Gold Rate Today in Karnal

Karnal is a historic city named after “Karna”, whose courage and character as a fearless warrior and legendary archer is best known from the Indian epic, Mahabharata. The city's history is studded with events from ancient empires, the Mughal era, and the great rebellion of 1857.

Karnal is also a significant business hub of Haryana, and its proximity to the national capital boosts its appeal as an investment destination. Karnal has a rich presence of several gold business outlets, many scattered around Sarafa Bazar, Mini Sarafa Bazar, Kunjpura Road, and Chaura Bazar areas.

Gold rates in Karnal depend on several factors. Inflation, gold prices in the international market, fluctuations in financial markets, national currency devaluation, Reserve Bank of India policy changes, GST Council notification on taxation, and rise or decline in import duties are some of the leading domestic reasons influencing gold prices in Karnal. In addition, international factors like wars, sanctions, military conflicts, and insurgencies can influence gold prices in Karnal.

Let us have a look at the gold prices in the city.

How Does GST Impact Gold Rates in Karnal?

Goods and Services Tax (GST) is imposed by the Central Government. Currently, it is capped at 3% at the price of gold. Apart from GST, other charges affecting gold rates in Karnal include import duty on gold (12.5%), Agriculture Infrastructure Development Cess (AIDC) (2.5 %), making charges based on design (only on gold ornaments and jewellery), and hallmarking charges.

Various Methods of Testing Gold in Karnal

Gold’s popularity as an investment method is rising day by day. Gold has given inflation-beating returns in the last few years and remains a prevalent instrument of investment across the globe. Gold rush during recent black swan events and multiple waves of the Covid-19 pandemic has proved to unwavering confidence of investors in gold. World over, investors parked their money in gold during turbulent years of Covid lockdowns.

Just like other assets, gold is also hit hard by fraudulent practices and adulteration. Investors must be careful while buying physical gold, as disguised impurities can rob you of your hard-earned money. The government has come up with some mechanisms to protect investors’ interests to differentiate pure gold from impure. Karnal is listed as a mandatory hallmarking district by the government. Let us learn more about it.

The Bureau of Indian Standards (BIS) is a Central Government body. It certifies the purity of gold bought by a customer in Karnal. This certification process of mapping the purity of gold is called hallmarking. The leading purpose of hallmarking is to protect gullible buyers against adulteration. It also helps bind manufacturers to maintain legal standards of purity/fineness.

The essential components that should be kept in mind while checking hallmarked gold jewellery to map the purity of gold are listed below -

a) BIS Mark

b) Purity in Karat and Fineness

c) Identification mark/number of Assaying and Hallmarking Centre

d) Jeweller’s Identification mark/number

1. BIS Mark – Gold jewellery having the BIS logo is hallmarked by the BIS. It technically means that the said jewellery’s purity is verified in one of BIS’ licensed labs. BIS is the only agency approved by the Government of India for hallmarking gold articles of any kind to verify their purity. 

2. Purity in Karat and fineness – There are two ways to indicate the purity of gold. They are –

a) Karat (K)

b) Fineness number

It is pertinent to note that whenever the purity of gold is measured in Karat, 24K gold is the purest form of gold. 24K is so pure that it lacks the rigidity to create any kind of jewellery or ornament. The addition of other metals like zinc and silver in gold become necessary to form jewellery and ornament.

The fineness number is another method of checking gold purity. Purity in parts per thousand is the norm in the fineness method. 24K gold, too, will have slight impurities and can only be refined up to the fineness level of 999.9 parts of a thousand.

Three important levels of purity in Karat hallmarking are given below –

• 22K916 is 22 Karat gold with a purity of 91.6 per cent.
• 18K750 is 18 Karat gold with a purity of 75 per cent.
• 14K585 IS 14 Karat gold with a purity of 58.5 per cent.

As of now, six caratages of gold/jewellery/artefacts are prevalent after the new amendment. They are 14,18,20,22,23, and 24 Karats.

3. Identification mark/number of Assaying and Hallmarking Centre – The lab assessing the purity of gold of jewellery must put its logo on the jewellery. Only labs licensed by BIS can assess the purity of gold. One can verify the hallmarking centre’s license from the BIS website. 

4. Jeweller's identification mark – The shop you bought the gold jewellery from will also put its identification mark. This can be the mark of BIS certified jeweller or jewellery manufacturer. BIS has provided the list of certified jewellers on its website.