Gold Rate Today in Malappuram

Malappuram, a city located in the state of Kerala, India, is a vibrant and culturally rich hub of commerce and industry. With a strong economy and a growing population, Malappuram is an attractive destination for both businesses and individuals seeking investment opportunities. One of the most popular forms of investment in Malappuram is gold. Gold has been a symbol of wealth and prosperity for centuries, and its popularity as an investment option continues to grow. In this blog, we will take a closer look at the various gold investment options available in Malappuram, including physical gold, gold savings accounts, gold ETFs, and gold bonds. Whether you are a seasoned investor or new to the gold market, this blog will provide valuable insights on how to make the most of your gold investment in Malappuram.

How To Check The Purity Of Gold In Malappuram?

Hallmark Check

Gold ornaments have a hallmark that represents their purity. They can be found inside the ring band, necklace clasps, and the middle of gold coins. The easiest way to determine purity is to perform a hallmark check.

Acid Test

The acid test requires nitric acid, hydrochloric acid, and a black stone. It should be performed in a well-ventilated room to avoid any hazards. Rub your gold against the black stone and spill a few acid drops on the rubbed area. If the gold is fake, it will instantly turn green.

Float Test

The density of gold is higher. If you put it in a bucket of water, it will sink to the bottom. Impure or fake gold floats on the surface of the bucket due to its lower-density metal.

Magnet Test

Gold has non-magnetic properties. It does not react when a magnetic bar is brought close to it. In case it sticks to the magnet, then it is considered to be fake gold.

Ceramic Test

You can conduct a purity test by scratching the product against porcelain tile, unglazed ceramic plate, or black stone. If scratching leaves a dark mark, it is impure. Try to avoid rough rubbing, as it will permanently damage the product.

What Are The Alternatives To Physical Gold?

Gold Futures

Gold futures are standardised contracts on the exchange in which you agree to buy or sell a specific quantity of gold at a predetermined price and date. It is the most effective way to mitigate the risks associated with spot trading. Gold futures provide leverage by allowing you to open a position on a larger quantity by paying a small margin. You can choose between cash settlement and physical delivery on the futures contract expiry.

Gold Savings Scheme

This scheme is available at many local jewellers. You can invest a small amount at regular intervals, similar to a SIP, and soon after the scheme matures, you can buy the gold for the total investment value. Gold savings schemes are often unregulated, and if the returns are comparable to bank FDs, you must prefer investing in gold saving schemes.

Sovereign Gold Bonds (SGBs)

They are government-backed security issued by the RBI. SGBs are available in units, each representing one gram of 24K gold. These bonds can be held for up to 8 years. It offers a 2.5% annual interest rate, payable every six months. SGB limits individual investment to 4kgs.

Gold ETFs

Gold ETFs, as the name suggests, are exchange-traded funds available on the NSE and BSE. A single unit of an ETF represents one gram of gold. You can easily trade in them without worrying about entry and exit fees. The income you earn from them is subject to long-term capital gains.

Gold Mutual Funds

Gold funds are known as mutual funds that invest directly or indirectly in gold reserves. Investments are typically made in the stocks of mining companies, physical gold, and syndicates that produce and distribute gold. It is a practical way to invest in a commodity without having to buy it in physical form.

Comparison Between 24K and 22K Gold

24K gold and 22K gold are two types of gold that are the purest forms of gold you can buy. The 24K gold is purer than the 22K gold type as it contains 99 per cent gold. The 22K gold items contain only 91.7 per cent gold and are less pure than 24K gold. 22K gold is sturdier and does not break easily. Therefore, it is used to make jewellery and wearable items. Gold bars and coins made for investment and storage purposes are made of 24K gold.

The BIS Hallmark certification signifies purity and checks any gold item. When buying gold jewellery, look for sure signs of purity. The signs of purity are discussed in detail further. Both gold jewellery and bars can be used for investment and as collateral for loans.

Why Does The Gold Price In Malappuram Fluctuate?

Interest Rate

Gold shares an inverse relationship with an interest rate. When interest rates fall, the returns on savings accounts become unappealing, and people turn to gold for investment, causing the price of this metal to rise.

Currency Fluctuations

Gold is traded on the international commodity market in USD. If the USD value rises concerning the Indian currency, gold imports will become more expensive, causing the price of the yellow metal to rise. The opposite occurs if the rupee strengthens against the USD.

Government Reserve

The central government maintains gold reserves through the RBI to deal with economic uncertainty. If the gold reserve ratio is increased at any time, there is a high risk of a supply shortage, resulting in a price increase.

Demand and Supply

Gold has wide applications due to its characteristics. Their primary utilisation is in industrial applications, electronics, and ornamentation. Given this, the demand for the yellow metal is always high. However, if there is an imbalance between demand and supply, the price will fluctuate.

Inflation

Gold prices typically increase along with high inflation rates. In times of economic uncertainty, investors frequently consider gold a safe investment.