Gold Rate Today in Faridkot

Faridkot is a town in the Indian state of Punjab. The town is named after a famous poet, Baba Farid. It is known for its sewing machines and machine tools manufacturing. Like any household in India, people in Faridkot purchase gold mostly during auspicious occasions such as marriage.

Gold has been regarded as a precious metal since ancient times. Due to its bright yellow colour, it is perfect for jewellery making. If you want to invest in gold or purchase gold jewellery, you should be aware of the latest gold rates in Faridkot. Read on to learn more about these factors.

Comparison Between 24K and 22K Gold

If you are new to the gold market, the numbers like 24-karat or 22-karat gold must have been confusing. Here is the difference between the two types of gold to help you decide which one to buy.

24K Gold

24K gold is the purest form of gold available in the market. Pure gold is gold which doesn’t consist of any other metal alloy and is hundred percent gold. Though it is considered that there will be some impurities, this is why it is said to be 99.99% pure gold.

This type of gold is soft and is not suitable for making jewellery. Therefore, this grade of gold is used for investment purposes. Usually, gold bars and coins or other investment-purpose gold articles are made out of 24K gold. It also has application in medical and electrical devices, which needs 24K gold to function.

22K Gold

This gold type is mixed with other metal alloys such as zinc, silver, or copper. It is the second purest form of gold available in the market, as it contains 22 parts of pure gold and two parts of other metal alloys. In terms of percentage, it is 91.6% pure gold and 8.4% impurities.

It is duped with other metal alloys, as they add sturdiness to the metal, making them suitable for jewellery. Therefore, if you are looking to purchase gold jewellery, then purchasing 22K gold is a better choice.

How is the Purity of Gold Evaluated in Faridkot?

The purity of gold is presented in the form of karats (K) or parts per thousand. To ensure the fair trade of gold and save consumers from fraud, a government organisation called the Bureau of Indian Standards (BIS) was formed. This bureau is responsible for checking and evaluating the purity of gold. According to government laws, every piece of gold must be checked by BIS. Every piece of gold passed through BIS will have the stamp of the bureau and purity of gold engraved in the gold object.

To save yourself from any fraudulent activity regarding gold, look for the following on the gold piece.

• Stamp of The Bureau of Indian Standards (BIS)
• Purity or Fineness grade
• Six Digit Alpha-Numeric Code

You should purchase the piece of gold only if you can find these signs in your gold piece. If any of it is missing, then there is a probability that it is fake.

GST Impact on Gold Prices in Faridkot

• GST rate applied to gold: 3% (as of 2021)
• Overall demand for gold in the market
• Economic conditions (such as inflation, exchange rate)

The GST rate applied to gold is one factor that determines the overall price of gold in Faridkot, and it is currently fixed at 3%. The overall demand for gold and economic conditions such as inflation and exchange rate are other factors that can also affect gold prices in Faridkot and other places.

Factors Affecting Gold Rates in Faridkot

Gold rates in Faridkot are changed on an almost daily basis. Some of the factors that affect the rates of gold are:

Demand and Supply

One of the major reasons behind the premium price of gold is its supply. Since there are limited gold reserves throughout the globe, supply is always limited. Due to this, if the demand for gold rises, metal prices also hike. Therefore, before making an investment decision, look at the demand and supply of the metal.

Import Costs

Due to the lack of gold reserves in the city and the country, most of the demands for gold are met through import. Due to this fact, import costs have a direct effect on the rates of gold. In simple terms, if import duties or the cost of shipping increases, the rates of gold will also increase.

State Taxes

The rate of gold can also vary from state to state. It is because a different taxation system is applicable in different states.

Seasonal Demand

The demand for precious metal gold is the highest during auspicious occasions like dhanteras, Diwali, wedding season, and other occasions. A huge spurt in the requirement for the metal is noticed during this period, which results in the increased price of the metal. Since this demand is only seasonal, the rate can be expected to drop after the demand goes back to normal.