Gold Rate Today in Ambarnath

Ambarnath is located in the Thane district of Maharashtra. It is popular for its manufacture of machine tools and has a rich cultural heritage and demography. Like most Indian cities, gold is a traditionally revered instrument of investment in Ambarnath. While the locals buy gold both as jewellery and bullion throughout the year, the demand is highest during the festive season.

Taxes on Gold in Ambarnath

The price of gold purchased by you in Ambarnath contains the following taxes:

Import Duty: An import duty of 12.5% is charged on gold imported into the country. 

Agriculture Infrastructure Development Cess: 2.5% of AIDC is charged on imported gold. 

GST: The GST rate on gold is 3%

GST on making charges: When physical gold is made into jewellery, it attracts making charges. A GST rate of 5% is to be paid on these making charges.

Gold purity refers to the amount of gold present in a gold item, expressed as a percentage of the total weight. The higher the purity, the more gold the item contains and the more valuable it is.

Gold purity is typically measured in karats (kt). One karat is equal to 1/24 of the weight of gold, so 24-karat gold is pure gold. The purity of gold is also sometimes expressed in millesimal fineness, which is a measurement of the purity of gold in parts per thousand. For example, a gold item with a purity of 750 has 750 parts of gold out of 1,000 parts, which is equivalent to 18 karats.

The most common purities of gold are:

• 24-karat gold: This is the purest form of gold, with a purity of 99.9%. It is too soft and fragile to be used in jewelry and is typically used for investment purposes.
• 22-karat gold: This gold has a purity of 91.67%, with the remainder consisting of other metals such as copper, silver, or zinc. It is commonly used to make jewelry because it is stronger and more durable than pure gold.
• 18-karat gold: This gold has a purity of 75%. It is less pure than 22-karat gold and is also commonly used to make jewelry.
• 14-karat gold: This gold has a purity of 58.5%. It is less pure than 18-karat gold and is also commonly used to make jewelry.
• 10-karat gold: This gold has a purity of 41.7%. It is the lowest purity of gold that is considered to be "real" gold in the United States.

Alternatives to Gold Jewellery

There is one problem with using gold jewellery as an investment - you end up paying 'making charges' which are not recovered on the sale of the very same articles. Consequently, the profitability of gold declines. Therefore, you can choose to invest in different alternatives:

• Gold biscuits or coins: They are available at most local jewellery stores and are the second most common form of gold investment in Ambernath, next to jewellery.
• Sovereign Gold bonds (SGBs): Various gold bonds are issued from time to time by the Reserve Bank of India (RBI). These bonds are denominated in grams of gold. The owner receives an interest payment of 2.5% on a semi-annual basis. At maturity, the bond can be redeemed at the then price of 24-karat gold. 
• Gold Exchange-Traded Funds (ETFs): You can invest in gold ETFs which are issued by various fund houses. Through these, you can even invest in decimals of gold quantity, such as 0.02 grams. These ETFs are 100% backed by physical gold. 

Factors Impacting Gold Rates in Ambernath

1. Global demand and supply play a key role in gold price determination. When the demand increases, the prices go up.
2. Since most of the gold demand in India is met through imports, changes in the Indian rupee with respect to the dollar and other significant currencies affect the prices of gold in Ambernath.
3. The price of gold in Ambernath also includes customs duties, and bankers’ and dealers' margins.
4. Within India, gold prices vary from one state to another based on the cost of transporting gold and the security protocols followed by the state. Therefore, gold is slightly cheaper in port states as compared to other states in India.
5. When the stock market falls, gold prices tend to surge. This is because gold is used as a hedging instrument against equity-based instruments.
6. Similarly, periods of increasing interest rates see a fall in gold prices as people prefer to invest in high-interest-paying instruments.
7. Accumulation of gold by the central bank also causes the prices to increase.
8. Festive seasons such as the period around Diwali and Dhanteras witness an increased demand for gold. This also causes the prices to go up.