Gold Rate Today in Jammu

Nestled against the foothills of the Himalayas, Jammu is the winter capital and largest city in the district of Jammu. Also known as the City of Temples, Jammu is famous for Hindu mandirs and shrines, both historical and modern. It is one of the most beautiful cities in India and the most visited place in J&K.

The city is a flourishing hub of business and culture in the Jammu region, consisting of numerous rice mills and industrial manufacturing units. Tourism is one of the top-performing industries. Besides pashmina shawls and hand-woven carpets, there is also a steady and consistent demand for gold in Jammu.

The demand for gold in Jammu depends on several factors. At the top of the list is the gold rate in Jammu today. Let's take a look at what affects the gold price.

How Does GST Impact Gold Rates in Jammu?

The GST rules in union territories are slightly different from the other cities and states of India. Certain products are exempted from GST charges.

GST is levied on the purchase of gold in Jammu. The rate of GST, in this case, is 3%. This means you have to pay 3% GST on the price of gold whenever you are buying it. Apart from that, there is also a 5% GST charge added to the making charge of the gold jewellery. 

Also, there is a separate import duty of 10% that is levied on the price of imported gold.

How is the purity of gold judged in Jammu?

To assess or judge the purity of gold, while buying a gold product, one must ensure that the gold jewellery or coins bear the Bureau of Indian Standards (BIS) stamp. All gold products are stamped with a Bureau of Indian Standards (BIS) certificate, which confirms that the gold is extremely pure.

Investment Options For Gold in Jammu

Gold investments have been popular in Jammu for years. However, nowadays gold investments are very different from what they used to be. Traditionally, people stocked up on gold bars, coins, and jewellery as a store of value. These investments were purchased from local gold shops and then stored safely in lockers at home.

Currently, the concept of gold investment has changed. Everything is digital or dematerialised. You can invest in digital gold for years without ever having to store it in a locker or even touching the yellow metal. You can opt for new-age gold investment methods such as gold mutual funds and gold ETFs.

Remember that gold mutual funds don't invest directly in gold - instead, they invest in companies that produce gold. If you want to invest directly in gold, ETFs are a better option. You can also opt for digital gold.

Understanding 916 Hallmarked Gold Prices in Jammu

Whether it is 24-karat, 22-karat, or 18-karat gold, it looks the same. It is impossible to tell the different variations apart from eyeballing it. 

The 916 hallmark that was launched by the Bureau of Indian Standards (BIS) answers this problem. It is a stamp or a sign of authentication which proves the gold to be of 22-karat or 91.6% purity.

916 hallmarked gold rates are the same as the 22-karat gold rate in Jammu.

Gold vs Mutual Funds

With the advent of paper money and new-age finance, different forms of investments have emerged as possible investment options, particularly gold and mutual funds.
You can invest in debt, equity or hybrid mutual funds, whereas you can invest in physical or digital gold. Investing in mutual funds can involve an amount as small as Rs. 100, whereas for gold investments, one should have thousands of rupees to invest. It is essential to identify one's investment goals and horizon before taking a final decision.

Factors Affecting Gold Prices in Jammu

1. Inflation
   Just like small insects and pests can often eat away at the harvest, inflation can eat away at savings that are kept idle in the bank account. Banks provide 3.5% yearly interest on average, while the rate of inflation is much higher. This means, every year that your money stays idle in the bank account, its value decreases.
   Many people prefer to keep gold holdings instead of cash to beat the rate of inflation. This means, when inflation is high, more people buy gold and the price of gold increases. There is thus a direct relationship between inflation and the price of gold.
2. Global Markets
   The price of gold in Jammu and even in India is highly influenced by the price of gold in the global markets. If there are changes in demand or supply, there are sudden fluctuations in the global price of gold, and this is reflected in India.
3. Stock Market
   The stock market is volatile at the best of times. As long as investors keep generating wealth, equity is an attractive form of investment. However, when the market crashes, millions of rupees of wealth get eroded in a matter of days.
   When the stock market is not performing well, investors shift to gold and the price of gold increases. There is an inverse relationship between the stock indices and the price of gold.
4. Interest Rate
   When the interest rate on fixed deposits and bond investments is high, people will choose those over gold investments. Demand for gold will fall, and so will the price. Similarly, when the interest rate falls, people shift their assets from fixed deposits and bonds and opt for gold and other investments instead.
5. Import costs
   A higher dollar increases the cost of purchasing gold since transactions are conducted in US dollars.
6. Financial stability
   Gold is considered a stable investment, and as a result, its price tends to increase significantly during economic crises. Investors prefer gold instead of risky investment channels.
7. Seasonal Price
   In Jammu during auspicious festivals, wedding seasons, and other important events, the demand for gold tends to increase. This leads to an increase in prices.