Gold rate in Bareilly

Renowned for its 'Zari zardozi' intricate work and fast emerging as a hub for fashion designing, Bareilly is the kind of place where gold is an extension of its cultural celebrations. Popular opinion holds that gold is generally a safe investment, particularly during political or economic unpredictability. While the price of gold swings during wars and global conflicts, many other factors influence gold prices too.

Bareilly, located in Uttar Pradesh, serves as a hub for furniture production and cotton, cereal, and sugar trade. The city draws pilgrims and travellers, who are drawn by its religious landmarks such as the Nath Nagri (or Land of Lord Shiva) and Ala Hazrat. 
 

Factors Influencing the Price of Gold in Bareilly

The price of gold in Bareilly is affected by the main factors listed below.

Rupee-Dollar Impact

Understanding how the rupee-dollar relationship impacts India's gold price is essential. Since most physical gold is imported, a depreciation in the price of gold in terms of the rupee will result from a decline in the value of the rupee relative to the dollar. As a result, the rupee's decline may harm the demand for gold in India.

Interest in Fixed Deposits

For Indians, a fixed deposit is a preferred investment choice. Investors favour gold as a substitute investment when FD rates are falling. As a result of decreasing interest rates in Fixed deposits, the gold price grows as people tend to invest in it.

Economic Steadiness

Because gold is seen as a stable asset, its price tends to rise during economic downturns. Investors divert their capital away from riskier investment avenues and toward gold. Additionally, gold has a high level of liquidity and maintains its high value throughout unstable periods.

Seasonal Cost

Gold prices in Bareilly typically climb with heightened demand around auspicious festivals, wedding seasons, and other events.

Inflation

During times of inflation, gold prices frequently increase. This trend drives up the price of gold since it is purchased as a hedge against inflation.

Demand-supply

Demand-supply gaps also impact gold prices. Gold is imported in significant amounts to suit the astronomical demand. Similarly, gold prices rise when there is a shortage of metal globally.

Understanding the fineness and purity of gold in Bareilly

In Bareilly, the fineness and purity of gold are usually expressed in terms of karats. Karats are a unit of measurement used to describe the proportion of gold in an alloy. The higher the number of karats, the higher the proportion of gold in the alloy and the greater the purity of the gold.

In Bareilly, gold is generally available in the following karats:

• 24 karat (pure gold)
• 22 karat (91.6% gold, 8.4% other metals)
• 18 karat (75% gold, 25% other metals)
• 14 karat (58.5% gold, 41.5% other metals)

It is important to note that the karate of gold indicates the proportion of gold in the alloy and not the weight of the gold. For example, a piece of jewelry made of 18 karat gold will contain 18 parts gold and 6 parts other metals, but the weight of the gold may vary depending on the size and design of the piece.

In India, the Bureau of Indian Standards (BIS) is responsible for setting standards for the quality and purity of gold and other precious metals. The BIS hallmark is a certification mark that indicates that a piece of gold jewelry has been tested and meets the standards set by the BIS. Gold jewelry that bears the BIS hallmark is considered to be of high quality and purity.

Comparison Between 24K and 22K Gold

Here is the comparison of 24-karat and 22-karat gold in Bareilly

Purity

• 24K gold is 99.9% pure.
• 22K gold is roughly 91% pure, with the remaining 9% made up of other metals like copper, silver, and zinc.

Durability

• Jewellery made from 24K gold is not very durable due to its softness.
• Jewellery made from 22K gold is more durable due to the presence of other metals in the alloy, which contributes to its strength.

Cost

• 24K gold is generally more expensive due to its high purity.
• 22K gold is typically less expensive compared to 24K gold.

Purpose

• 24K gold is often used for investment purposes because of its high purity.
• 22K gold is more commonly used for making jewellery due to its increased durability and resistance to wear and tear.

It's worth noting that both 24-karat and 22-karat gold have their own unique properties and can be suitable for different purposes. For example, 24-karat gold is often used to make coins and bars for investment, while 22-karat gold is more commonly used for making jewellery because it is more durable and resistant to wear and tear. Ultimately, the choice between the two will depend on the specific use and the personal preferences of the buyer.

Impact of GST on Gold Rate in Bareilly

Gold prices in Bareilly increased with the implementation of the Goods and Services Tax (GST). Before GST, buyers used to pay a 10.% import duty, a 1.0% customs fee, and a 1.2% value-added tax (VAT) on the purchase of gold. Purchasers must now add 3% GST and a 12.5% import duty to purchase gold. 

Therefore, the GST amount is greater than the sum of the customs charge plus the VAT. Additionally, you must pay 5% more in making charges on top of the gold price.