Gold Rate in Kozhikode Today

Gold continues to symbolise wealth and security in Kozhikode, holding cultural significance and serving as a reliable investment. Those interested in investing can choose from options such as traditional jewellery, coins, bars, gold ETFs, and sovereign gold bonds. 

Gold price varies due to factors like currency fluctuations and government regulations. As rates  of gold change daily, staying updated on the current gold rate in Kozhikode is essential. Understanding these factors can help optimise investment choices. Tracking prices according to purity ensures smarter and more profitable purchases.

There are various gold investment options, including physical gold, digital gold, sovereign gold bonds, mutual funds, and exchange-traded funds. You need to choose your preferred option based on your risk tolerance and expected profit value.

Physical Gold

This is a popular and traditional gold investment option in India. You can invest in physical gold through jewellery, ornaments, coins, bars, and biscuits. Although it may carry a risk of theft, its demand rises during festive seasons.

Digital Gold

Digital gold serves as an alternative to physical gold, allowing investments through online digital and fintech platforms. These platforms enable buying, selling, and storing gold digitally in secured vaults. There is no need to visit physical stores or handle physical transactions.

Gold ETFs

Gold Exchange-traded Funds (ETFs) function similarly to physical gold investments but without physical transactions. Gold ETFs is held in demat or paper form, eliminating the risk of theft. Each unit of an ETF corresponds to one gram of gold.

Sovereign Gold Bonds (SGBs)

SGBs are among the safest gold investments in India, backed directly by the Reserve Bank of India. The Indian government offers a fixed interest rate of 2.50% per annum. As per regulations, individuals can invest up to 4 kilograms of gold in these bonds.

Gold Mutual Funds

These funds allow investments in gold bullion and gold mining companies. The investment process requires proper documentation and depends on individual risk tolerance. It is important to note that gold funds are not directly impacted by fluctuations in the prices of gold.

Before making the final decision to chase your gold purchase, you need to consider factors such as seller reputation, live gold price, purity, and hallmark. These elements ensure proper verification of your gold while keeping your investment profitable for the future.

Gold Purity

Gold comes in different purity levels, with 24K being the purest form. The price of gold fluctuates based on its purity, so it is essential to assess the value of your gold item accordingly. To verify its purity, check for a hallmark or request a gold purity test.

Current Gold Rate

Checking the current gold price in Kozhikode is necessary, as prices change frequently. Staying updated helps ensure you pay the correct price for the quantity purchased, making your decision more informed.

Hallmark

A hallmark is a triangular stamp issued by the Bureau of Indian Standards (BIS) to authenticate gold items. This stamp confirms the gold’s purity as per pre-set standards. It also provides details about the seller’s identification and unique identification number.

Additional Charges and Taxes

Purchasing gold involves extra costs, including making charges and Goods and Services Tax (GST). Making charges account for labour and design complexity, while GST is applied as a percentage of the total cost. It is important to review these charges and calculate the final price accordingly.

Reputed Seller

With numerous sellers in Kozhikode, selecting a reputable one is crucial. Trusted sellers provide verified gold with proper hallmarks and may offer attractive purchase deals, ensuring authenticity and reliability.

Complete Documentation

Obtaining proper documentation after purchase is essential. Receipts and transaction bills serve as proof of authenticity and are necessary if using gold items as collateral for a loan against gold in the future.

Factors like demand-supply, inflation, rupee-dollar dynamics, and interest rate changes influence the gold price in Kozhikode. Here’s more:

Festive and Wedding Seasons

Gold demand in India rises during festive and wedding seasons, impacting market dynamics. Increased demand leads to higher prices, while lower demand results in a price decrease.

Inflation Hedge

Gold acts as a hedge against inflation, maintaining its value even during economic slowdowns. As inflation rises, price of gold tend to increase while other investments may struggle.

Interest Rates

Gold prices are inversely related to interest rates. Higher interest rates prompt investors to sell gold for profit, while lower rates encourage gold purchases.

Government Policies

Government reserves, policies, and taxes influence gold prices. Decisions by the Indian government and RBI create price variations.

To evaluate gold purity, you can perform simple tests at home or visit a trusted seller. Here are some reliable methods: 

Acid Test

You can conduct this test at home with a gold testing kit or seek assistance from a seller. Scratch a small section of the gold item on the provided stone, leaving a mark. Apply a few drops of nitric or hydrochloric acid to the marked area. Pure gold will not dissolve, indicating its authenticity.

Density Test

Gold is dense and does not float in water, unlike other metals. Submerge the item in water to check if it sinks. Additionally, professional tools can measure its density, which needs to be approximately 19.3 grams per cubic centimetre for pure gold.

Magnet Test

Pure gold is not magnetic. Bring a magnet close to the item. If there is no attraction, the item is likely pure gold. Any magnetic response may indicate the presence of other metals.

Hallmark Check

A quick method to assess purity is to check for a hallmark. Look for the triangular BIS (Bureau of Indian Standards) stamp, which signifies the item’s authenticity and verification.

X-ray Fluorescence (XRF) Test

This modern, non-destructive method is used by professionals to accurately determine gold composition. It utilises X-ray technology to analyse the item’s components, ensuring precise results.

The Goods and Services Tax (GST) is a government-applied tax in India that covers various goods and services, including gold. Anyone planning to buy gold needs to be aware of the applicable GST rates to accurately determine the total cost of the investment.

 

As per current regulations, a 3% GST is charged on the purchase of gold items, whether it is 24K, 22K, or 18K gold. Additionally, a 5% GST applies to making charges for gold jewellery, while imported gold attracts a 12.5% import duty. 

 

Understanding these charges allows for better cost estimation and helps prevent unexpected expenses.

The amount that can be borrowed through a gold loan depends on its current market value, regardless of the purchase date. Higher gold prices increase the loan amount, while lower prices reduce the borrowing potential.

 

Lenders use the Loan-to-Value (LTV) ratio to determine the loan amount, which is capped at 75% as per RBI guidelines. Staying informed about gold prices and LTV ratio is crucial for making well-informed borrowing decisions.

Explore gold loan options from a wide range of lenders on Bajaj Markets, and apply online.