Gold is traded in U.S. dollars, so fluctuations in the dollar's value directly impact gold prices. A weaker dollar makes gold more affordable in India, boosting demand and driving prices up.
Economic factors, particularly inflation, affect the value of gold. As people seek gold as a safe haven, its demand rises, leading to higher prices.
Changes in gold import duties or local tax policies can directly affect gold prices. It is essential to stay updated on government announcements regarding taxes on gold.
To measure the purity of gold, consider these effective techniques that provide a basic idea about gold purity:
Check the gold for tarnishing or unusual colouration. Pure gold retains its bright, lustrous yellow colour. In comparison, impure gold may look dull or discoloured.
Use a specialised gold tester to assess the gold's conductivity. Pure gold has high conductivity, while lower conductivity may suggest the presence of other metals.
Using a magnet to see if the gold item reacts can help reveal the presence of other metals. If the piece is drawn to the magnet, it suggests the existence of impurities.
The acid test entails placing a small drop of nitric acid on the gold item. Authentic gold will not change, while other metals might react, pointing to a lower purity level.
For the most precise results, think about taking the gold to a professional jeweller or a certified assay centre for a comprehensive purity evaluation.
As per the current taxation rules in India, you need to pay Goods and Services Tax (GST) on gold purchases. Staying informed about any changes in the GST rate is essential since it will determine what you pay for the same quantity of gold.
Currently, a 3% GST is levied on all gold transactions, while a 5% GST is applied to making charges for jewellery.
For example, suppose you are buying a gold bracelet worth ₹50,000 with 15% making charges. The GST will be ₹1,500 on the gold and ₹375 on the making charges. Thus, the total GST payable on a ₹50,000 gold bracelet would be ₹1,875.
Pledging your gold as collateral allows you to secure a gold loan to meet various financial needs. The loan amount you can receive depends on the current price of gold.
When gold prices are high, the collateral is worth more, meaning you can borrow more money against your gold. On the other hand, if gold prices fall then collateral's value falls as well. This means you will get a lower loan amount for the same quantity of gold.
Tracking these rates can help you maximise your borrowing potential based on current gold valuations. At Bajaj Markets, comparing gold loans from different lenders and applying is simple and hassle-free.
