of Gold ETF you also own a proportion of the total gold reserve in the market. However, any change in physical gold prices directly affects the difference of rate in Gold ETFs.

Investing in Gold Mutual Funds

Unlike Gold ETFs where you own a digital gold in proportion to the value of your investment, investment in gold mutual funds means that you own a share of the company, which directly mines the physical gold. Hence, any performance lapse in the company itself will affect your investments adversely.

How To Check Pure Gold

Pure gold has value and by this, we mean to a level that, globally a countries solvency is based on its pure gold reserves. One of the advantages of Gold is that it is non corrosive and even combining it with other elements present in the nature does not change its own composition one bit. Zinc, copper, silver, and iron are among the impurities found in gold extracted by amalgamation or cyanidation.

However, impurities do affect the value or price of the physical gold. Anything that reduces the karat weight or millesimal fineness of a gold specimen is referred as an impurity. Nevertheless, sometimes impurities are added in the form other metals to enhance the quality of the gold itself, or may be increase its other properties. Adding impurities however, does consider that the value of the pure gold in the composition will only be considered as opposed to the total weight of the composition.

Impurities are induced in gold with metals such as iron, lead, silver, palladium, zinc, copper nickel etc. The combination of these element result in different properties including colour changes and increased amount of strength and hardness of the composition.

Difference between KDM and Hallmarked Gold

Gold has a different variety in In India, and it depends on the kind of metal it is mixed with. Given the metal’s everlasting worth, there are a few things to keep in mind while acquiring gold. It is critical to understand the purity of the gold you are purchasing. When purchasing gold ornaments, consider various factors in addition to purity, such as making charges, whether man-made or machine-made, weight, wastage percentage levied by the jeweller, buy back terms on the gold ornaments, you are purchasing, and hallmarking or certification of purity, among others. When it comes to ensuring the purity of gold you must know the difference between KDM Gold & Hallmark Gold.

KDM Gold are essentially gold that is mixed with cadmium. Traditionally to make detailed designs and definitions on a jewellery copper was soldered to the gold. However, given that the ratio of copper added to it was nearly 40% it soon lost its practicality. Eventually cadmium started making the rounds as the preferred element to be soldered with gold. Since it had a very low melting point it was an easier metal to deal with and also only 8% cadmium was enough to make a gold jewellery thus retaining 92% pure gold. But it was found that KDM gold was hazardous as the element itself was very harmful for the artisans who used to work with it and also the wearer. Thus BIS has banned KDM Gold on account of it being hazardous.

Hallmark Gold is nothing but the warranty or certification of the purity of gold used in the jewellery. Many institutions in India are assigned to certify the jewellery for its purity. A hallmark gold can range between 23 carat and 18 carat. 

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