Gold rate in Lucknow

Lucknow is popularly known as the ‘City of Nawabs’ and the ‘Golden City of the East.’ The city is known for its rich culture and heritage, including a fondness for the most precious metal, gold.

Lucknow has a rich tradition of gold investment, both physical and digital gold. The people in Lucknow like to adorn themselves with gold jewellery on special occasions such as birthday parties and weddings. This drives the demand for yellow metal in the city.

However, prices of gold in Lucknow are volatile owing to government policies, inflation, international currency, interest rates, currency conversion rates, etc. So, let's check out Lucknow gold rates and other aspects of gold.

Some Interesting Facts about Gold

There's so much gold in the world that if pulled into a 5-micron wire, it could wrap around the Earth 11.2 million times.

Finding a one-ounce gold nugget is rarer than finding a 5-carat diamond.

About 49% of the mined gold is used in jewellery.

The Perth Mint cast the largest gold coin weighing one tonne.

The world's oceans are believed to hold up to 15,000 tonnes of precious metal.

Comparison between 24-karat and 22-karat Gold

Gold is available in both 24-karat and 22-karat. However, 24-karat and 22-karat gold differ based on purity and price. Here's how:

24-karat gold is 99.9% pure and used as gold bars, coins, and bullion, whereas 22-karat gold is 91.6% pure and is used in jewellery.

24-karat gold does not contain any other metal, whereas 22 Karat gold contains gold and other metals such as silver, Cadmium, etc.

The cost of 24 Karat gold is higher than that of 22 Karat.

Gold Vs Other Investment Options

Gold is a popular investment option amongst Indians because of its ornamental value and pride in ownership. Gold, however, differs from other investment options. Here's how:

Though Gold investments are considered profitable, the returns are not guaranteed. They depend on the gold price movement. The profit or loss on one's investment in gold depends on whether the gold rates are high or low at the point of sale.

The risk involved in gold investment is low.

During a period of inflation and a falling currency, the prices of other investments might fall, whereas gold can offer stability and protect your investment.

There are no tax benefits on gold investment such as those offered by other investment avenues like Public Provident Fund, Equity Linked Saving Scheme (ELSS), etc.

Impact of GST on Gold Rate in Lucknow

Before the implementation of GST, 1% VAT and 1% service tax were levied on the price of gold over and above the selling price.

However, with the implementation of GST, the taxation rules changed. GST replaced the VAT and service tax levied on gold. So, today, you pay GST on the gold that you buy.

The rate of GST is 3%. Moreover, there is also a GST of 5% on the making charges.

Thus, GST has increased the overall price payable for gold and has made the metal costly for consumers.

Impact of Central Bank Policies on Lucknow Gold Rate

The Reserve Bank of India (RBI) is responsible for formulating and implementing monetary policy in the county. The rates of gold are determined based on the monetary policy of RBI.

The Government of India sells and buys gold through the RBI. When the RBI starts holding the gold reserves or procuring more gold, the prices go up and vice versa. This is because the cash flow in the market is increased when the gold supply goes down.