Gold Rate Today in Farrukhabad

Farrukhabad is a culturally rich city in Northern India, flourishing in sugar, potato, and sunflower production. Gold is commonly bought in Farrukhabad as a hedge against unforeseen situations, financial emergencies, and inflation - particularly by those engaged in the agricultural business. It is famous for being a historical and religious place. Farrukhabad is the administrative headquarter of the Farrukhabad tehsil. Gold in Farrukhabad is mainly used for jewellery and investment purposes. It is a comparatively safer investment choice for beginners.

In this blog, we will discuss the gold rates and trends in Farrukhabad and answer some of the frequently asked questions about gold in Farrukhabad to help you make better decisions before investing in gold.

How is the Purity of Gold Evaluated in Farrukhabad?

In India, the Bureau of Indian Standards (BIS) is a government authority that checks the purity of gold. Specific factors that should be considered before investing in gold are as follows.

1. BIS Mark
   BIS mark is important to check that the gold is Hallmarked. Since BIS is the only authorised laboratory in India for gold certification, the logo should always be in gold.
2. Karat
   Karat is a scale to measure gold's purity. While 24-karat gold is the purest, it is too soft for use. Hence, other metals and alloys are added to the gold. So, the gold for jewellery in the market is mainly 22 Karat. 
3. Jewellers Identification Mark
   The gold you buy should always carry an identification mark by an authorised jeweller. This gives the gold credibility and helps ensure that the gold is from an authorised store. The mark can be helpful in case of any dispute or crisis.

Other methods to determine the purity of gold in Farrukhabad are:

• Check for the karat value of the gold as stamped on the jewellery. For example, if you see a marking “18kt”, your piece contains 18 parts gold and 12 other metals; this karat value also translates to 75% gold content.
• The jewellery store where you purchase your gold jewellery will also place an identification mark on it. BIS provides a list of jewellers who sell certified gold, which can be found on their website.
• For jewellery made before or on 31st December 2016, you can also determine the purity of gold by the year of manufacture marked on the jewellery with a letter. For instance, the letter 'A' was used for the year 2000 and the letter 'J' for the year 2008.

How Does the GST Affect the Gold Rates in Farrukhabad?

In Farrukhabad, just like the rest of the country, purchasing Gold jewellery is subject to a 3% GST on the value of gold. 5% GST is levied on making charges for gold jewellery, coins, biscuits, etc. However, if you sell your old gold jewellery and buy new jewellery simultaneously, you won't have to pay tax.

Prior to the implementation of 3% GST on gold, the effective tax rate on the value of gold was 2% (1% VAT + 1% service tax), so GST implementation on gold has only marginally increased the price of gold for gold buyers.

Since the value of gold is dynamic and might seem expensive at first, with the added GST acting as a factor, people still prefer to invest in gold compared to other options.

Some Interesting Facts on Gold

Here are some interesting facts about gold in Farrukhabad:

• Farrukhabad is also one of the cities famous for zardozi. Originally from Persia, zardozi embroidery is a popular form of embroidery in India.
• Delicate embroidery is done with golden thread, which is a gold alloy. Melted ingots are forced through perforated steel sheets to form a fine wire, which is then flattened by hammering.
• A single ounce of gold may be pulled into a 50-mile-long wire thanks to the metal’s malleability.
• Approximately half of all gold produced today is used to make jewellery, which remains the single most important use for gold.
• Since the California Gold Rush, more than 90% of the world's gold has been extracted.
• Until 1912, Olympic gold medals were made of pure gold. Currently, they must include at least 6 grams of gold and at least 92% silver.
• The melting point of gold is 1,947ºF (1,064°)C.

Alternative Gold Investment Options in Farrukhabad

Farrukhabad, like any other city, provides a variety of gold investment prospects and modes apart from regular physical gold. The most popular alternatives are:

1. Gold Exchange-Traded Funds: Gold ETFs track the domestic gold price via an exchange-traded fund (ETF). The instruments invest in gold bullion and are passive investments based on gold prices. Essentially, gold ETFs are units that represent physical gold, either in paper form or dematerialized.
2. Digital gold: Available to buy online, one can begin investing in digital gold by investing in tiny sums of money and storing gold in an insured locker. If you need physical gold, you may have it delivered to your house in the form of coins or gold bars.
3. Gold mutual funds: These are mutual funds that are managed by various asset management companies (AMCs) and predominantly invest in gold ETFs. Gold funds are known as mutual funds that invest directly or indirectly in gold reserves. Investments are typically made in the stocks of mining companies, physical gold, and syndicates that produce and distribute gold.
4. Sovereign Gold Bonds (SGBs): The Reserve Bank of India (RBI) issues these bonds regularly and are available for purchase through leading public and private sector institutions. While returns are related to the price of gold and guaranteed by the GOI, physical gold is not an underlying asset.