BAJAJ FINSERV DIRECT LIMITED
✓ No Limit on Loan Amounts ✓ Interest Rate Starting @0.74% p.m. ✓ Minimal Documentation

916 Gold Rate Today

Check out the 916 gold rate in India and compare it with other types of gold to make an informed decision.

Gold offers exceptional value and durability and constitutes one of the most reliable investment options in India. Its long-lasting value helps to protect against inflation and economic instability. As a globally recognised asset, gold rates typically remain stable across borders, including 22-karat gold, also known as 916 gold.

India ranks among the world's top gold consumers, with demand peaks during the festive season. This demand, along with several other factors, influences gold prices. Understanding these elements allows investors to plan their investments strategically and maximise returns.

What is 916 Gold?

916 Gold refers to 22-karat gold. It contains 91.6% pure gold with a mixture of other metals such as silver, copper, or zinc. Jewellers utilise this combination to increase the strength and durability of the jewellery. It is ideal for everyday wear and provides a rich appearance.

  • Understanding 22-karat Gold Purity

Karat serves as a gold measurement term where 24-karat gold represents the purest form, possessing 99.9% gold content. Pure gold is soft and prone to scratches, which renders it unsuitable for intricate jewellery designs.

22-karat gold comprises 91.6% gold and 8.4% other metals. In simpler terms, it contains 1000 parts of alloy and 916 parts of pure gold. This ratio provides durability while maintaining its elegance, rendering it a highly suitable choice for ornaments and investments. 

  • Why is it Called 916 Gold?

Manufacturers designate 22-karat gold as 916 Gold because it contains 91.6% pure gold. The hallmark 916 indicates its authenticity and guarantees high-quality gold within jewellery markets. Buyers place trust in this mark as it confirms genuine 22-karat gold.

Factors that Affect the 916 Gold Prices

Gold is more than a valuable asset; it serves as a financial resource. Many international and domestic factors influence the fluctuations in the 916 gold rate. Staying aware of these factors will help individuals understand which time will be ideal for investing in gold within the financial market.

Global Market Trends

International commodity exchanges trade gold in US dollars. Any fluctuations in global prices will directly influence the Indian market. The reasons are:

  • Investor behaviour

  • Concern about inflation

  • Fluctuating interest rate 

Since India relies heavily on imported gold, this has a significant impact on domestic rates:

  • A weaker dollar tends to increase global gold prices

  • Global inflation typically increases the demand for gold and increases the price

  • Increased investment in gold ETFs can also impact international pricing trends

Economic Indicators

Gold prices reflect key economic impacts on gold, such as:

  • Inflation levels

  • Interest rates

  • GDP growth

  • Employment data 

When inflation increases, or economic growth slows down, investors often seek safer assets like gold and increase the demand.

Demand and Supply

When demand rises, and supply remains limited, gold prices increase. In India:

  • Festivals and weddings significantly raise consumer demand

  • Global gold mining levels and import volumes affect the supply

  • Seasonal trends often lead to temporary price volatility

Weddings drive 50% of gold demand. However, record-high prices in August 2023 cut India’s demand by 10%. This hit a three-year low and is slowing global price growth.

Geopolitical Events

The Indian government controls gold imports through duties and taxes. Therefore, policies related to import and export play a crucial role in influencing currency fluctuations. Increases in import duties or GST raise the price of gold for consumers, while reductions lower it. 

These fluctuations can make the buying process uncertain. Consequently, staying informed about the news and monitoring the latest gold rates can help in making informed, timely decisions. 

Local Market Dynamics

The gold price rises rapidly during the festive and wedding season due to increased demand. Gold holds cultural significance on various Indian occasions, which increases demand. The reasons include:

  • Local taxes

  • Transportation costs

  • Jewellers' making charges

  • Demand and supply in specific cities

  • Seasonal buying trends

How to Check 916 Gold Purity?

To ensure you are investing in authentic gold, you can follow some simple methods. These methods are for basic review only; for a proper inquiry, you need to seek help from a certified jeweller:

Understanding Hallmarking

The Bureau of Indian Standards (BIS) has established a regulation to define the purity and authenticity of gold. Therefore, before you purchase gold, ask for:

  • The hallmark certification

  • Hallmark logo

  • 6-digit Hallmark Unique Identification (HUID).

Identifying BIS Certification

The BIS hallmark stamp verifies the authenticity and purity of the gold. It includes:

  • BIS Logo

  • Purity Mark

  • Assay Centre’s Mark

  • Hallmarking Year

  • Jeweller’s ID Mark

To identify this:

  • Look for the official BIS logo with a lion symbol and the letters “BIS” 

  • Check for purity marks like “22K”

  • Look for a number or code indicating the certified year of the jewellery

  • Find the unique jeweller’s code 

Verifying Purity and Authenticity

There are several straightforward methods to ascertain the purity of your gold. For example:

  • Apply a drop of nitric acid and observe if the colour remains unchanged, as pure gold does not react to this acid.

  • Utilise a black stone, also known as a jeweller’s stone. Attempt to create a mark with it; pure gold will remain unchanged.

  • Employ a magnet to determine if it attracts the metal, as iron is a common metal that fraudsters use to mimic gold.

  • Gold possesses a specific melting point; therefore, a heat test will indicate the purity of the gold.

Comparing Prices Across Vendors

It is advisable to list and compare prices and charges from trusted jewellery sellers. Certain jewellers offer favourable deals during festive seasons; therefore, you need to check these offers. This practice will assist you in securing the most affordable transaction and provide insight into the prevailing market rate. 

Understanding Making Charges

Making charges for gold jewellery typically range from 3% to 25% of the gold's value. This rate depends upon the complexity of the design and the individual jeweller.

The Goods and Services Tax (GST) on gold is 3%, comprising 1.5% for Central GST (CGST) and 1.5% for State GST (SGST). Gold-making charges applied by jewellers are taxed at 5%.

For instance, consider purchasing gold coins valued at ₹50,000. The GST will be ₹1,500 (3% of ₹50,000). If the jeweller charges ₹2,000 for making it, the GST on these making charges will be ₹100 (5% of ₹2,000).

Consequently, the total amount you have to pay will be ₹53,600.

Frequently Asked Questions

What is the difference between 916 and 999 gold?

The primary difference lies in their purity. 916 gold signifies it contains 91.6% pure gold, while 999 gold indicates it possesses 99.9% pure gold.

The frequency is not fixed. Numerous domestic and international factors influence the price. Consequently, the price can change daily.

To calculate the price of gold, one can utilise the formula: Final Value = Weight of Gold x Purity x Current Market Price per Gram.

This indicates it contains 91.6% pure gold, with the remaining 8.4% comprising an alloy.

View More
Home
Home
ONDC_BD_StealDeals
Steal Deals
Credit Score
Credit Score
Accounts
Accounts
Explore
Explore

Our Products