Like every Indian city, Trichy is also home to a large population that chooses to invest in gold. Not only in India, but in the rest of the world too, gold is considered among the best investment instruments owing to its ability to withstand changes in market forces and resultant prices.
Since gold is a limited resource, it continues to hold its own as a precious metal. Despite price fluctuations caused by market events and regardless of how low the gold rate in Trichy today could drop to, investors can rest assured that their long-term returns will be profitable.
Another key factor involved in making gold a coveted investment is the versatility available in purchasing it. For instance, a lot of people in Trichy buy gold in the form of jewellery which can also be adorned during festivals and other celebrations. Alternatively, gold can be purchased as bars, coins or even invested in through Exchange Traded Funds. However, regardless of how you choose to invest in gold, it is essential to know the gold rate price today in Trichy.
Gold prices can change due to a range of factors. These include social, political and economical changes within the country or even globally. These factors impact the price at which gold is sold by jewellers and traders alike. It is important to know these factors in order to identify the best time to invest in gold.
Today, the gold price in Trichy is Rs. 45,524 for 10 grams of 24 carat gold. For 22 carat, the gold rate in Trichy today is Rs. 43,375.
Considering the high amount of fluctuations that happen in gold rates everyday, it is important to keep track of the price of gold. Keeping a regular track of gold prices can help you stay updated on the overall price trends for gold in Trichy and thereby, pick the best date to invest.
The gold today rate in Trichy is Rs. 4829 per gram for 24 carat gold. The price has averaged Rs. 4800 for the last week, suggesting that you can choose to wait before you buy or sell your gold investments.
It is important to know the prices of gold of both 22 and 24 carat, since that offers you a choice in terms of which gold is more affordable for you. Informed decision making can go a long way in ensuring that your investment offers the best returns possible.
For instance, today’s 22 carat gold price is higher than it has been in a week but the same cannot be said for 24 carat gold. For 22 carat, 1 gram gold rate today in Trichy is Rs. 4465.
As mentioned above, the gold rate is decided on the basis of several factors. Several factors go into determining the gold price in Trichy on a certain day.
International gold prices are the benchmark upon which the gold rate in Trichy today has been determined. This is because India imports gold mainly from abroad owing to having fewer natural gold reserves. It is important to note that international gold prices are derived from COMEX gold futures trading and also from trading in the London Over-the-Counter (OTC) spot gold market.
Since these international prices affect the gold price in Trichy today, it is helpful to keep an eye on news and developments happening across the world in order to ensure you make a fruitful investment.
The prices of gold internationally and even across India are decided by a similar range of factors. However, if you are an investor in Trichy, it is best you understand the specific factors that could impact the gold price. Read on to learn the different factors that affect the gold rate in Trichy.
As international gold prices are mainly quoted in terms of American dollars, the currency has an enormous impact on the gold prices in Trichy as well. As a result, when the value of the American dollar drops, the purchasing power of other countries increases and results in a spikein the international gold rate as well as in the rate of gold in Trichy.
If the Indian rupee is able to maintain a high value in the international markets, the price of buying gold will drop and further reduce the price of gold in India. However, the gold price in Trichy can increase if the value of the Indian rupee drops in the international markets.
Demand and Supply:
Demand and supply for gold as an investment instrument goes a long way in determining the price of gold in the country and the gold rate price today in Trichy. This can usually happen during the festive season in India, when a lot of celebrations and events are observed within families. During this time, especially when weddings are around the corner, the demand for gold rises which the supply may not always be in a position to match. At such times, the gold rate in Trichy tends to rise in line with the drop in supply. Another instance is during an economic recession, when the demand for gold as an investment increases. At such times, the gold today rate in Trichy is likely to rise.
While not immediately evident, the monsoon season has a huge role to play in determining the 1 gram gold rate today in Trichy. This is because rural India, which is responsible for 60% of India’s gold consumption, determines their purchases and expenditures and other facets of their life in accordance with the monsoon season. The monsoon helps farmers and other members of the rural population determine the state of the harvest that year. As a result, during a good monsoon season, when rain has been plentiful, the prices of gold tend to rise in India which further hikes the gold rate in Trichy.
Other Geopolitical Factors:
Geopolitical factors, such as wars resulting in emigration, can often result in gold prices rising. This is because during such political calamities, people choose to invest in gold, which is bound to ensure higher returns as an investment rather than any other form of currency or investment. Such geopolitical factors also play a significant role in determining the gold price in Trichy.
Even though gold is considered the best investment instrument for both existing and new investors, it is important to check for a few things before you make the purchase. Several factors can ultimately end up determining the value of your investment and that is why it is best to check these things even before you make the purchase.
While the gold price in Trichy may be a huge determinant, it is also important to consider a few other factors while making your purchase and investment. Read on below to learn what these are.
The purity of gold can determine the final value of the investment you make. There may be unscrupulous traders or jewellers in the market who might claim that the gold you are purchasing is purer than it actually is. To avoid being taken in by such untrue claims, it is important that you test the purity of the gold yourself before you make the purchase.
Hallmark and Certification:
Hallmarks and certifications on the gold you wish to buy are often the best ways to verify that the gold you are looking to purchase is authentic and worth the amount you are paying for it. Gold hallmarks are provided by the Bureau of Indian Standards (BIS), which is considered the authority in terms of gold certification.
Different jewellers may offer you different making charges for converting the gold you have brought into articles of jewellery. However, it is important for you to compare the charges you are being quoted with the making charges quoted by other jewellers. This will help you decide which jeweller might be the best option for you on the basis of the making charges.
Weight of the Gold Article or Piece:
Investing in gold and the amount involved can also often depend on the weight of the gold in question or the weight of the gold jewellery article you are purchasing. It is important that you know the weight of the gold for yourself so that there is no danger of you being overcharged by the shopkeeper.
It is extremely important to get an invoice for the gold you purchase, regardless of the form you purchase it in. An invoice is confirmation of the payment you have made to purchase the gold and acts as proof in case of a dispute later.
The Goods and Services (GST) Tax has completely overhauled the taxation on gold and even jewellery pieces made of gold. Currently, the total GST levied on gold is 3%, which is inclusive of the making charges for the gold jewellery.
Previously, it was significantly more expensive to buy gold. While there was no tax levied on making charges for the gold jewellery, the consumer was required to pay 1.2% as Value Added Tax (VAT) and 1% excise duty. All of these charges have been removed post introduction of the GST regime.
Investing in gold is one investment route that continues to remain popular among both existing and new investors. There are several routes open to those who wish to invest in gold. Once you start keeping an eye on the gold price in Trichy on a daily basis, it also becomes important to assess the options available to you in terms of how you wish to purchase your gold. While jewellery is preferred by people who wish to buy gold for festive or celebratory purposes, there are others who wish to purchase gold as an investment alone. Read on below to learn more about the investment options available to you.
Bars and Coins:
Gold is most commonly purchased in the form of bars and coins. These can be bought from a jeweller, bank, e-retailer, and even non-banking financial institutions (NBFCs) or government institutions, such as the Metals and Minerals Trading Corporation of India (MMTC) and the Stock Holding Corporation of India. Through these institutions, it becomes really easy and convenient to purchase gold since you can purchase as little as 0.5 grams of gold or however much you are able to afford.
Gold Exchange Traded Fund (ETF):
Gold ETF enables investors to trade gold through both paper and on the internet. One gold ETF unit is considered equivalent to the value of 1 gram of 24 carat gold. Gold ETFs are considered a safer option since you are trading in money and not actual gold. Another advantage offered by gold ETFs is that by holding them, you can buy or sell gold at the same price all across India.
Sovereign Gold Bonds (SGBs):
Sovereign Gold Bonds (SGBs) are issued by the Reserve Bank of India (RBI), which makes it an especially secure investment. SGB investments can be denominated through the gold’s weight and can be invested without investors having to store the gold. The best part of investing in SGBs is that investors earn periodic interest on their investment and also receive the gold’s market value once the security has reached maturity.
Checking the purity of the gold you purchase is very important as it enables you to rest assured that you are not being cheated out of your money. There are several ways you can check the purity of the gold you want to purchase before you make the final purchase. Read on to learn how you can check the purity of the gold you want to buy.
You can keep an eye out for the BIS logo or hallmark on the piece of gold you are looking to purchase. Since BIS is the government-approved standard for hallmarking of gold, the BIS mark on gold certifies that the purity of that particular piece of gold has been verified at one of the BIS labs. You can rest assured that the purity of the gold you are looking to buy has been verified already if the BIS mark is on it.
Assaying and Hallmarking Centre’s Mark:
You can also look out for the mark of the assaying and hallmarking centre at which the particular piece of gold has been assayed. You can cross-verify the centre’s number against the list of laboratories certified by the BIS through their website.
Jeweller’s Identification Mark:
Regardless of whether you purchase gold from a physical store, the store will leave an identification mark on the gold product. This can help you check the purity of the gold you purchase.
Perform a Home Test:
Several different methods are available to those who wish to verify the purity of their gold. A home kit is also available for those who wish to perform this test several times at home. The kit includes stones that you can rub against the gold to verify its authenticity. Additionally, you will receive nitric acid in varying concentrations, which you can pour on the gold item to verify its purity.
Gold is often considered as adequate collateral by banks and other financial institutions. You can place the gold with the lending authority as collateral and avail a loan against it. The value of the loan will depend entirely on the amount of gold you are offering as collateral. It is important that you assess the purity and weight of the gold you wish to use as collateral before you take it to a lender though.
It is difficult to say for sure without keeping a close eye on international trends and the price of gold in the international market.
Aside from checking for the gold rate in Trichy today, it is also important to check the purity of the gold, the buy-back terms, and the certification available with the gold.
It is possible and recommended that you check the gold’s purity before you purchase it. You can look for identification marks that authenticate its purity or you can use a home kit to verify the purity.