Gold rate in Mandya

This famous city Mandya, having the title of Sugar City, is located in Karnataka. It is also called the land of five rivers as it is located near Cauvery, Shimsha, Lokapavani, Veeravaishnavi, and Hemavathi, giving a great religious significance. 

Like any other part of India, Mandya also has a great love for Gold or Aurum (Au). Human relationships, or it can be said our love affair with gold, is not a new thing. It has been evolving for so long. Now it can be purchased in exchange for currency; however, if we look back, we can see it was a currency a few centuries back. Gold comes as a helpful asset during the financial crisis as it is highly liquid.

Ways to Invest in Gold in Mandya

The investment gives us security for the future. If you’re thinking of investing in gold, here are ways you can do it.

Physical Gold

It is the easiest and most traditional way to invest in gold but with so many disadvantages. An investor needs to pay making charges as high as 30% while purchasing physical gold, mainly ornaments. Moreover, physical gold has risks of wear & tear, storage cost, theft, etc.  Purchasing a gold bar or coin is a good option as there are lesser making charges.

Gold Exchange Traded Fund

Gold ETFs are passive investment options based on physical gold prices. It represents physical gold in paper form or dematerialised form. Instead of buying physical gold, an investor buys traded funds pegged into the stock market.

Gold Mutual Funds

Gold mutual are a form of mutual fund where you invest the money with the fund manager. The money gets further invested in physical gold. Gold mining companies and other investment options directly or indirectly relayed to gold.

Sovereign Gold Bonds

SGBs are a great substitute for physical gold as investors buy government securities in terms of Gold. On maturity, Investors can encash the bond in cash. It is issued by the Reserve Bank of India (RBI) with assured interest per annum. 

How To Check the Purity of Gold in Mandya? 

Gold is one of the costliest metals on the earth, and having physical gold can also improve social status, but scams and fraud can happen to anyone. So it is a must to check the purity of gold before purchasing it. 

There are several ways one can test the purity of Gold. 

• Always go to a trusted jewellery shop and make sure to check every detail yourself while purchasing. 
• Always buy BIS-hallmarked gold.
• Look for alternative investments like Gold ETF, Gold mutual funds, Sovereign gold bonds, etc. 
• Ask the seller to do the purity check through the machines in front of you.

How is the Gold Price in Mandya Fixed?

The gold price is something that fluctuates daily. Several things have an impact on determining the gold price. Three major factors determining the gold rates in Mandya are demand/supply, rupee value against the dollar, and geo-political situations. 
Mutual funds, Gold ETFs, share markets, and SGBs also determine Gold's ultimate value. 

Impact of GST on Gold Rates in Mandya

GST is an indirect tax people must pay while buying physical Gold. Before the implementation of GST, 1% VAT & 1% service charge were charged on Gold. However, that was not uniform. Every state had different tax slabs for Gold purchases.
After the implementation of GST on Gold, the tax rate jumped to 3%, which is higher than the previous tax rate. It significantly impacted the gold rate. However, GST has simplified the process for both buyer and seller. 

Some Interesting Facts on Gold in Mandya

If you are looking for some interesting facts about gold, here it is:

• Gold is malleable, yellowish, and virtually indestructible.
• The first gold coin appeared around 700 BC.
• After a time, the world will run out of minable gold, though the exact time is unknown.
• An Egyptian alchemist, named Zosimos found pure gold for the first time.
• Gold can be created from some other elements.
• Egyptians used gold for the first time as an ornament.
• For 5000 years, gold has been existing on earth.

What Leads to the Increase of Gold Rates in Mandya When the Stock Market Falls? 

The performance of other markets, such as the stock market, mutual funds, and the currency market, plays a vital role in deciding the gold rate. During an adverse price movement in other markets, investors opt to invest in gold. Investors believe that as the market is going down, it is better to invest in gold. 

Investors invest money with one motive to earn better returns. When the share market falls, they switch over to gold, increasing the demand. As the gold demand increases substantially, gold rates in Mandya increase.