Gold rate in Agra

Agra is the fourth most populous city in the state of Uttar Pradesh and home to one of the world's wonders - the Taj Mahal. The city boasts a rich history and heritage. Agra is also among the top cities in India with the highest tourism.

In Agra, gold is mostly purchased as ornaments and jewellery. Indians generally seek to buy more and more gold because it is regarded as auspicious to do so. Due to a variety of factors, including rising demand for gold and shifting governmental policies, the price of gold in Agartala has constantly been fluctuating. Numerous large and small gold dealers in the city form the backbone of an excellent local market.

Factors Influencing Gold Rate in Agra

• Demand and Supply: The gold rate is directly proportional to demand. The seasonal demand for gold in Agra, such as during festivals and weddings, drives up the gold prices.
• Import Duty: India imports gold from other countries. Thus, gold is subject to import duties before being available in the local markets for the citizens. Any change in the import duties impacts the overall price of gold in Agra.
• US Dollar Exchange Rate: Gold is imported into India by paying in US dollars. The US dollars spent are then converted into Indian rupees for the Indian markets. Thus, the gold price tends to rise when the Indian rupee is underperforming as compared to the US dollar.
• Inflation: Rising costs lead to an increased demand for the yellow metal, which drives its prices higher. Lower interest rates in the economy lead to more inflation, and investors look for alternate investments that fetch higher returns, and gold becomes an attractive choice. The government usually controls inflation by increasing interest rates.

Gold Investment Avenues in Agra

• Sovereign Gold Bonds (SGBs) – Government securities called SGBs are valued in grammes of gold. They serve as alternatives to holding actual gold. The issue price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity.
  The price is determined by the equivalent price of physical gold in grams. It comes with a wide range of benefits, including receiving a fixed annual interest rate in addition to the returns earned by your investment. 
• Gold Exchange-Traded Funds (ETFs) - Gold ETFs work similarly to mutual funds. Each unit of a gold ETF represents one gram of gold having a purity of 99.5%. Gold ETFs trade on major exchanges.
• Digital Gold - E-gold is a new investment plan allowing you to buy gold digitally in smaller denominations. You can purchase digital gold through government-authorised online platforms and use the same platforms to convert the digital gold into physical form when your holding exceeds 1 gram.
• Gold Savings Schemes – You can invest in gold-saving schemes, which are launched by local jewellery stores in Agra. You need to deposit a fixed amount every month for a specific period. When the term ends, you buy the gold at the net value deposited.
  The conversion is based on the gold price at maturity. These gold savings schemes are beneficial when you don’t have a lump-sum amount to purchase a substantial quantity of gold.
• Gold Mutual Funds – Mutual funds that invest directly or indirectly in gold reserves are known as gold funds. Investments are typically made in the stocks of mining companies, physical gold, and syndicates that produce and distribute gold.

What Aspects to Look for While Investing in Gold?

1. Gold Purity - Check the level of gold purity before investing. The purest form of gold is 24K. The higher the purity of the gold you buy, the greater the value of your investment.
2. Gold Rate per Gram - Stay updated with the current price and trends before making a purchase. Many individuals often face the dilemma of finding the right time to invest in gold.
   Investing in the yellow metal when its prices are falling or expected to fall shortly will enhance the value of your investments, as Investing in gold when its rate is low would generate more substantial returns.
3. Hallmarked Gold - The best way to look for purity in your jewellery is to check for the Bureau of Indian Standards (BIS) hallmark. The hallmark states the official proportion of your jewellery. The certificate assures that you have made a legitimate purchase and provides proof of ownership.  

What is 916 Gold?

Gold is available in multiple purity levels apart from 24K in Agra. Pure gold is too soft and delicate in its raw form and is, thus, mixed with metals such as silver, copper and zinc to make it durable and sturdy. 

916 gold is a common term for 22K gold. 22-karat gold has a purity level of 91.6%, meaning that 100 grams of a gold alloy contain 91.6 grams of pure gold mixed with trace amounts of other metals. 916 gold is considered the best option for making intricate jewellery designs. Due to the softness of 24-karat gold, it is not used to make jewellery.