Gold rate in Guntur

Guntur is located in the eastern part of Andhra Pradesh. It is the homeland of diamonds - including the Hope diamond (which is on display in the National Museum of Natural History in Washington, DC, USA) and the Kohinoor diamond.

The affinity of Indians for gold is a well-established fact, and the same is true for the people of Guntur. Purchasing and investing in gold is a traditional practice among Indians. Besides buying gold for personal use during weddings and celebrations, the citizens of Guntur also buy it for gifting purposes. In addition to other parts of the country, the people of Guntur also view gold as a safe form of investment.

Factors Impacting the Price of Gold in Guntur

Gold is considered one of the safest investment avenues. Experts suggest that even during economic and political crises, investing in gold is fruitful because its value appreciates.

Several factors influence gold rates in Guntur, some of which are listed below -

• Since most of the gold demand is met through imports, customs duties impact gold prices in Guntur.
• Fluctuations in the Indian rupee also impact the price of imported gold.
• Most of the gold in India is imported by banks. Thus, the price of gold you pay contains a margin for the banks. 
• Variations in the rates in Guntur can be accounted for based on the following:
  i. Cost of transporting the gold
  ii. Security protocols followed by the state
  Consequently, southern states in India have slightly lower gold prices, as compared to northern states, since northern states are farther away from ports.

Gold is considered a haven when market-linked investments become risky. Hence, when the stock market falls, gold prices increase. This is because investors tend to invest in gold during such times.

How to Test Gold Purity in Guntur?

Karat (K) is the unit used to measure the purity of gold. Gold is available in various purity levels in Guntur -

• 24K gold: 99.9% pure
• 22K gold: 91.6% pure
• 18K gold: 75% pure
• 14K gold: 58.5% pure

If you wish to check the purity of gold on your own, you can do so by the following methods -

1. Scratch test: Take a black stone, an unglazed ceramic plate or a porcelain tile, and gently rub it on your gold jewellery or bullion. If you see a golden yellow tint after scratching, then your gold is authentic.
2. Magnifying glass test: Take a magnifying glass and carefully check the entire article. If any portion of the item shows discolouration or is shinier than the rest of the article, there are chances of the gold being fake.
3. Float test: Put your jewellery or gold coin in a bowl of water. Since gold has a higher density than water, real gold will straightaway sink to the bottom. If the gold is fake, it will float above the bowl's bottom. Please note this test might not be 100% accurate.
4. Magnet test: Get a strong magnet and place it near your gold item. If the magnet repels the gold, then the gold is pure.
5. Vinegar test: Fill some white vinegar in a bowl and place your gold article in it for 15 minutes. If you see any change in the colour, then the gold is not genuine.
    

Investment Options for Gold in Guntur

Most people buy gold in the form of jewellery, coins, bars and biscuits. This is the traditional practice of purchasing gold in Guntur and is considered safe by many Indians. But buying physical gold comes with a few challenges -

• You might have to pay making charges on purchasing jewellery, which vary from jeweller to jeweller. Making charges refer to the cost of converting raw gold into intricate jewellery designs.
• Storing physical gold in bank lockers might require you to pay additional charges for the locker as well.
• If you store gold at home, it is crucial to keep it secure against theft or loss.

To avoid the problems mentioned above, newer alternatives have now cropped on the market. Let us have a look at some of those -

1. Sovereign Gold Bonds (SGBs): Various gold bonds are issued by the Reserve Bank of India (RBI) from time to time. 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 for cash at the then price of 24-karat gold. 
2. Gold Exchange-Traded Funds (ETFs): They are issued by various fund houses. Through these, you can even invest in decimals of gold quantity, such as 0.05 grams. These ETFs are backed by physical gold. 1 gold ETF unit = 1 gram of gold.
3. Gold Futures: They are exchange-traded contracts wherein the buyer agrees to get gold delivered at a future date at a predetermined price.