Gold Rate Dehradun
Last updated on: 2nd Jun 2023 03:41 AM
Nestled in the scenic Doon valley, Dehradun is the capital of Uttarakhand. It is also a popular education hub. It serves as a gateway to popular hill stations like Nainital and Mussourie. The business heartland of Uttarakhand, Dehradun, attracts people from all corners of the state.
As in most cities of India, the people of Dehradun buy gold to celebrate festive occasions. They also see it as a holistic approach to wealth creation. Various factors impact gold rates in the city. So, before you make a purchase decision, here's everything you need to know about gold rates in the city.
Traditionally, gold was purchased in the form of jewellery, bars, and coins. In recent times, newer avenues have also emerged. So, here's a look at various ways to invest in gold in Dehradun:
Buying gold jewellery during religious festivals and weddings is the most common way to invest in gold in India. However, there are some flipsides to purchasing jewellery. For instance, hefty making charges may weigh heavily on your wallet. In addition, due to constant changes in fashion trends, the design of a jewellery piece might get outdated in a few years.
Hence, jewellery is an excellent investment option when bought for immediate use. But there are several other forms of gold investments that are worth considering.
You can purchase gold bars or coins from jewellers, banks, Non-banking Financial Companies (NBFCs) and e-commerce platforms. These coins come in various finishing, designs and sizes. Moreover, the making charges are significantly lower than for gold jewellery.
Gold ETFs are mutual funds that invest in gold bullion. Each unit here represents physical gold in dematerialised form. One ETF unit is equal to one gram of gold. Moreover, these passive investments are traded on stock exchanges. Hence, to invest, you must have a Demat account. An ETF presents the dual advantage of gold investments and exposure to stock markets.
Here are two reasons why ETFs are getting popular:
Since you can purchase and sell ETFs in cash, there is complete transparency.
ETFs are held in electronic form in Demat accounts and thus do not demand added storage.
A gold mutual fund is another popular way to invest in gold in Dehradun. These funds invest in companies that deal in gold in some form. Managed by professional fund managers, the underlying asset of a gold mutual fund is physical gold. Hence, fluctuations in gold prices in the market impact the Net Asset Value or NAV of the funds.
Other than being an investment option and jewellery, gold has many qualities. Below are some interesting facts about gold:
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|31 May 2023|
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|26 May 2023|
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When you purchase gold, you must know ways to evaluate its purity. There are different ways by which you can find out if your gold is pure or not. Some of them include the following:
Any piece of BIS-hallmarked jewellery carries the BIS logo, denoting that its purity has been verified. This logo appears on every piece of gold jewellery or coins you purchase. The BIS is India's only government-approved agency for hallmarking gold objects of all kinds to guarantee their purity.
The purity of gold is evaluated in two ways: Karat (represented as K) and fineness number. The 24K gold is too soft and flexible for jewellery; thus, gold is mixed with silver and zinc to create a more sturdy form of gold. The fineness number is evaluated in parts per thousand. The other way is to determine the purity of gold in ornaments. World Gold Council website states that 24K gold means that all its parts contain gold with minor impunities. It can only be refined to 999.9 parts per thousand.
The gold should also have an authorised jeweller's identification mark. This mark guarantees that the gold is from a trustworthy source. The mark is useful in the event of a dispute.
The demand and supply of gold can influence its price in Dehradun. Like most products, a high demand but low supply increases the rates and vice versa. For instance, during festivals, the demand for gold is especially high. This leads to a surge in the price of gold in Dehradun.
Gold and the US Dollar (USD) are inversely related. Since gold and bullion trade is carried out in USD, the dollar's value impacts gold rates. When the value of the US dollar falls, gold prices rise, and when the dollar strengthens, the gold rates drop.
Government regulations on taxes and duties impact gold rates. For instance, the implementation of GST (3%) has increased tax rates for gold. In addition, the tax charged by the local government also influences gold rates in Dehradun.
The change in gold price is usually directly proportional to inflation; that is, higher levels of inflation cause gold prices to rise due to falling currency values. Since gold's value remains stable over time, people usually prefer to keep their wealth in gold during inflation, which increases its demand. As a result, gold is also considered a hedging tool against inflation.
The RBI holds gold reserves, and the gold price increases when it holds more gold than it sells. This results from the market experiencing an increase in cash flow and a shortage of gold.
Gold prices rise during weddings and festive periods like Diwali due to higher consumer demand. Increased prices arise from a demand-supply imbalance. The requirement for gold is not limited to jewellery. Modern electronic companies use gold in small quantities to manufacture devices such as televisions, computers, GPS units, etc. The total demand forces the government to import more gold.
Disclaimer: Wint Wealth makes no guarantee or warranty on the accuracy of the data provided on this site, the prevailing rates are subject to change with market value and are provided on an as-is basis. Wint Wealth has no commercial interest or gain in or from the actions resulting from the information displayed on this page. Nothing contained herein is intended to or shall be deemed to be investment advice, implied or otherwise. You are advised to make your own enquiries, consult a professional advisor and verify the information prior to taking any investment decisions. We accept no liability for any loss arising from the use of the data contained on this website.