Gold rate in Jagdalpur

Jagdalpur in the Bastar district of Chattisgarh has a rich heritage with its share of palaces and monuments. If you are looking for a destination that has retained its natural beauty untouched by commercialism, it must be the land of the tribals, Jagdalpur. The roadways connect the city to neighbouring Raipur and Jeypore.

The people of Jagdalpur buy gold during two seasons, Viz. the season of the falling market as a hedge and during festivals and auspicious days. During these seasons, the demand for gold in Jagdalpur rises considerably, elevating the gold rates in the city.

Some Interesting Facts on Gold and Gold Rates 

People attach differing values to gold in the various cities in India, which may be emotional, financial, and cultural. But is there a difference in Jagdalpur concerning gold and its rates compared with other cities? Here are some interesting facts:

• The people in Jagdalpur generally buy gold jewellery or ornaments.
• However, some of them also trade in gold at the National Commodity and Derivatives Exchange (NCDEX), the Multi Commodity Exchange (MCX) and the National Spot Exchange (NSEL).
• The Indian Bullion and Jewellers Association (IBJA) decide the daily gold base rate in Jagdalpur. Still, it is available to the customers at a gold rate as agreed by the Jewelers Association in Jagdalpur.
• The gold rates depend on the equilibrium of gold stocks in Jagdalpur and not on the stability of the gold flow.
• The gold rates differ in Jagdalpur from other cities in India. The difference is because of the different import duties, state taxes and State Government policies relating to gold trade.

Comparison Between 24K and 22K Gold

What's the difference between 24K and 22K gold? The only difference is purity. 24K gold is 999.9% pure gold, but 22K gold is 91.67% pure gold and 8.33% alloys. Why do people buy 22K gold?

Gold is malleable and fragile in its natural form, and Jewellers find it challenging to mould it into delicate ornaments. Moreover, ornaments of 24K gold are brittle and will break easily. Thus, combining 22 parts of gold with an alloy is necessary to make ornaments. Also, if you want to make ornaments with precious stones like diamonds, rubies or emeralds, it is better to use 18K gold for a better hold. That will ensure a better grip and reduce the chances of losing the precious stone.

Gold vs other Investment Options

Investors have several investment options, and the one that is gaining much popularity these days is digital currency or cryptocurrency (Crypto). The question is whether it fares better than gold, and let's find out.

The most significant plus point of investing in crypto is that you can trade without intermediaries and thus save on commission. However, gold proves to be a better investment than crypto:

• Gold price rises even when the currency's value depreciates; therefore, gold works as an inflation hedge.
• Gold provides excellent long-term returns.
• Gold has high liquidity and allows investors to convert it into cash whenever needed.
• Over the years, gold rates have been increasing steadily. Thus, gold is a secure investment.
• Investors who seek to reduce risk through portfolio diversity invest in gold because of its low volatility.

Impact of GST / Central Bank Policies on Gold Rate in Jagdalpur

Good and Services Tax (GST) applies to the gold you buy in Jagdalpur as follows:

Price of Gold X its weight + making charges on gold ornaments + GST @ 3% (the cost of jewellery +making charges). 

The prices of gold in Jagdalpur have thus gone up by 0.75% because of the custom duty at 10% and GST at 3%.

Therefore, if you are buying 10 grams of gold, the purchase will cost you as follows.

Cost calculation of gold purchase:

• Total cost of gold: ₹ 51600 (5160 * 10)
• Custom duty: ₹ 5160 (51600 * 10% = 5160)
• GST at 3%: ₹ 1548 (51600 * 3% = 1548)
• Total price of gold purchase: ₹ 58308 (51600 + 5160 + 1548 = 58308).