Gold Rate Today in Kochi

Kochi is a beautiful coastal city located in the state of Kerala. Also known as the 'Queen of the Arabian Sea', it has a long and rich history and is famed for being a hub for the exotic spice trade. In ancient times, Kochi served as an essential trading centre with the Middle East and Europe. 

Kerala is home to an ever-evolving investor community that prefers investing in various instruments, including gold. Gold is one of the most preferred commodities in the state, as nearly every occasion is marked by gifting of gold in some form, either jewellery or coins. 

A stroll through Kochi's M.G. Road will give a glimpse of some of the finest gold jewellery stores, most of which are usually packed with customers throughout the day. 

The rate of gold in Kochi depends on several factors, such as the national and international geo-political situation, the local economy etc. The yellow metal is seen as a safe investment during times of political and economic uncertainty. Hence, many people invest in gold. 

You can buy gold in Kochi from various places, such as jewellery shops, bullion dealers, and banks. The price of gold is usually quoted in grams or tolas. 

Now that you have an overview of the Kochi gold market let's dive right in and explore the gold rates in the city and more.

How Does GST Impact Gold Rates in Kochi?

GST implementation has increased gold prices in Kochi. Let us see how.

Before GST, gold buyers had to pay a 10% import duty, 1% customs duty, and 1.2% value-added tax (VAT) on their purchases.

In contrast, post-GST, each purchase now attracts a 12.5% import duty and a 3% GST on the total price. In addition, a 5% making charge also applies, taking the costs up.

22-Karats vs 24-Karat Gold: Which to Buy?

The main difference between 22-Karat and 24-Karat gold is the percentage of impurities present in each type.

24-Karat gold is about 99.9% pure. In other words, it is gold in its purest form. However, 24-Karat is delicate and not ideal for making jewellery.

In contrast, 22-Karat gold, containing about 91.6% pure gold, is widely used in jewellery-making.

You can buy gold in either form. But, 24-Karat is more expensive and is mostly used as an investment option.

However, if you want to buy gold for jewellery, choose 22-Karat gold, as it's more durable than 24-Karat and yet looks just as beautiful.

Factors Affecting the Gold Prices in Kochi

Many factors can affect the gold prices in Kochi. Some of these include:

• Demand and Supply
  Many factors can affect the demand for gold. But, if the demand for gold is high, the prices will increase. For instance, during weddings and festivals, jewellers typically sell gold at hiked rates, as people tend to buy more gold in such times. 
  Similarly, when the supply of gold is low, prices will likely go up. 
• Value of the US Dollar
  International gold trade is made in US Dollars. Hence, if the Dollar weakens against the Indian Rupee, the price of gold will increase.
• Interest Rates
  Interest rates share an inverse relationship with gold prices. For instance, when interest rates are low, people may not earn the expected investment returns. As a result, they invest in gold. With this increase in demand, gold rates also rise.
  Similarly, higher interest rates may decrease the price of gold as people invest in other assets. 
• Inflation
  Gold prices are believed to remain stable even during long inflationary periods. In other words, gold acts as a hedge against inflation. Hence, people tend to accumulate more gold during such times, shooting up the demand and increasing the prices.
• Geopolitical Tensions
  Geopolitical tensions can increase the demand for gold as people see gold as a safe asset to invest in, even when the market turns volatile.