Gold Rate in Palakkad Today

Gold holds deep cultural significance in India and is also seen as a stable investment. However, its price keeps fluctuating due to global trends and local market conditions. Since gold rates vary from city to city, staying informed is essential.
 

Whether you're purchasing jewellery or investing in gold, tracking daily price changes can help you make smarter decisions. If you're at Palakkad, Kerala, this guide will keep you updated on the latest gold rates in your city.

If you're looking to invest in gold, here are some popular options you can consider:

Digital Gold

For those who want to invest without the hassle of storage, digital gold is a convenient option. You can start with as little as ₹1, and the equivalent amount of gold is stored securely in insured vaults. This method offers easy accessibility and does not involve the risk of physically handling gold.

Physical Gold

The most common way to invest in gold is by purchasing jewellery, coins, bars, or biscuits. You can buy physical gold from jewellers or authorised dealers in these forms. However, you need to make arrangements for its secure storage. 

Gold Exchange-traded Funds (ETFs)

Gold ETFs are mutual fund schemes that trade on stock exchanges like NSE and BSE. These are supported by physical gold, allowing you to invest without actually owning it. They ensure smooth conversion of assets into cash, making them a flexible option for investors.

Gold Mutual Funds

Gold mutual funds are a type of mutual fund that lets you invest in gold reserves, either directly or indirectly. Instead of buying physical gold, your investment is linked to assets such as gold mining companies, gold syndicates, etc,.

Sovereign Gold Bonds (SGBs)

SGBs are securities issued by the Reserve Bank of India (RBI), and are usually valued in grams of gold. They are considered a low-risk investment since they are backed by the government and also offer periodic interest.

Buying gold is a significant investment, whether for jewellery or financial security. Here are a few key things you should consider before buying gold:

Check the Current Gold Rate

Gold prices fluctuate based on local and global market trends. Checking the latest gold rates in Palakkad will help you make your purchase at the right time and avoid paying more than necessary.

Verify Gold Purity

Gold comes in different purity levels, such as 18K, 22K, and 24K. The higher the purity, the more expensive it is. Always check the karat rating before buying to ensure you’re getting the quality you’re paying for.

Consider Making and Additional Charges

Jewellery prices often include making charges, which vary from jeweller to jeweller, along with applicable taxes. These extra costs can significantly affect the final price, so it’s important to factor them in before making a purchase.

Buy from a Trusted Jeweller

Purchasing gold from a reputable jeweller ensures authenticity and quality. Well-established jewellers in Palakkad provide certified gold, transparent pricing, and reliable customer service.

Look for Hallmark Certification

A BIS (Bureau of Indian Standards) hallmark guarantees the purity of gold. It also includes details like the jeweller’s identification, ensuring your purchase meets quality standards.

 

Read also:  How to Identify Hallmark?

Gold prices don’t remain constant—they fluctuate based on several factors. Understanding these influences can help you make informed buying or investment decisions.

Import Duty

India imports a large portion of its gold. Any change in import duties directly affects the final price of gold in Palakkad, making it essential to stay updated on duty revisions.

Local Demand

Festivals, weddings, and cultural traditions influence gold demand in Palakkad. When demand is high, especially during peak seasons, prices tend to rise.

Global Market Trends

Gold prices in Palakkad are linked to international trends. Factors like global demand and supply, geopolitical events, and currency fluctuations impact gold rates worldwide, which in turn affect local prices.

Government Policies

Decisions by the Indian government or the Reserve Bank of India (RBI), such as changes in gold reserves, investment regulations, or tax policies, can influence gold prices.

Inflation Rates

Gold is often used as a shield against inflation. When inflation rises, the demand for gold increases as the investors view gold as a safety net. Hence, the gold prices too increase. 

Currency Exchange Rates

Since gold is traded globally in US Dollars, the value of the Indian Rupee against the USD plays a crucial role. A weaker Rupee makes gold more expensive in India.

Interest Rates

When interest rates are low, gold becomes a more attractive investment compared to fixed-income options, increasing its demand and pushing up prices.

 

Before buying gold, it’s important to check if it’s pure. Here are some common ways to verify gold purity:

Hallmark Certification

The Bureau of Indian Standards (BIS) hallmark is the most reliable proof of gold purity in India. It includes:

• The BIS logo

• Gold’s purity level (like 18K, 22K, or 24K)

• A unique Hallmark Unique Identification (HUID) number

 

Always look for this hallmark before purchasing gold in Palakkad.

Density Test

Gold is heavier than most other metals. If a gold item feels too light, it may have impurities. Jewellers can compare the density of your gold with pure gold to check its authenticity.

Magnet Test

Pure gold is not magnetic. If a magnet attracts the gold item, it would contain other metals. This is a simple test you can try at home.

X-ray Fluorescence Test

Many modern jewellers use X-ray fluorescence (XRF) machines to scan gold and check its purity. This test gives quick and accurate results without damaging the gold.

Visual Check

Look closely at the gold item. If you see discolouration, fading, or tarnished areas, it might not be pure. Real gold does not change colour over time.

Nitric Acid Test

A jeweller may scratch the gold item slightly and apply a drop of nitric acid. If the colour changes, the gold may have impurities. This test should be done only by professionals.

The Goods and Services Tax (GST) plays a big role in determining the final cost of gold in Palakkad. Knowing how these charges apply can help you plan your budget before making a purchase.

GST on Gold Purchase

When you buy gold, you have to pay a 3% GST on its value. This tax increases the base price of gold, making it slightly more expensive.

GST on Making Charges

Jewellers add making charges for crafting gold jewellery, and a 5% GST is applied to these charges. If the design is intricate or handmade, the making charges will be higher, increasing the final price further.

Total Cost Impact

The GST on both gold and making charges raises the total price of jewellery. If you're buying gold in Palakkad, it's important to factor in these taxes to ensure your purchase fits within your budget.

Gold is commonly used as collateral for loans, and its price directly affects how much you can borrow. Here’s why:

Higher Gold Prices Mean Higher-valued Loans

When gold prices rise, the value of your pledged gold increases. This means lenders can offer higher Gold loan amounts based on the same quantity of gold.

Lower Gold Prices Reduce Loan Value

If gold prices drop, the value of your gold decreases. As a result, the loan amount you qualify for will be lower, even if you pledge the same amount of gold.