Gold Rate Today in Coimbatore | Gold Price for 22 & 24 Carat 3 Oct 2023

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Considering the fact that Indians have long regarded gold as something auspicious, it is no wonder that we as a country are amongst the top 3 consumers of the yellow metal. So, if you’re in Coimbatore and in the market for gold, it is essential to know what the gold rate in Coimbatore today is.

Since the price of this precious metal is something that undergoes frequent changes, it is important to be aware of the current gold rate in Coimbatore. And that’s exactly what you’re going to be looking at now. Here’s the gold price in Coimbatore.

22 carat gold rate today in Coimbatore: Rs. 44,840 for 10 grams
24 carat gold rate today in Coimbatore: Rs. 48,920 for 10 grams

Today 24 Carat Gold Price per Gram in Coimbatore

24 carat gold is widely considered to be one of the purest forms of the metal that’s sold in the market right now. So, obviously you would want to know what the 24 carat gold rate today in Coimbatore is, especially if you’re interested in purchasing it as coins or bars. Let’s take a quick look at what it is currently retailing for.

24 carat gold: 1 gram for Rs. 4,892
24 carat gold: 8 grams for Rs. 39,136

Today 22 Carat Gold Price per Gram in Coimbatore

If you’re more into purchasing gold ornaments, then you’d be surprised to know that 22 carat gold is what almost all jewelers use to make them. This is primarily due to the fact that 22 carat gold is more pliable and conducive for making ornate jewels. That said, here’s what the 22 carat gold rate today in Coimbatore is.

22 carat gold: 1 gram for Rs. 4,484
22 carat gold: 8 grams for Rs. 35,872

Who Fixes Gold Prices in Coimbatore?

As you already know by now, the gold price in Coimbatore is something that’s constantly fluctuating. So, it’s natural to wonder who fixes the gold rate in Coimbatore. If this is something that you’ve been thinking of, here’s some information that can give you some clarity.

Unlike many other products and commodities, there is no one authority or entity that fixes the price of gold. As a matter of fact, the price of gold is something that’s influenced by a plethora of different factors, with demand and supply being one of the most important of them.

Also, when it comes to India, there’s another major factor that plays a huge role in determining the price of gold - taxes. Since gold mines and the subsequent output from them are very scarce in India, we import the metal from other countries to satisfy our demand. This leads to customs duties, GST, and other taxes, which can ultimately increase the gold price in Coimbatore.

How is the Purity of Gold Determined?

The purity of gold is determined based on whether or not it is mixed with other metals or alloys. The purity is expressed in terms of carats, on a scale of 0 to 24. The purest of gold is 24 carat gold, which is simply just gold without any additions. Gold coins and bars are made of 24 carat gold.

There is also 22 carat gold, which is commonly mixed with silver, zinc or nickel and is used to make regular jewelry. 18 carat gold is mixed with copper or silver and is used to make studded and diamond jewelry.

How to Know if You are Buying Fake Gold?

There are many easy ways to find out if the gold you are buying is authentic or fake. Here are some such techniques or solutions.

The Magnet Test

Gold is a non-ferrous metal, so it is not attracted to magnets. You can use this property to differentiate between real and fake gold.

Look for Certification

Pure or authentic gold also comes with its own BIS Hallmark certification. You can find this on the jewelry, coins or bars that you purchase.

Use a Purity Testing Machine

Today, many gold sellers have their own purity testing machines that help you verify the purity and the authenticity of the gold you are buying in Coimbatore.

Factors Affecting Gold Prices in Coimbatore

As you’ve seen above, there are many different factors that influence the gold rate per gram in Coimbatore. Understanding these factors should help put you in a better position when it comes to making key decisions with respect to gold. Here are the top factors that drive gold prices.

Demand and Supply

First and foremost, this is one of the most influential factors that determine the one gram gold rate in Coimbatore. While the supply of gold has been quite constant, the demand for gold tends to fluctuate often. And so, the more the demand for this precious metal is, the higher the price of gold is likely to be. On the other hand, when demand drops, the price would also naturally go down.

Inflation

Inflation is basically the rate at which the prices of commodities increase over time. Therefore, if there’s an uptick in the rate of inflation in the country, the price of gold also usually sees an increase as well.

That said, gold has traditionally delivered high returns that have consistently managed to beat inflation. This is one of the reasons many investors prefer to hold in gold as part of their investment portfolio.

Interest Rates

Gold and the interest rates in the country share an inverse relationship, which means that the price movement of both of these variables move in the opposite direction. For instance, if the interest rates in the country increase, the price of gold tends to go down a little. And when the interest rates in the country are lowered, the price of gold increases.

Government Reserves

The government of every country holds gold as part of its reserves. These gold reserves are held for a variety of financial and economic reasons. Sometimes, governments choose to sell a part of their gold reserves for a number of reasons.

When governments choose to offload their reserves by selling gold, it increases the supply in the market, and you see a reduction in the gold price. Similarly, when governments purchase gold to add to their reserves, it increases the overall demand, and the price of gold tends to go up.

Gold as an Investment in Coimbatore

Although most of the gold purchases in Coimbatore and in India are in the form of ornaments, that’s not the only reason why people purchase the precious metal. In fact, gold acts as a very good investment option since it’s considered to offer inflation-beating returns.

That’s why many individuals choose to purchase gold in various forms. This way, they can not only beat inflation but also create wealth in the long term. So, if you’re looking to do the same, then it is crucial to know what the gold price in Coimbatore today is.

How Can You Make Gold Investments in Coimbatore

Unlike other investment options, gold offers quite a bit of choice for investors looking to invest in it. In fact, there are as many as four different ways in which you can invest in gold for long-term wealth creation. Here’s a quick look at the options available to you.

Physical Gold

This is the most common way that many investors tend to invest in gold. While some may prefer to purchase and hold gold ornaments, others tend to buy and hold gold bars or coins.

Gold ETFs

An Exchange Traded Fund (ETF) is essentially a mutual fund that’s traded on an exchange. It pools the money of several individuals and invests them in an asset or multiple assets. In the case of Gold ETFs, the money is invested in gold. Gold ETFs are very liquid and can be bought and sold extremely quickly.

Sovereign Gold Bonds (SGBs)

SGBs are essentially bonds that are issued by the Government of India. These bonds have a mandatory lock-in period of 5 years, with the total tenure being 8 years. One of the advantages of SGBs is that you can start investing in as little as 1 gram.

Why do Gold Rates in Coimbatore Fluctuate?

Gold rates in Coimbatore fluctuate for a number of reasons. However, the main driving factor can be traced back to the demand for precious metal in the city. The demand rises during festivals and occasions, leading to a price rise. And during other times of the year, the price tends to fall back down. Aside from this reason, government policies, interest rates, taxes and the jewelry market in the city also influence the gold prices and cause them to fluctuate.

The Impact of GST on the Gold Rate in Coimbatore

As you’ve already seen, taxes in the form of the Goods and Services Tax (GST) is a major factor in determining the gold rate per gram in Coimbatore. The GST was introduced in 2017 as a one-stop solution for all the various indirect taxes that were being levied on goods, services, and commodities.

And since gold has also been included in the purview of the GST, the tax influences the final pricing of the metal.

The rate of GST that’s levied on gold is currently at 3%. However, this is only on the metal. In the case of gold ornaments, there’s a component called ‘making charges’, which essentially counts as a service. GST is also levied on the ‘making charges’ component of gold ornaments at the rate of 5%. So, this is something that you should factor in when purchasing the metal at the current gold rate in Coimbatore.

Taking a Gold Loan in Coimbatore

Among the many financial products linked with gold, a gold loan is one of the most popular ones. You can avail a gold loan in Coimbatore by pledging any gold ornaments you have in your possession in return for borrowed funds. This is a helpful way to access emergency funds in case you need to pay for any unexpected expenses. The amount of loan that you can avail depends on the weight of the gold that you pledge, its purity and the gold rate today in Coimbatore per gram.

Which is the Best Investment Option in Coimbatore: Gold or Mutual funds?

Given that there are many investment options out there, it can be confusing for you to choose between them. One such dilemma many investors have is the choice between gold and mutual funds. Interestingly, each investment option comes with its own benefits.

1. Advantages of investing in gold

There are many different ways to invest in gold in Coimbatore, like ETFs, digital and physical gold and SGBs.
Gold is an effective hedge against inflation.
There are no additional charges or fees for trading in gold.

2. Advantages of investing in mutual funds

There are different kinds of mutual funds for every kind of investor.
Some mutual funds like ELSS offer tax benefits too.
Mutual funds are professionally managed by fund managers, making them suitable for beginners too.

Difference Between KDM and Hallmarked Gold in Coimbatore

KDM and Hallmarked gold are two different types of gold that you’re likely to find in Coimbatore. Here’s how the two are different.

KDM Gold

KDM gold is manufactured using a combination of 92% gold and 8% cadmium. However, since cadmium is a toxic element and is known to cause severe health issues, the Bureau of Indian Standards (BIS) has banned its usage.

Hallmarked Gold

Hallmarking is a certification that’s provided by the BIS. The presence of the Hallmark symbol acts as a stamp of certification of the quality claimed by the seller.

Gold ETFs in Coimbatore

Taking into account the disadvantages one faces with having to store physical gold safely and securely, gold ETFs were introduced in the market. These ETFs give you a more secure way to invest in gold. That’s not all. Gold ETFs are very liquid and can be bought and sold easily on the exchange.

One of the key things about gold ETFs is that it tracks the price movement of gold. This effectively means that whatever the gold rate in Coimbatore today is, the price of the ETF will automatically reflect it. That said, to invest in gold ETFs you require a demat account since they’re required to be held in an electronic form.