Gold rate in Bhilai

The industrial town of Bhilai Nagar is the second largest urban area in Chhatisgarh. It is located in the Durg District and has a rich cultural heritage and demography. Like most Indian cities, gold has traditionally been esteemed in Bhilai Nagar, both as jewellery and as an investment instrument.

The locals buy gold in the form of jewellery and bullion throughout the year in Bhilai Nagar. 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 Nagar. Continue reading to explore the various factors influencing gold prices in Bhilai.

Factors Impacting Gold Rates in Bhilai Nagar

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.

Taxes on Gold in Bhilai Nagar

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.

Gold Purity in Bhilai Nagar

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.

Alternatives to Gold Jewellery in Bhilai Nagar

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.