Gold rate in Dhamtari

Dhamtari in Chattisgarh is on the banks of Mahanadi and its tributaries. The ancient city was the dwelling of the Chalukyas around the 14th city and is just 300 km from Raipur. The tribal town attracts the maximum number of tourists during the rainy season. A primary attraction in the city is its tribal hamlets and culture, the Ravi Shankar or Gangrel dam which is the most beautiful site at sunset and its temples.

There is a demand for gold throughout the year. However, the people of Dhamtari consider gold purchases auspicious during festivals, so gold rates are generally high during such times in the city.

How is the Purity of Gold Evaluated in Dhamtari?

If you are investing in gold coins, biscuits or bars; choose 24K, which is the maximum purity. However, if you want to buy heavy gold ornaments, you can invest in 22K gold as they are durable, and the jeweller can mould them into intricate patterns. 18K gold is best when you make gold jewellery with diamonds, and other precious stones, for it holds better and protects the stone from falling off.

To evaluate gold jewellery in Dhamtari, checks its hallmark, and you will find the purity grade in the tiny triangular logo. The BIS mark also contains the identification of the hallmarking agency and jewellery and the year of the hallmark.

Impact of GST / Central Bank Policies on Gold Rates in Dhamtari

After the Goods and services tax by the Government of India, gold rates in Dhamtari rose by approximately 0.75%. As per the GST structure, varying tax rates apply on making charges of ornaments and the value of gold.

Taxes applicable as per the GST structure are as follows:

• Gold making charge - 5%.
• On Import - 10%.
• On Gold value - 3%.

Here is how GST rates impact gold purchases in Dhamtari:

As gold importers under the GST regime do not pay the 10% import duty on gold imports, there is an increase in imports. 

As the purchaser must pay GST up to 5% on making charges, investors began to invest in 24K gold coins, biscuits and bars instead of ornaments.

Factors Affecting Gold Rates in Dhamtari

Many factors influence gold rates in Dhamtari. However, the most significant one is demand and supply. Dhamtari has many temples and is a well-known tourist centre that attracts devotees and tourists annually. Thus there is always a demand for gold in the city, and the rates are generally steadily increasing.

Dhamtari's gold market depends on cultural and religious beliefs. The people of Dhamtari buy gold for weddings and festivals,  as they consider it auspicious. But there are times when they believe the gold purchase can bring misfortune, and they refrain from buying the precious metal. Thus gold prices in Dhamtari fluctuate.

Some Interesting Facts on Gold and Gold Rates Dhamtari vs Other Cities

Gold is the much-preferred metal among the people of India. And with the depletion of gold reserves in the country and the heavy demand for it from most cities, including Dhamtari, India imports the precious metal from:

• Switzerland, 
• United Arab Emirates, 
• South Africa, 
• Peru, 
• Ghana 

Here are some interesting facts about gold and gold rates in Dhamtari compared with other cities in India.

• The purpose of Gold purchase in Dhamtari is either as jewellery or as an investment rather than for industrial uses like in some other states and cities in India.
• Gold coins, bars and biscuits are available at the local jewellers or banks in different measures in Dhamtari. However, you can only sell the same to jewellers as banks do not buy back.
• The people of Dhamtari consider gold a safe investment, and even slight distribution in economic or political situations can drastically increase the demand for the precious yellow metal in the state.
• From ancient times the people of Dhamtari have bought gold in the form of gold coins, bars or jewellery. But recently, they have traded in gold by investing in mutual funds, ETFs or stocks that invest in gold or have a relation to gold.
• The people of Dhamtari, who have sound knowledge of gold rates in the city, also trade in gold derivatives through a commodity broker.

Comparison Between 24K and 22K Gold

Gold is in its natural form and has the characteristic gold sheen. It is of maximum purity grade (24K), and its excellent for investment purposes. Gold coins and biscuits comprise 24 parts or 100% gold or 24K gold.

However, it is a malleable metal that is challenging to mould into intricate patterns. Thus jewellers mix 22 parts or 91.67% gold and 8.33% alloy like nickel, copper, silver, etc. Ornamental gold is hence of a lower purity grade or 22K. 

So, a gram of 24K gold is more expensive than a gram of 22K gold. 

Gold Vs Other Investment Options

From ancient times there has been a practice of investing in gold, and investors find it a safe place to park their funds. Here are the reasons why gold is still a better form of investment in comparison with the others : 

• Gold has been serving excellent returns to its investors for the past 5000 years, and no other form of investment has been able to perform anywhere close to the precious yellow metal.
• Gold is comparatively less volatile and the world's most preferred investment option.
• Whenever there is uncertainty, war, devaluation or an economic slowdown, most investments become risky, But gold always stays on top despite such uncertainties.
• Gold is accepted globally and has an excellent purchase power for years.
• There is a steady upward demand for gold which will be the reason for the rise in gold rates, making it a profitable investment in the years to come.