Gold Rate Today in Jalandhar

The third densely-populated city of Punjab, Jalandhar, is home to India’s premier leather industry. The city is known globally for its finest leather raw materials for footwear, and accessories, among other things. A sports hub and a thriving cultural hub with historical landmarks, the city witnesses an influx of domestic and international travellers throughout the year.

It is also home to a flourishing gold jewellery market. Several earmarked gold shops are spread across the city. Hence, the local community in Jalandhar has several gold-buying and trading options.

Most Indian households have always considered gold a safe investment option. It acts as a hedge against inflation but, most importantly, signifies prosperity. Hence, the demand for gold peaks during festivities when people buy it in large quantities.

So, are you looking to invest in gold in Jalandhar? Here are insights that will help you make an informed decision.

How Does GST Impact Gold Rates in Jalandhar?

The Goods and Services Tax (GST) has increased gold rates in Jalandhar.

Before GST came into effect, the tax structure on gold prices was - 10 % import duty, 1.2 % value-added tax, and 1 % customs duty.

However, after GST implementation, 3% GST and 12.5% basic import duty are imposed on the gold price, thus increasing gold prices in Jalandhar.

In addition, Jalandhar-based gold buyers must also pay 5-35% making charges depending upon the seller, which leads to an overall increase in the gold rates.

Investment Options for Gold in Jalandhar

Since Jalandhar is an industrial belt, gold investment is of considerable interest across most households. There is also considerable interest in gold investment when it comes to buying physical gold. These include jewellery and bullion (gold coins and bars). Traditionally, the people of Jalandhar are known to buy gold jewellery during weddings and festive occasions.

Now, digital gold, gold ETFs, gold mutual funds, and sovereign gold bonds have become popular options. A person can start investing in these options at no extra cost other than 3% GST, and there is no risk of theft or storage-related issues. Buying and selling digital gold online is secure and transparent, making it a viable option for those who want to begin investing. An added advantage is that you can sell back gold digitally to the platform you bought it from.

Know More about 916 hallmarked Gold Rates in Jalandhar

The World Gold Council classified gold based on purity levels. 24-Karat gold is gold in its purest form, containing 99.9% purity. In contrast, 22-Karat gold has 91.6% gold. Essentially, it combines gold with other metals to ensure durability. 916 hallmarked gold denotes the 22-Karat variant. It is a mark of authenticity and purity.

The Bureau of Indian Standards (BSI) hallmarks gold in India and thus guarantees its purity level. However, only some people are aware of this aspect while buying gold.

When you go shopping for gold, make sure that you look out for the BSI logo, the year of manufacture, and the numbers ‘916’ at the end.

Remember that 916 hallmarked 22-Karat gold rates can differ from one city to another.

Factors Affecting Gold Prices in Jalandhar

• Inflation
  Inflation determines gold prices in the city to a large extent. This is because gold acts as a hedge against inflation. As inflation rises, people rush to buy gold which, in turn, increases its demand, causing gold rates to rise.
• Fluctuations in Currency Value
  Gold rates also change due to fluctuations in the value of the Indian currency vis-a-vis the dollar. Gold is traded globally in US Dollars. When the value of the Dollar changes, it impacts gold prices internationally, including in India.
• Government Gold Reserves
  The Government of India holds substantial Gold reserves. It buys and sells gold via the Reserve Bank of India. Gold prices in Jalandhar may go up or down depending on whether the Government is buying or selling gold.
• Government Policy Changes
  A change in government policy like import rules or taxation usually influences gold rates in Jalandhar.