Gold rate in Bhiwandi

Bhiwandi is a city in the Thane district of Maharashtra, India. It is known for its textile industry and is considered one of the largest power loom weaving centres in the country. In recent years, Bhiwandi has also emerged as a hub for gold investment due to the presence of several gold dealers and jewellery shops.

Investing in gold has become a popular option for many people in Bhiwandi due to its perceived stability and reliability as an investment asset. Gold can serve as a hedge against inflation, currency fluctuations, and political and economic uncertainty, making it an attractive option for those seeking to diversify their portfolios.

Assessing the Purity of Gold in Bhiwandi

Gold purity is measured in Karats (K), with 24K being the purest form of gold. 24K gold is 99.9% pure and is commonly used in the production of coins and bars. Because 24K is too soft, it cannot be used to make jewellery. As a result, 22 parts pure gold are mixed with 2 parts other metals such as silver, copper, and zinc, resulting in a harder and more durable alloy. This gold is referred to as 22-karat gold or 916 gold (owing to its purity).

Gold may also bear specific stamps such as 999, 916, 750, and so on. These stamps represent the purity of gold:

• 999 - 99.9% purity - 24K gold
• 916 - 91.6% purity - 22K gold
• 750 - 75% purity - 18K gold
• 585 - 58.5% purity - 14K gold

Gold Hallmarking

The Bureau of Indian Standards (BIS) is a government body that authenticates the purity of gold. The process of certifying gold is termed hallmarking. Hallmarking is done primarily to protect consumers from adulteration and to ensure that manufacturers maintain legal standards of purity and fineness. The four main elements that you should look for in hallmarked gold jewellery are as follows:

1. BIS Mark or Logo
2. Purity and Fineness of Gold
3. Mark or Number of Assaying and Hallmarking Centre
4. Jeweller's Identification Mark or Number

Alternatives to Physical Gold in Bhiwandi

A significant number of people look for jewellery stores in Bhiwandi to purchase gold jewellery, coins, bars or bullion. But this yellow metal can be purchased in different forms apart from physical gold. A few of them are: 

• Sovereign Gold Bonds (SGBs): These are government securities denominated in grams of gold. They provide capital appreciation and interest each year. They serve as a replacement for holding physical gold. They can be purchased at the time of issue and redeemed for cash upon maturity. 
• Gold Exchange-Traded Funds (ETFs): They are open-ended, commodity-based mutual fund schemes that invest in gold assets and track fluctuating gold prices. One unit of gold ETF equals one gram of gold having 99.5% purity. 
• Digital Gold: Various payment platforms like PhonePe and PayTM allow the option to invest in digital gold, which is stored in digitised form. You can invest for as less as ₹1.
• Gold Mutual Funds: Mutual funds that invest directly or indirectly in gold reserves are referred to as gold funds. The most popular investment options are gold physical assets and mining company stock.

Investing in these alternatives eliminates the hassle of storing gold assets and keeping them secure against theft or loss. These investments are held in dematerialised or electronic form.

Critical Factors Affecting Gold Rate in Bhiwandi

1. Inflation - Since gold holds a considerable value, it is widely used to hedge against rising inflation. During these times, investors prefer to invest in this precious metal rather than holding on to currency.
   Therefore, during times of high inflation, there is a more significant demand for gold. The scenario applies to both global inflation and inflation across India. As a result, the gold rate in Bhiwandi rises. 
2. Global Movement - India is one of the biggest importers of gold. Therefore, any fluctuations in the global prices of gold impact gold prices in Bhiwandi.
   During times of political turmoil, the value of various financial products and currencies may take a big hit. More people want to invest in gold during such times. Therefore, political chaos increases the demand for gold, leading to rising prices. 
3. Government Gold Reserves - Most countries hold gold alongside their currency reserves through their central banks. Two significant examples are the Reserve Bank of India (RBI) and the US Federal Reserve. As the central banks start holding more gold, demand exceeds supply, and prices increase. 
4. Demand during Festive Seasons - Gold has a traditional value in Bhiwandi. Most people tend to buy huge amounts of gold during auspicious occasions like festivals and weddings. Since the supply of gold is fixed, but the demand rises during these events, gold prices tend to increase significantly.

Many other factors may contribute to fluctuations in the gold rate in Bhiwandi, such as changes in import duty, stock market volatility, currency fluctuations, etc. However, the most critical aspect related to this yellow metal is supply-demand. A rise in the demand for gold may directly boost its rate.