Gold Rate Today in Bhadrak

Bhadrak is a city in the state of Odisha, India. It is known for its rich cultural heritage and has a long history of gold trading and investment. The city is home to several gold shops and jewelry stores where residents can buy and sell gold bullion, coins, and jewelry. Additionally, there are various financial institutions in Bhadrak that offer gold investment options, such as gold savings accounts, gold ETFs, and gold bonds. Gold is considered a safe haven asset and is widely used for investment purposes due to its stability and potential for appreciation.

Comparison Between 24K and 22K Gold

24K gold is pure gold. It has a higher value than 22K gold but is also more expensive. Due to the high price of 24K, gold is not used for jewellery or other purposes except for small-sized items like earrings or rings. Most people prefer using 22K gold because of its affordable nature and good quality.

Impact of GST on Gold Rate

The Goods and Services Tax (GST) was introduced in India in 2017. The GST on the value of gold is 3%, and the GST on the making charges of gold jewellery is 5%. The making charge is the cost of producing and designing each piece of gold jewellery you purchase.
Three types of import duties are applicable on gold imports to India - Customs Duty (12.5%), Agriculture and Infra Tax (2.5%), and Social Welfare Surcharge (10% of Customs Duty). Total import duty (excluding GST) is therefore around 15% (12.5 +2.5) + a minimal Social Welfare Surcharge of 10% of Customs Duty (not the gold price).

Who Decides the Gold Rates in Bhadrak?

1. Indian Bullion and Jewellers Association (IBJA): The IBJA is an industry body of bullion dealers that determines the daily gold rates in Bhadrak.
2. International Spot Price of Gold: The gold rates are based on the international spot price of gold which is the price at which gold is traded globally.
3. Import Duty: Import duty is a tax imposed on the import of goods and this factor is also considered while determining the gold rates in Bhadrak.
4. Local Demand for Gold: The local demand for gold in Bhadrak is also considered while determining the gold rates as higher demand for gold can result in higher prices.
5. Transparent Process: The process of determining the gold rates in Bhadrak by the IBJA is transparent and based on market conditions.

It is important to note that gold prices can fluctuate frequently and are affected by various economic and geopolitical factors.

Alternatives to Physical Gold in Bhadrak

Physical gold is the traditional way for the people of Bhadrak to invest in gold. However, owning and buying gold physically can be risky and cost-intensive. Hence, various alternatives have emerged. Let us explore a few of them:

Sovereign Gold Bonds

Gold bonds are government securities denominated in grams of gold. The Reserve Bank of India (RBI) issues the bonds on behalf of the Government. An investor pays the issuing price in cash and redeems the gold bonds in cash on maturity.

Gold Exchange-Traded Funds (ETFs)

A gold ETF is an open-ended mutual fund that tracks the market price of gold. These are units that represent physical gold in dematerialised or paper form. One gold ETF is equivalent to one gram of gold of 99.5% purity.

Gold Mutual Funds

Gold funds are open-ended mutual funds regulated by the Stocks Exchange Board of India(SEBI). Investments are typically made in the stocks of mining firms, physical gold, and syndicates that produce and distribute gold.