Gold Rate Today in Imphal

Imphal, the capital of Manipur, is one of India's oldest cities. It is located 786 meters above sea level and is renowned for its beautiful scenery and lush vegetation. Manipur is home to several tribes, and Imphal serves as the state's cultural centre. The government systematically mapped Manipur's geology and found various minerals like chromite, limestone, nickel, malachite, azurite, copper and magnetite (PGE). 

The country is one of the largest gold consumers globally, primarily using gold for jewellery and investment purposes. Unlike other countries that use gold for industrial purposes, gold in Imphal is primarily an investment vehicle.

Although gold is high in demand throughout the year, the demand for this precious metal increases during the wedding and festive seasons. While earlier investing in gold meant visiting a jeweller physically, nowadays, people can also invest in digital gold. There are plenty of options to choose from.

How does GST Impact Gold Rates in Imphal?

The implementation of the Goods and Services Tax (GST) raised the price of gold in Imphal. In the pre-GST era, buyers had to pay 1% customs duty and 1.2% value-added tax (VAT) when purchasing gold.

After the implementation of GST, you have to pay 3% GST on the price of gold and 5% GST on the making charges of the gold jewellery. So, the GST entails higher costs than customs duty and VAT put together.

Three types of import duties apply to gold imports to India -

• Custom Duty (12.5%)
• Agriculture and Infra Tax (2.5%)
• Social Welfare Surcharge (10% of Custom Duty)

Total import duty (excluding GST) is therefore around 15% (12.5 +2.5) + a minimal Social Welfare Surcharge of 10% of Custom Duty (not the gold price).

Investment Options for Gold in Imphal

• Gold ornaments - Wearing gold ornaments is considered auspicious in Imphal, especially during wedding ceremonies and festivities. People buy gold jewellery in massive amounts during these occasions.
• Gold Bullion - Physical gold that is at least 99.5% pure, in the form of bars or ingots, is known as gold bullion. People buy gold bullion in Imphal as an investment to beat inflation and cope with unexpected economic downturns.
• Digital gold - With digitisation, Imphal residents have taken to digital gold. Payment platforms like PayTM and PhonePe allow you to easily purchase gold for as low as ₹1 from the comfort of your home. This also prevents the hassle of storing physical gold and keeping it safe.
• Sovereign Gold Bonds (SGBs): Government securities with a gold-based value are known as sovereign gold bonds (SGB). The Reserve Bank of India issues the bonds on behalf of the government. Therefore, these gold bonds will serve as a suitable replacement for actual gold. The initial purchase and maturity redemption are made in cash, not gold.
• Gold Mutual Funds: Gold funds are mutual funds with investments in gold reserves, either directly or indirectly. Investing is typically done in gold-related stocks, physical gold, and gold-producing and -distribution syndicates.
• Gold Exchange-Traded Funds (ETFs): ETFs for gold operate similarly to mutual funds. A gold ETF's units each represent one gramme of 99.5% pure gold. Major exchanges host trading for gold ETFs.

How to Determine the Purity of Gold?

The gold rates vary depending on the purity of the gold. According to the World Gold Council, 24-karat gold is 99.99% pure, while 22-karat gold is 91.67% pure.

22-karat gold is also known as 916-hallmarked gold, owing to its purity of 91.6%. The Bureau of Indian Standards (BIS) carries out the hallmarking of gold jewellery.

Before buying gold, check for the hallmark to assess the gold's quality. You must look for the following hallmarks before purchasing a gold article -

• BIS Logo
• Year of Production
• Karat Value
• Identification Mark or Number of Jeweller

There are two simple ways of determining the purity of gold at home:

1. Immerse it in water. Your gold is pure if it sinks to the bottom.
2. Place the gold item close to a magnet. If the gold is pure, it won't be drawn to the magnet.

Factors Affecting Gold Prices in Imphal

• Inflation causes an increase in the demand for gold, thus impacting its prices. This is because investments in gold have historically yielded inflation-beating returns.
• The fluctuations in the value of the Indian rupee against the US dollar impact the gold rates. If the value of the Indian rupee plummets, the gold rates rise. This is because the global gold trade is carried out in US dollars.
• If gold rates in international markets increase, the rates in Imphal will also witness a hike.
• Government policy changes cause gold rates to increase or decrease depending on the impact those policies have on the country's overall economy.
• Taxation and import regulation changes are also major impacting factors. This is because India meets most of its gold demands via imports from other nations.