Gold Rate Today in Godhra

Godhra is a municipality in the Panchmahal district of Gujarat. Being a demographically diverse and rich region, the demand for gold is high throughout the year. It is a traditionally revered metal here, like in most Indian cities. The continuous changes in buying patterns of gold influence the prices of gold in the city. 

Multiple factors- both national and international impact gold prices in Godhra. Continue reading about these factors

Taxes on Gold

The price of gold purchased by you in Godhra is taxed as follows: 

Import Duty: An import duty of 12.5% is charged on gold imported into the country. 

Agriculture Infrastructure Development Cess: 2.5% of AIDC is charged on imported gold. 

GST: The GST rate on gold is 3%

GST on making charges: When the physical gold is made into jewelry, it attracts making charges. A GST rate of 5% is to be paid on these making charges

Hallmarking charges: Rs 45 per article of gold has to be paid for the hallmarking. Do not try to save on the cost by cutting on hallmarking as it is the guarantor of gold quality in the country

Purity of Gold

The purity of gold is verified through a hallmark issued by the Bureau of Indian Standards. If you want gold in Godhra, do not buy it without checking the hallmark. Registered jewelers only sell hallmarked gold articles. Also, the articles must be stamped with gold purity in karats. You have a high chance of being defrauded on the purchase of un-hallmarked gold. 

Gold purity is measured in karats. 24-karat gold is the purest form with 100% gold.

Comparison between 24-Karat and 22-Karat gold

Due to being soft, it is hard to make jewelry with 24 Karat. So usually, 22-karat gold is used to make gold jewelry. This contains 22 parts gold and 2 parts alloys of copper, silver, nickel, and zinc. It is also called 916 gold as it is equivalent to 91.6% gold. The price of 916 gold is calculated by multiplying 0.916 by the price of 24 karat gold. Due to the softness of pure gold, 14 and 18-karat gold is used to make designer jewelry.

What to check while buying gold in Godhra?

Purity: You must pay as per the purity of gold in karats. 

Making charges: If you buy gold in the form of jewelry, you are charged making charges that might be usually up to 35% of the price of the gold article. These charges are a waste especially if the articles are for investment purposes. Also, these charges are negotiable as they are at the discretion of the jeweler. 

Cost of stones in gold jewellery: A lot of times, gold jewelry containing stones is weighed as is, and the weight of the stone is also charged at the rate of gold. Beware of the fact before deciding to buy this jewelry. Ideally, you should pay for the actual gold used in making the jewelry and pay for the stones as per their rates. 

Do not buy un-hallmarked gold: A hallmark ensures that the gold you are buying is of credible quality. In Godhra, all registered jewelers are mandated to hallmark every gold article.

Alternatives to Gold Jewellery

Sovereign Gold bonds: Gold bonds are issued from time to time by the Reserve Bank of India. These bonds are denominated in grams of gold. The owner receives an interest payment of 2.5% on a semi-annual basis. At maturity, the bond can be redeemed at the then price of 24-karat gold. 

Gold Exchange Traded Funds: You can invest in a gold ETF which is issued by various fund houses. Through these, you can even invest in decimals of gold quantity such as 0.02 grams, etc. These ETFs are 100% backed by physical gold.

Gold Futures: These are gold derivatives that can be traded on exchanges. 

Gold Mutual Funds: These funds invest in gold-linked instruments such as gold bonds, equity of syndicates involved in mining, importing, refining of gold, etc. Being professionally managed, these funds are risk calibrated and may offer high returns.

Factors Impacting Gold Rates in Godhra

• Global demand and supply changes directly impact the [price of gold in Godhra as most of the gold in India is imported
• Currency fluctuations, that is, change in the value of the rupee compared to international currencies like Dollar, Euro and Yen cause gold price changes in Godhra. 
• Gold prices vary from one state to another based on:
  • Cost of transporting gold
  • Security protocols followed by the state

Therefore, there are slight variations in the price of gold in coastal states vs landlocked ones. 

• Gold price surges in value when the stock market falls. Similarly, an increase in inflation causes gold prices to go up. This is because gold is seen as a safe haven when the economy is volatile. 
• Festive seasons such as the period around Diwali and Dhanteras witness an increased demand for gold in Godhra and India in general. This also causes the prices to increase.
• Increasing interest rates have traditionally seen gold prices fall as people substitute gold for high-interest-rate playing instruments.