Gold Rate Today in Kollam

Kollam is an ancient seaport and one of the finest cities on the Malabar Coast of Kerala. It is renowned for cashew processing and coir manufacturing. Formerly known as Quilon, this city is also a popular tourist destination. Just like other cities in Kerala, the people of Kollam are also fond of gold. It is a tradition in Kerala for the bride to be covered in gold during her wedding. Thus, there is a decent demand for this metal in the city.

How is the Purity of Gold Determined?

Karat is the unit used to measure the purity of gold. 24-karat is the purest form of gold. This means that gold isn't mixed with any other metal or alloy.

Below is a list of the different purity levels of gold -

• 8-karat: 33.3% purity
• 10-karat: 41.7% purity
• 12-karat: 50% purity
• 14-karat: 58.5% purity
• 18-karat: 75% purity
• 22-karat: 91.6% purity
• 24-karat: 99.9% purity

Note: The purity level of gold is not a sign of its strength or durability; it just reflects the ratio of pure gold mixed with other metals (like silver, zinc, copper, etc.). The higher the purity level of the gold item, the more the price.

Investing in Gold versus Other Investment Options Assets

Physical gold has been considered a reliable investment for several years. Let us look at whether it is better than other asset classes.

1. Property: If you invest in real estate, you must maintain it. While it is a safe option, you must consider the costs of upkeep and maintenance of the property after purchase.
2. Stocks: Market volatility is riskier with stocks. While these options are tempting for many investors, tracking them daily and their overall unpredictability is a bit stressful.
3. Banks: Although keeping your money in the bank is a safe option, investing in gold can fetch you better returns, particularly during financial uncertainties. The savings account interest may not get the profits gold assets can.

What are the Factors Affecting Gold Rates in Kollam?

The gold rates in Kollam may not remain the same on all days. They may also not match the rates in other cities of the country. There are several reasons for the difference.

1. The making charges on ornaments depend on the jeweller from whom you purchase gold items. But these charges can vary from jeweller to jeweller. For example, a reputed brand may charge higher making charges than many local jewellery shops.
2. The duties and taxes levied on gold imports can also cause an increase or decrease in the gold rates. Currently, 15% of import duty is taxed on all gold purchases.
3. If gold is transported to Kollam from elsewhere, the transportation cost gets added to the overall price of gold.
4. The dollar-rupee ratio also impacts the gold rates. If the value of the US dollar rises against the value of the Indian rupee, gold rates in the city tend to go up.
5. The economic situation of the state impacts gold rates in the city. Furthermore, the state government may levy additional taxes on gold purchases.

What is the Impact of Goods and Services Tax (GST) on Gold Rate in Kollam?

Whether you purchase gold bars, coins or jewellery, you must pay a 3% GST charge in Kollam, as is the case in the rest of the country. Under the GST regime, you also need to pay a 5% tax on the making charges of converting raw gold into jewellery.

Even when you sell gold, you need to pay GST. However, this clause is not applicable if you purchase gold jewellery against the gold you have sold.