Gold Rate Today in Howrah

Things to Check When Buying Gold in Howrah

Before buying gold in Howrah, you must check the following things

Purity

Make sure you pay for gold based on its purity in karats.

Making charges

When purchasing gold jewellery, the making charges can be as high as 35% of the gold.

Cost of gemstones in gold jewellery

Gold jewellery containing gemstones is weighed as it is, and the stone's weight is also charged at the rate of gold.

Un-hallmarked gold in Howrah

Unhallmarked gold is not guaranteed to be pure or valuable. It is advisable to buy only hallmarked gold in Howrah.

Investment Options for Gold in Howrah

In Howrah, traditionally, people buy gold coins, bars, and jewellery. However, new gold investing options have emerged recently, giving us more options to trade in the metal. These include sovereign gold bonds, mutual funds and ETFs that are tied to gold.

1. ETFs (Exchange Traded Funds), for instance, are financial products that combine the simplicity of investing in gold with the flexibility of stock investments. 2. Sovereign gold bonds are government securities denominated in grams of gold. It is an alternative to holding physical gold. The bond issue price must be paid in cash and is redeemable in cash upon maturity. Reserve Bank of India issues the bond on behalf of the Government of India. 3. Gold mutual funds in India are a relatively new concept and have only been around for about two decades. These funds invest in gold bullion, coins, and other gold-related instruments. An investment in physical gold through this non-government-controlled gold investment instrument saves individuals the hassle of buying gold in person or investing in Gold ETFs.

How is Gold Purity Determined in Howrah?

The purity of the gold affects its price. In Howrah and anywhere in India, the gold’s purity can be determined by its hallmark. The Bureau of Indian Standards (BIS) hallmarks gold jewellery. Gold with the 916 hallmarks is 22-Karat gold.

So, you must check the hallmark before purchasing gold since it guarantees the metal’s quality. Thus, first look for the BIS logo, then the production year, and at the end, whether 916 is mentioned.

Factors Affecting Gold Prices in Howrah

The following factors influence the price of gold in Howrah.

Demand and Supply 

The demand and supply of gold impact gold rates in Howrah. If people want more gold than is available, the price of gold will go up. Conversely, if there is more gold available than people want, the price will decrease.

The interest rates and gold prices in Howrah are inversely related. This means when the interest rate increases, the gold rate decreases, and when interest rates decrease, the gold rate increases. This is because when interest rates are high, people tend to invest money in other places, like bonds and bank FDs. So there is less demand for gold, and the gold rate falls. However, when interest rates are low, they see gold as a safe investment, so there is more demand for it, and the gold rate goes up.

Inflation

Most Indians like to invest in gold and utilise it as a hedge. In times of high inflation, people usually buy more gold as a kind of protection, driving up the price. Similarly, during deflation, gold prices fall.

Taxes and Import Duty

Customs duty is a tax charged on shipments containing gold when they are imported to India. As a result, when a shift in government policy leads to an increase in customs duty, the market price of gold is immediately impacted. Further, other costs, like distribution expenses, municipal taxes, and GST, also raise the gold price in Howrah.

Currency Fluctuations

Since gold is traded in dollars worldwide, currency fluctuations also impact gold’s price in Howrah. In particular, the conversion of Rupees to Dollars affects prices.