Last updated on: 3th Feb 2023 10:00 AM
Jamnagar, the fifth-largest city in Gujarat, is home to some of the largest oil refineries in the nation. This city, once known as "Brass City," is a hub for brass production facilities and has also been referred to as the world's oil city. With a booming population, marble Jain temples, a rich cultural legacy, and excellent land, sea, and air connectivity, Jamnagar is known for its all-weather port, a plentiful supply of bauxite mining, and brass manufacturing facilities.
Gold is one of Jamnagar's most widely used products, primarily for jewellery and investments. In Jamnagar, gold is predominantly used as an investment, in contrast to many other places where it is used for industrial purposes. Especially in times of political or economic unpredictability, gold is viewed as a relatively safe investment. The price of gold is stable when conditions are generally peaceful, but it swings when the Indian currency's value decreases or the Indian economy does not do well.
You may wonder why there is a fluctuation in gold prices. It would help if you looked at a few things that affect the price of gold.
Gold prices in Jamnagar fall when the US dollar is higher. Investors choose to invest in currency rather than gold in these circumstances.
Banks typically invest in gold rather than the dollar when the dollar falls. This move is taken to protect against any uncertainties. The price of gold rises as a result of this increasing demand. Similarly, investors switch their bets from gold to the US dollar as the US currency gains strength. The price of gold decreases as a result of this decline in demand.
Whenever there is inflation, gold prices often increase. This spiralling trend increases gold prices because investors buy it as a hedge against inflation.
Because gold is seen as a stable asset, its price tends to rise during economic downturns. Investors shift their capital away from riskier investments and move towards gold. The high liquidity of gold is another benefit, and it maintains its high value throughout unstable times.
Gold demand and interest rates on financial goods and services are co-related. In general, the current gold price is a reliable indicator of the interest rate trend in any country. When interest rates increase, customers frequently sell gold to earn cash, which increases the metal's supply and lowers its price. Additionally, lower interest rates result in more money in consumers' pockets, increasing demand for gold and, consequently, the metal's price.
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|31 Jan 2023|
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The cost of gold and gold jewellery in Jamnagar immediately increased after the Goods and Services Tax (GST) went into effect. The tax system that was in place in Jamnagar and the rest of India prior to the implementation of the GST has had a significant impact on both.
The recently implemented GST offered a unified indirect tax structure in place of enacting a variety of indirect taxes like the Value Added Tax (VTA) and service tax on gold. It separated the goods and services into groups for which one of the four tax slabs—5%, 12%, 18%, or 28%—applied.
The price of gold in Begusarai and the rest of India was significantly impacted in both directions by the new taxation system:
A tax of 3% of the gold's value was made due. The tax has increased by 1% since the introduction of the GST. In the past, 1% VAT and 1% sales tax were charged. Since the implementation of GST, the tax is a consistent 3% of the gold's value.
The GST imposes an additional 5% tax on the costs associated with producing the gold for the jeweller. When buying gold ornaments before the introduction of the GST, there was no tax on the jewellery's manufacturing costs. Jewellery production now carries a 5% GST tax.
In Jamnagar, gold is the most popular and secure kind of investment. There are many other investment options, such as real estate, land, or the stock market, but gold investment is still essential for the investment portfolio.
In Jamnagar, gold is traditionally invested in coins, bars, and jewellery. However, many new gold investing options have emerged in recent years. Investors can easily trade gold. Now, investors have access to mutual funds and stocks tied to gold. ETFs (Exchange Traded Funds) are straightforward financial products that combine the simplicity of gold investments with the flexibility of stock investments.
|Day||24K Gold||22K Gold|
|01 February 2023||5658||5389|
|07 February 2023||0||0|
Gold is valuable only when it is pure. There are instances where customers are duped with impure gold. Hence, confirming the purity of gold is crucial.
The Bureau of Indian Standards (BIS) is a government authority that certifies the purity of gold. According to BIS, the following factors are to be kept in mind when buying gold.
Jewellery hallmarked by BIS will have a BIS logo on it. Remember that since BIS is the only authorized laboratory in India for gold certification.
Karat is a scale to gauge gold's purity. While 24 karat gold is the purest, it is too soft for use. Hence, other metals are added and the gold available in the market is often 22 Karat.
The gold you buy should also carry an identification mark by an authorized jeweller. This helps ensure the gold is from a credible source. The mark can also be helpful in the case of disputes.
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