Of the many evergreen investment options in India, gold is clearly one of the most popular choices. In Andhra Pradesh, specifically, gold is not just an investment option but also highly sought after in the form of jewelry. Traditionally, gold jewelry has been an integral part of festivities and important occasions in Andhra Pradesh. No celebration in this southern state of India is complete without having the precious metal involved in one manner or the other.
If you live in this Indian state and are interested in learning all about the present gold rate in Andhra Pradesh, the things to consider before buying gold, and the different ways to invest in the yellow metal, here is everything you need to know.
Before you buy gold jewelry in Andhra Pradesh or decide to invest in the yellow metal, there are many important factors that you need to consider. Of these, the current gold rate in Andhra Pradesh is one of the most crucial aspects to look into. Since the price of the precious metal keeps fluctuating on a day-to-day basis, you need to take a look at the rate of gold in Andhra Pradesh on the day you plan to buy or sell gold, so you can make a well-informed decision.
Here is the rate of gold in Andhra Pradesh today.
24 carat gold: 10 grams for Rs. 45,710
22 carat gold: 10 grams for Rs. 42,740
In case you plan to buy or sell gold bars or gold coins, you need to be up to date about the rate of 24 carat gold, which is the purest kind of the metal available. This is because coins and bars are made from 24 carat gold. So, here is a closer look at the 24 carat gold rate today in Andhra Pradesh.
24 carat gold: 1 gram for Rs. 4,710
24 carat gold: 8 grams for Rs. 37,680
As for gold jewelry, it is 22 carat gold that is relevant here. This kind of gold consists of 22 parts gold and 2 parts of other metals like silver, nickel or other alloys. If you are interested in buying or selling gold jewelry, you need to first check out the 22 carat gold rate today in Andhra Pradesh.
22 carat gold: 1 gram for Rs. 4,486
22 carat gold: 8 grams for Rs. 35,888
Gold is a commodity, and like any other good, it is also subject to the Goods and Services Tax (GST). The Goods and Services Tax is a kiect tax that has replaced various erstwhile indirect taxes such as VAT and service tax. It is levied on different goods and services. So, in addition to the regular gold price in Andhra Pradesh, you also need to pay GST on gold when you make your purchase.
The rate of GST on the value of gold is 3%. So, if you are planning to buy gold in the form of gold coins or gold bars, the Goods and Services Tax will be levied at 3% on the gold price. However, if you wish to buy gold jewelry, you need to also factor in the GST on the making charges involved, which is levied at 5%. So, in the case of gold jewelry, the GST on the value of gold is 3%, while the GST on the making charges is 5%.
Gold jewelry is undoubtedly very popular in Andhra Pradesh. There are several large chains as well as small businesses that sell gold jewelry to interested buyers in the state. In addition to this, gold is also a popular investment option for the people of Andhra Pradesh. As you’ve seen in the sections above, the gold cost in Andhra Pradesh is constantly fluctuating.
Investors can buy the metal when its price is low and sell it a few years later, when the price has risen, thereby earning gains on their investments. If you are in Andhra Pradesh and wish to invest in gold, there are different ways to do this. You can invest in physical gold, gold ETFs or even Sovereign Gold Bonds.
As their name indicates, Exchange Traded Funds (ETFs) are mutual funds that are easily traded on an exchange. Gold ETFs are exchange-traded funds that track the price of the yellow metal. The main advantage of investing in gold ETFs is that they are highly liquid, making it easy to buy or sell your investments as per your needs.
The gold price today in Andhra Pradesh influences the current price at which gold ETFs are traded. So, it is important to be aware of gold prices if you are interested in buying gold ETFs. And here is how you can invest in this financial product.
Open a demat and trading account with a stock broker of your choice.
Then, log into the trading portal offered by your stockbroker and look for gold ETF investment options.
Pick the gold ETF that you are interested in buying.
Place a buy order for the number of units of that ETF that you want to purchase.
The exchange will then match your order with a corresponding sell order.
Then, your buy order is executed, and your gold ETF units are credited to your demat account.
Another way to invest in gold involves buying Sovereign Gold Bonds (SGBs). These securities are backed by the government of India, which means they come with the sovereign guarantee. Here are the key features of Sovereign Gold Bonds.
They have a maturity period of 8 years.
They can be redeemed after five years.
The interest rate currently offered by SGBs is 2.5% per annum.
Investing in Sovereign Gold Bonds is extremely easy. In fact, you can choose to invest in these securities either electronically or physically. Here are the different ways in which you can invest in SGBs.
You can invest in them electronically with your demat account.
You can buy SGBs through your bank’s internet banking portal.
You can purchase these securities from the offices or branches of banks, designated post offices, or the Stock Holding Corporation of India (SHCIL).
It is important to check the purity of the gold you buy. The price alone is not the only factor that you need to keep an eye on. The purity of gold matters too. But how do you know whether the quality of the gold you wish to buy or invest in is exactly what it claims to be? For this, there are several tests and techniques available. Here are some ways to check the purity of gold in Andhra Pradesh.
This test is commonly used by small chains of jewellers to check and certify the purity of gold. Here, the surface of the gold is scratched a bit, and some nitric acid is placed on it. In the case of pure gold, there is no change in the color of the surface. However, if the gold is fake, the surface turns green.
Large and established jewelers commonly use a purity testing machine to determine the purity and quality of gold. You can make use of this option to check the purity of gold in Andhra Pradesh before you buy the precious metal.
The BIS Hallmark symbol is a certification provided by the Bureau of Indian Standards. It is a testimony to the purity of the gold being certified and indicates that the said gold is of the highest quality.
There is no shortage of demand for gold in a state like Andhra Pradesh. The people in this state typically gravitate towards gold in the form of jewelry or ornaments. In fact, gold jewelry is widely used in various family celebrations and festivities. In addition to this, gold is also used as an investment option for people looking to invest their money safely. Physical gold is generally a popular avenue for investment in the form of bars or coins. However, ETFs and SGBs are also growing more popular.
Several factors determine the gold rate in Andhra Pradesh. Some of these are explained below.
If the demand for gold rises or the supply falls, the price of gold rises. However, in case of falling demand or rising supply, the price of gold tends to fall.
Interest rates also impact the price of gold in Andhra Pradesh. If the interest rates rise, the demand for gold falls because people tend to invest in other schemes. So, the price of gold tends to fall too.
If the import duties and taxes on gold rise, this is reflected in the price of the yellow metal, causing it to also increase.
Before you buy gold in Andhra Pradesh, you need to consider certain important aspects. This can help you make the right decisions. Here is a mandatory checklist of the things you need to do before buying gold in Andhra Pradesh.
Check the rate of gold in Andhra Pradesh.
Look for the BIS Hallmark Certification in case of gold jewelry or coins.
Ensure you get a receipt for your purchase.
Factor in the making charges too.
Buy your gold from a certified jeweler to avoid any issues later on.
Aside from the mandatory checklist given above, here are some other important things to keep in mind when you are buying the yellow metal in Andhra Pradesh.
Gold is generally available as 24 carat gold or 22 carat gold. The former is used to make coins and bars, and the latter is used to make jewelry. There are also 18 carat gold ornaments.
Ensure that you buy gold that comes with the BIS Hallmark certification. This ensures that the quality of the gold you purchase is of the highest level.
You also need to factor in the terms and conditions of the purchase, and since these terms depend on the seller, do remember to read them thoroughly.
No one apex authority does not determine the gold price in Andhra Pradesh. Instead, it changes based on a number of factors, some of which are listed below.
The inflation rate in the country
The government’s gold reserves
The demand and supply for gold in the local market
The international price of gold
The taxes and import duties on gold
There is no dearth of reputed places to buy gold in Andhra Pradesh. You can buy gold in any of its forms - be it jewelry, gold coins or gold bars - from any of the large and trustworthy chains of gold sellers in the state. Alternatively, you can also choose to buy your gold from any of the smaller family-owned shops in the state. Remember to compare the gold price in Andhra Pradesh as well as the making charges before you choose a seller.
22 carat gold is a kind of the yellow metal that is made of 22 parts of gold and two parts of silver, nickel or other alloys.
The GST rate applicable to gold jewellery is 3%. The GST rate on making charges is an additional 5%.
If you want to quickly check the gold rate in Andhra Pradesh, you can find this information online.
No, 24-carat gold is only used for making gold coins and bars. 22-carat gold is used to make gold ornaments.