Today's Gold Rate in Erode

• The international spot price of gold: OTC markets such as the London Bullion Market fix the spot price of gold daily. Also, bullion traders and banks help to decide the spot price of gold. And the daily spot price of gold plays a key role in determining the international gold rates. As India exports most of its gold, international prices of gold have a direct bearing on the gold rates in the country.

• The gold futures price: Gold trade also occurs across global exchanges such as COMEX, TOCOM, DGCX, and more. Speculation drives the gold futures price. The gold futures price also affects the international gold prices.

• Demand and supply factors: After the international price of gold, the demand and supply factors primarily decide the gold price in Erode. For instance, in a fixed period, with the supply of gold remaining constant, high demand will cause the current gold rate in Erode to increase.

• Consumer behaviour: Along with demand and supply factors, consumer behaviour is integral in shaping the gold rate at Erode. For example, during the festival season, consumers can buy more gold. High demand increases the gold rates. Economic factors such as inflation also shape consumer behaviour and create a huge demand for this precious metal.

• The BIS logo: The certified centre stamps a distinct BIS logo as a hallmark to guarantee its authenticity.

• Number or mark of the assaying or hallmarking centre: Along with the BIS logo, a hallmarked gold item has the mark of the licensed centre. There are different BIS-approved centres, having separate marks/numbers, across the country.

• Jeweller’s unique identification mark: Any hallmarked gold item such as a gold ornament, coin and bar will have the jeweller’s unique identification mark. You can cross-check this mark with the list of BIS-licensed jewellers on the BIS website.

• Karat purity mark: The BIS also mandates embossing gold items with specific marks showing the karat purity levels. At present, stamping gold items with karat purity is mandatory for 14 carats, 18 carats, 20 carats, 22 carats, 23 carats and 24 carats.
   

Apart from the standard process of hallmarking, gold manufacturers and sellers conduct other tests such as X-ray Fluorescence Spectroscopy (XRF) test, metal detector test, thermal test, electric and electronic machine tests, to test the purity of gold. 

• Check the price of gold: Unscrupulous jewellers can sell a fake gold piece at a low price as against the standard gold rate in Erode. If the seller or jeweller agrees to sell the gold item at a price lower than the prevailing standard prices in Erode, chances are that the gold item is fake or impure.

• Check the hallmarking: Missing all, or any of the requisite BIS-specified marks shows a fake gold item.

• Use a density testing machine: You can take your gold item to a jeweller, having a density testing machine. The machine provides accurate results for the purity of gold.

• Use a carat measuring machine: A jeweller with a carat measuring machine can provide you with valid results about the purity of your gold item.

• Buy a home testing kit: You can buy a home testing kit having a testing stone and vials with varying concentrations of nitric acid. You can rub your gold item on the testing stone and apply the nitric acid to the mark. A fully dissolved mark can show a fake gold item.

• Do a magnet test: You can simply place a powerful magnet next to your gold item. It will draw a fake gold item because of its impure metal contents.

• Gold Exchange-Traded-Funds (ETFs): As an alternative to holding physical gold, you can invest in Gold ETFs. This investment merges the simplicity of gold investments with the elasticity of the stock market trading. It requires you to open a Demat account and a trading account to start trading in Gold ETFs.

• Sovereign Gold Bond (SGB) scheme: These are government-backed bonds having a tenure of 8 years. Denominated in grams, SGBs carry a minimum lock-in period of 5 years. These can be a risk-averse alternative to investing in physical gold.

• Gold mutual funds: These are open-ended funds allowing the option of investment through SIPs. On redemption, the fund house provides the Net Asset Value (NAV) of gold on that date.

• Look at hallmarking: A gold item, not having the requisite BIS-hallmarking components, is fraught with the dangers of fraud.

• Insist on getting a receipt: You must always request a physical receipt for the purchase.

• Know wastage charges: To account for the wasted or lost gold during the designing process, jewellers levy this charge. As the wastage or breaking charge varies between jewellers, it is advisable to know the charge beforehand.

• Ask about the making charges: For the services rendered - of designing your gold ornament - the jeweller or seller can levy a making charge. Remember to ask about this charge as it is an integral component of the final price.

• Geopolitical crisis: The yellow metal is also a crisis commodity. People buy more gold during times of strife, risks and uncertainties to hedge themselves. So if there is a global upheaval such as a disaster, market collapse, war, and so on, the gold rate in India, and consequently Erode, will increase.

• Repo rates: If the RBI announces a decision to slash the Repo rate, banks will start providing loans at a lower interest rate. This will provide people with opportunities to buy gold. The high demand then can increase the gold rate in Erode. Similarly, a hike in the Repo rate, resulting in higher interest on loans, can lower the current gold rate in Erode.

• Local issues: Local variables such as a hike in fuel rate or increase in transportation costs can directly affect the gold price in Erode. To offset the increase in the overall costs, sellers and manufacturers will add the fresh costs to the actual selling price of gold items. This will increase the current gold rate in Erode.

• The existing scenario in the Indian jewellery market: During times of seasonal festivities such as Diwali and Dhanteras, people start buying more gold. This high seasonal demand can hike the gold rate at Erode.

• Inflation: Investments in gold can beat inflation. So if inflationary trends emerge in the country’s economy, people can purchase more gold. This will increase the current gold rate in Erode.

• GST impact on making charges of gold items: As GST taxed the service sector, jewellers and sellers providing services, including the making of gold ornaments, came within its ambit. The rules fixed the tax slab for GST on making charges for gold items at 5%. To offset the fresh charge, jewellers passed the costs to customers. So for any gold purchase now, you must pay the making charges along with the GST on it.