Traditionally, the people of West Bengal have had much affinity to the precious metal. The demand for gold in West Bengal has always been high. Their investments in gold have primarily been in the form of ornaments, jewellery and even gold coins. With the advent of electronic forms of gold, the urban population of West Bengal has been gradually shifting in the direction of using gold as an investment too, but without the hassles associated with storing it in its physical form.
Checking the current rate of gold in West Bengal should be the first step if you’re thinking of buying gold there. This rate is fixed for that particular day across the entire state. Hence the WB gold rate on the day you decide to buy gold is the one that would be applicable on your purchase.
24 carat gold is the purest form of gold, with 99.9% purity levels. It is preferred in the form of bars, biscuits, and coins as a mode of investment. If you wish to purchase 24 carat gold, then the 24 carat gold rate in West Bengal: ₹ 4,980 per gram.
While slightly less pure, 22 carat gold is more prevalent in West Bengal since it is commonly used in making jewellery and ornaments. The 22k gold price today in West Bengal is ₹ 4,710 per gram.
The Goods and Services Tax is applicable on all precious metals, including gold. So, the actual price that you will need to pay is a combination of the current gold rate in West Bengal with 3% GST added over it. In case you are buying gold jewellery, then there would be making charges applied with a 5% GST on the making-charges of the ornaments.
Since time immemorial, gold has been considered a stable form of investment. Even when the economy and markets are in turmoil, gold is considered a safe bet that keeps increasing steadily over the years. The mindset in West Bengal is no different, and people here keep gold as part of their investment strategy. In rural areas, this is predominantly in the form of physical gold. In the urban centers, with deeper internet penetration, more and more people have started making gold as part of their investment portfolio via Exchange-Traded Funds (ETFs) and Sovereign Gold Bonds (SGB). People have also started investing in gold-based Mutual Funds for steady returns and convenient ways of investing like SIP.
To invest in Gold ETFs, you will require a demat account. You can consider an ETF like a fund in which over 90% of the assets are invested in 24 carat gold. However, unlike Mutual Funds, Exchange-Traded Funds are listed and traded on the stock exchange. Hence, the need for having a demat account. The ability to sell them off in the stock market anytime makes them a highly liquid form of investment compared to SGB. Furthermore, since they are in electronic demat form, they are far safer than keeping physical gold at home.
Another safe way of investing in gold without having to own it physically is by buying Sovereign Gold Bonds (SGB). Issued by the Reserve Bank of India and backed by the central government, SGBs are extremely safe and secure. The lock-in period is of 5 years, after which you can choose to opt-out, and the entire bond term is 8 years. These bonds are issued usually twice a year in tranches and can be purchased via government authorised outlets and banks. The price at which SGBs are issued is fixed by the RBI and is independent of the prevailing gold price in West Bengal.
It is not possible for the common person to be able to check the purity of gold being purchased. This can only be done in laboratories. However, to safeguard the interest of the buyers, the Bureau of Indian Standards (BIS) checks and certifies the purity of gold being bought. So, if you’re buying the precious metal on WB gold rate today, then you can be assured of getting adulteration-free gold if it has the BIS mark, Jeweller's identification mark, and Hallmarking Centre's identification mark or number.
Gold in West Bengal is a symbol of high status, wealth and success. It is very common to see brides and families adorned in sparkling gold jewellery during weddings. Gold is purchased during important festivals like Dhanteras, Diwali, Poojo, Akshay Tritiya etc. It is considered auspicious and an invitation to Goddess Lakshmi to bless the home and lives of the people buying it. This demand has steadily increased irrespective of the other socio-economic factors prevalent in the state. “today gold price west Bengal” and “today west Bengal gold price” are some of the most popular search items in the state, giving evidence to the high demand of this metal in West Bengal.
The gold price today in West Bengal is not absolute and is determined as a result of a few factors. Supply and demand being a crucial one. Come the wedding season or around festival times, the demand increases steeply, which raises the price as a result. The percentage of import duties, performance of the Indian rupee versus the US dollar, general inflation, costs of transportation and other such logistics also contribute, in varying percentages, to determine the gold rate today in West Bengal.
Buying gold jewellery is a fun experience for the entire family. Checking out several new designs and shiny ornaments is an exhilarating experience. But in the process, you must also ensure that you get your money’s worth. This can be done by following a few simple steps, as listed below.
Before shopping, check the gold rate today in West Bengal. This will help you decide if this price is higher than in recent times or lower. Clearly, it will be in your interest to buy gold at a lower rate.
Whether you choose to buy gold from a physical store or through an online outlet, you must ensure checking the paperwork and labelling which hallmarks the purity of the metal being bought. The Bureau of Indian Standards is a government body entrusted with forming and implementing rules and guidelines to protect customers from being duped. Each gold item should come with a BIS mark, the mark of the jewellery maker, and a mark or number of the laboratory that has verified its purity.
As mentioned earlier, physical form is not the only way to buy gold. If you are looking at it from an investment point of view, then you can also choose gold ETFs, SGBs or Mutual Funds. In such a case, you must ensure to read the offer documents and terms and conditions thoroughly before investing.
You may be buying gold as ornaments to be worn during a wedding or a festival or simply to park some extra money with a long term investment horizon in mind. In either case, you should be mindful of the above-mentioned aspects to have a smooth and secure transaction. Other than the aforementioned, you also consider:
The gold price in West Bengal is fixed for the particular day for all sellers across all cities in the state. No one should be able to charge you higher than the prevailing rate on the day.
To ensure the purity of the metal being bought, you must insist on seeing the BIS mark and other hallmarks, as described in the previous section. You should also make sure to receive the certificate of purity, including clearly mentioned weight, as part of the final paperwork.
In case of buying jewellery, there will be making charges levied. Then there is the GST, which is 3% for gold and 5% on the making charges. Carefully understand the breakup as mentioned in the invoice and feel free to question the jeweller in case of any ambiguity.
Wouldn't it be easier if there was just one fixed rate for gold? Well, yes, ideally, it would be. But this is easier said than done. This is due to the several forces at play in the background, affecting the final gold rate. Some of these include:
Foreign Exchange Ups and Downs - A significant rise or fall in the strength of the Indian rupee versus the US dollar can have an associated effect on the price of gold.
Change in the Demand and Supply Ratio- Just like any precious commodity, high demand and low supply can make the prices surge instantly, with vice versa also being true. Excessive demand during the festive season, especially around Durga Pooja, sets gold prices sailing high in the state of West Bengal.
Global Crisis or Instability - The global economy is an interconnected network of the economies of all developed and developing nations. Upheavals in the socio-political situation of an influential country or natural disasters and pandemics can trigger a chain reaction, the impact of which can be noticed on gold prices as well.
The rural population of West Bengal buys gold in the form of ornaments or coins and relies on their local sellers and showrooms for its purchase. This is common in the cities as well, but here newer avenues have also become popular; for example, buying gold through online sellers and e-commerce portals. Moreover, gold purely as an investment is also a popular concept in urban West Bengal, with several subscribers to SGB or investors in ETF and MF coming from the state.
The purity of gold is measured in carat, with the purest form being 24 carat. In this form, gold is too soft to be made into craft ornaments. Hence, it is mixed with some other metals and alloys, such as copper or silver. The percentage of alloy used is the reason why you have varying denominations such as 24 carat, 22 carat, 18 carat etc. This is also why today’s gold rate in West Bengal for 22 carat will differ from 24 or 18 carat gold rates.
Exchange-Traded Funds are rapidly becoming a popular way of investing in electronic gold. However, since they are traded in the stock market, a demat account is a mandatory requirement. If you do not wish to open one, you can still invest in gold via Mutual Funds.