Gold Rate Ludhiana
Last updated on: 1st Jun 2023 05:41 PM
Ludhiana is the largest and most populous city in Punjab. Being the hub of the hosiery manufacturing industry, Ludhiana's economy is powered by its textile market. Being a trade hub, it is also home to various other businesses. Gold is one of them. The city is home to jewellers of all shapes and sizes.
The people of Punjab have traditionally seen gold as an auspicious and lucrative investment. Ludhiana and its residents are no exception either. Besides physical gold like jewellery and coins, the locals also invest in digital and paper gold.
The IBJA (The Indian Bullion Jewellers Association) plays a vital role in determining the daily gold rates in Ludhiana. IBJA consists of the country's most prominent gold dealers. They account for the lion’s share of gold that is sold and bought in the country and hence, has the power to determine the gold price across the country.
Banks are the largest importers of gold in the country. However, they add a fee to the imported gold before selling it to a supplier, increasing the purchase price at the source. By the time it reaches you, the price you pay for gold includes various charges. For instance, when you buy gold jewellery, you may also need to pay a making price.
Both gold and fixed deposits are popular investment instruments. However, both share some differences, too. To begin with, returns from FD are guaranteed and fixed. Market fluctuations or economic conditions don’t affect your interest income.
On the other hand, gold rates can fluctuate. This is because gold rates get decided daily. They could go up or down based on economic conditions. But per historical trends, gold rates have always gone up in the longer term.
|Day||24K Gold||22K Gold|
|01 Jun 2023|
|31 May 2023|
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|29 May 2023|
|26 May 2023|
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|19 May 2023|
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.
Gold price and inflation are directly proportional to each other. When inflation rates increase, people see gold as a valuable asset, believing told acts as a hedge against inflation. With the rise in demand, gold prices have increased.
Gold is traded internationally in US Dollars, and since much of India's gold is imported, any change in the value of the Indian Rupee vis-a-vis the USD import gold prices. For instance, if the Rupee depreciates against the USD, then gold rates in India will go up.
Gold rates are announced every morning by the jeweller's association of Ludhiana, and Typically they consider a mix of factors to determine the prices. Seasonal demand for gold is one of them. During festivals and weddings, many people are out buying gold. With this increase in demand, the jewellers increase gold rates.
If you are new to the gold market, understanding the difference between 24-karat and 22-karat gold is crucial. For the uninitiated, karat is the unit used to measure the purity of gold in the final product. 24-karat denotes gold with the highest level of purity. The 22-karat variant has gold mixed with other alloys.
After the introduction of Goods and Service Tax (GST), Ludhiana's gold prices have increased. Before GST, the jewellers had to pay 10% as custom duty, 1% excise duty, and 1.2% VAT. Thus, the total amount of tax was 12.43%.
After GST, a flat 3% GST is levied and 10% as custom duty.
Therefore, the total amount of tax now stands at 13%, impacting the price of gold items.
Central banks often play an essential role in determining Ludhiana's gold rate. As a thumb rule, the central banks reduce the gold rate when foreign exchange reserves are in good shape, and the economy is sluggish.
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