Gold Rate in Odisha

Gold has maintained its relevance throughout history as a symbol of wealth, prosperity, happiness, and fortune. Be it religious symbolism or artwork; gold had shaped and influenced the cultural contours of India profoundly. In the present age of the digital revolution, gold is among the most popular investments. This is because gold investments can not only act as a hedge against inflation but also provide stable returns. As a resident of Odisha, you also can zero in on this yellow metal to diversify your investment portfolio. Read on to know the multiple aspects of making gold investments in Odisha.

Check out the Gold Price Today in Odisha for different weights below

The implementation of the Goods and Service Tax (GST) in 2017 revised the tax on gold in the country. It levied a 3% GST on the value of gold along with 5% GST on the making charges. Before GST, consumers had to pay 1% VAT on gold’s value and 1% sales tax. In the absence of a mechanism to tax the service sector, there were no making charges on gold jewellery.

You can understand the impact of GST on the gold rates with an example. Suppose the gold price today in Odisha is Rs. 4,000 per gram along with 10% making charges. Here’s how the GST would impact the price of gold:

As a resident of Odisha, you have multiple options to invest in gold. Here’s a look:

• Investment in the physical metal: You can choose to invest in gold ornaments, coins or bars. At the time of making an investment in physical gold, do remember to consider its purity and the making charges. Also, ensure you keep physical gold in a safe place.

• Investment in alternatives to physical gold: As alternatives to investing in physical gold, gold mutual funds, gold derivatives and Sovereign Gold Bonds. These products can be selected on the basis of your investment horizon and financial goals. Also, do remember to consider the associated risks and the market risks of gold derivatives.

If you want to invest in Gold Exchange-Traded-Funds in Odisha, then you have to first open a Demat account. Also known as gold derivatives, Gold ETFs are traded across major stock exchanges, such as the NSE and the BSE. Gold ETFs have the price of physical gold or the stocks of gold mining companies as their underlying asset. These electronic investments in gold combine the simplicity of gold investment with the flexibility of stock market investments. However, gold ETF investments carry market risks because of volatility in gold prices.

To invest in Sovereign Gold Bonds (SGBs) in Odisha, you must first understand its features. SGBs are government bonds issued by the RBI. These have a tenure of 8 years and a lock-in period of 5 years.

You can purchase SGBs directly from the listed banks, designated post offices and stock exchanges. Alternatively, you can purchase them from a licensed intermediary. SGBs are denominated in multiples of grams of gold, and you can start investing with 1 gram of gold. You will also receive periodic interest payments on SGBs.

Over the years, the state of Odisha has shown a strong demand for gold. Consumers purchase gold during festivals such as the Rath Yatra, Dussehra, Dhanteras and Akshay Tritiya. The demand for gold also increases during the wedding season. Generally, people buy physical gold as ornaments, coins and bars. But gold-related investments, including gold derivatives and gold SGBs, are also becoming popular.

The mineral-rich state of Odisha has several gold mines, such as those at Mayurbhanj and Malkangiri. So the gold rate in Odisha is comparatively lower.

Before you purchase gold in Odisha, ask yourself a few questions:

• Have I checked the hallmark?

As the BIS hallmarking guarantees the purity of a gold item, check for all the BIS stamps, including the BIS logo, the assaying centre’s mark, the carat purity mark and the jeweller’s unique mark.

• Have I checked the gold price today in Odisha?

Make sure that the price of gold is the same as the prevailing market rate.

• Have I checked the making charges?

The making charges on gold jewellery can vary between jewellers. So check for the making charges. Remember, intricate gold jewellery designs have higher making charges.

• Have I checked the terms and conditions for buy-back?

There can be a scenario where you want to sell your jewellery. Typically, while the original seller can buy back your gold item at reasonable rates, other gold dealers might offer you arbitrary prices. So ensure that the buy-back terms are favourable.

• Have I received a physical receipt?

To have valid proof of your purchase, always insist on a physical receipt.

Once you go through the checklist, consider a few more variables as well:

• Consider the gold purity measure: You must know the carat and fineness purity of gold before buying gold. Pure gold has a Carat purity of 24. It has a fineness, or purity of gold in parts per thousand, of 999. The BIS has specified the following carat and fineness purity measures:

• Consider the purpose of purchasing gold: Before buying gold, identify the purpose of making the purchase. If you are buying for festivals or a wedding, you can purchase gold jewellery - of the requisite Carat and purity fineness level - from a trusted seller. But if your purchase is for investment, consider buying 24 Carat gold coins or bars. Gold-related investments, such as gold SGBs and more, are viable alternatives to purchasing physical gold.

Several factors, such as inflation, global trends, currency rate fluctuations, government gold reserves, and so on, influence the current gold rate in Odisha. Here’s a look at why and how:

• Inflation: People across the world and in the country purchase gold to protect themselves from inflationary risks. So when the economy shows a rise in inflation, people tend to purchase more gold. This will increase the demand as well as the price for gold.

• Global trends: Economists call gold a crisis commodity. During times of global crises, such as the collapse of financial markets, wars, government change, and more, people buy more gold to hedge themselves from the risks. The increase in demand can then cause a resultant increase in gold prices.

• Interest rates: Suppose the RBI announces its decision to hike the existing interest rate. How will it impact the present gold rate in Odisha? Well, a hike in interest rate will lower the gold rates as people will hold on to cash instead of making gold investments.

• US Dollar vs INR: The majority of global trade in gold occurs in the US Dollar. So a strong US Dollar vis-a-vis the Indian Rupee (INR) will cause the gold rate in the country to increase.

• Government reserves of gold: Governments across the globe and in India maintain a reserve of gold. If there is a decision to increase the gold reserves, it would directly impact the price of gold. This is because the demand for gold will increase, causing a corresponding hike in gold rates.

Depending upon the type of gold item, you can make a purchase from various places. Here’s a look:

• Jewellery stores: You can visit a jewellery store if you want to purchase designer jewellery or ornaments for weddings and festivals. However, ensure that the jeweller has the requisite certification and trade license. You can ask whether the store is a member of a national or regional jewellery association. You can also go through the list of BIS-certified jewellers on the BIS’ website. Along with checking the jeweller’s credentials, you must also ensure that the making charges are reasonable.

• Bullion traders: To purchase pure gold bars and coins, you can visit a registered bullion trader. Buying coins and bars from bullion traders can provide you with advantages, such as standard mark-up charges and a better buy-back policy.

• Banks: You can buy the highest quality gold coins of various denominations from banks, either by making a physical visit or online. For making a purchase at banks, you are required to complete the KYC process. Besides, for purchases above Rs. 50,000, you are required to furnish PAN details. However, the rates of gold coins sold by banks can be slightly higher.

• Gold-related investments: For gold-related investments, including Gold ETFs and Gold SGBs, you can contact a SEBI-licensed stockbroker.