Gold Rate Today in Bhilai

The industrial town of Bhilai is the second largest urban area in Chhatisgarh. It is located in the Durg District and has a rich cultural heritage and demography. Its combination of industry, culture, and nature makes it an interesting and attractive place to visit. It is also a hub of industry and commerce in the region. 

Whether you're a seasoned investor or new to the game, gold is a valuable addition to your portfolio. Like most Indian cities, gold has traditionally been esteemed in Bhilai as jewellery and investment instruments.

The locals buy gold in the form of jewellery and bullion throughout the year in Bhilai. However, the demand for gold is highest during festive seasons such as Diwali, Dussehra, Dhanteras, etc. The continuous changes in buying patterns of gold influence the prices of gold in the city.

Besides festivities, other factors also impact gold prices in Bhilai. Continue reading to explore the various factors influencing gold prices in Bhilai.

Taxes on Gold in Bhilai

The price of gold in Bhilai Nagar contains the following taxes:

1. Import Duty: An import duty of 12.5% is charged on gold imported into the country.
2. Agriculture Infrastructure Development Cess: 2.5% of AIDC is charged on imported gold. 
3. GST: The GST rate on gold is 3%
4. GST on making charges: When the physical gold is made into jewellery, it attracts making charges. A GST rate of 5% is to be paid on these making charges.

How To Check The Purity Of Gold In Bhilai?

Here are a few ways to check the purity of gold in Bhilai:

• Look for the hallmark

In India, the Bureau of Indian Standards (BIS) is responsible for hallmarking gold jewellery. The hallmark is a mark stamped on the jewellery that indicates the purity of the gold. You can look for the hallmark on the jewellery to determine its purity. Common hallmark stamps for gold include 10K, 14K, 18K, and 24K, with the higher numbers indicating a higher purity of gold.

• Use a gold testing kit.

Gold testing kits are available at jewellery stores and online. These kits use a chemical process to determine the purity of the gold.

• The purity of gold is measured in karats. 

24-karat gold is the purest form, containing 100% gold. However, it is hard to make jewellery with it because it is soft. So usually, 22-karat gold is used to make gold jewellery. This contains 22 parts gold and 2 parts copper, silver, nickel, and zinc alloys. It is also called 916 gold, equivalent to 91.6% gold. The price of 916 gold is calculated by multiplying 0.916 by the price of 24 karat gold. Further, 14 and 18-karat gold is used to make designer jewellery.

Gold Purity in Bhilai

You can verify the purity of gold through the hallmark given by the Bureau of Indian Standards (BIS). If you are looking to buy gold in Bhilai Nagar, check the hallmark before buying it. 

All registered jewellers are required to stamp gold articles with the hallmark and the gold karats. There are chances of being defrauded in the purchase of un-hallmarked gold. 

The purity of gold is measured in karats. 

24-karat gold is the purest form, containing 100% gold. However, it is hard to make jewellery with it because it is soft. So usually, 22-karat gold is used to make gold jewellery. This contains 22 parts gold and 2 parts alloys of copper, silver, nickel, and zinc. It is also called 916 gold, as it is equivalent to 91.6% gold. The price of 916 gold is calculated by multiplying 0.916 by the price of 24 karat gold. Further, 14 and 18-karat gold is used to make designer jewellery.

Who Decides The Gold Rates In Bhilai?

The Indian Bullion and Jewellers Association (IBJA) is a trade association representing the interests of gold dealers in Bhilai. It does not directly determine the price of gold. However, it does provide a daily reference gold price in Bhilai based on the market rate. 

The IBJA reference price is based on the price of gold in the international market and the rupee/dollar exchange rate. It is used to settle gold transactions between buyers and sellers. However, it is crucial to note that the actual price of gold in Bhilai may vary. 

In addition, other organisations determine the price of gold. It is a result of the interactions of all the participants in the market, including central, commercial, investment banks, hedge funds, and retail investors. 

Alternatives to Gold Jewellery in Bhilai

When 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 as discussed below:

1. Sovereign Gold bonds: The government launched this programme that allows the general public to purchase gold by purchasing government bonds. Various gold bonds are issued from time to time by the Reserve Bank of India.
   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. 
2. Gold ETFs: An exchange-traded fund (ETF) that tracks the domestic physical gold price is known as a gold ETF. They are passive investment tools that invest in gold bullion and are based on gold prices.
   In a nutshell, Gold ETFs are securities that represent physical gold, either in the form of paper or in a dematerialized form. You can even invest in decimals of gold quantity, such as 0.02 grams, etc. These ETFs are 100% backed by physical gold. 
3. Gold Futures: Gold futures are standardized, exchange-traded contracts in which the buyer agrees to take delivery of a particular amount of gold at a predetermined price in the future.

KDM and Hallmarked Gold in Bhilai 

KDM is a type of gold that is commonly used in Bhilai. It refers to gold that has been melted and formed into a bar. KDM gold is often alloyed with other metals to increase its strength and durability.

Hallmarked gold is certified by a government agency as meeting specific standards for purity. In India, the Bureau of Indian Standards (BIS) is responsible for hallmarking gold. To be hallmark certified, gold must meet certain purity standards. Also, it must be tested by a BIS-approved laboratory. Hallmarked gold is considered to be of higher quality than non-hallmarked gold. So, it is often more expensive than KDM gold.

So, it is important to note that KDM and hallmarked gold differ. KDM gold can be hallmark certified, but it is not necessarily guaranteed.

Factors Impacting Gold Rates in Bhilai

Like the rest of India, gold rates in Bhilai Nagar depend on various factors. Here are the factors impacting the gold rate in Bhilai Nagar: 

• Global demand and supply fluctuations also impact gold prices in Bhilai. 
• Most of the Indian gold demand is met through imports. Therefore, changes in rupee value compared to the US dollar and other currencies cause a movement in the price of gold in Bhilai Nagar.
• The price of gold in Bhilai Nagar also includes customs duties and banker's and dealer's margins. A government announcement changing these duties will impact the prices of gold. 
• Gold prices vary from one state to another based on the following:
  • Cost of transporting gold
  • Security protocols followed by the state
• Gold surges in value when the stock market falls. Similarly, an increase in inflation also causes gold prices to go up. This is because gold is seen as a safe haven when the economy is volatile. 
• Further, festive seasons such as the period around Diwali and Dhanteras, witness an increased demand for gold in Bhilai and India in general. This also causes the prices to go up.
• Periods of increasing interest rates also see a fall in gold prices as people prefer to invest in high-interest-rate paying instruments instead of gold.