Gold rate in Murwara

Murwara also referred to as Katni, is a town located in an upland basin of the Katni river, in the eastern part of Madhya Pradesh. If we trace back to historical times, this city belonged to a wealthy Brahmin family. An ancestor of the family had lost his head in a battle, and that is how the city derived its name – Murwara (mund meaning ‘head’). Currently, the city has its railway junction, named Katni Murwara, and has emerged as a leading trade centre – including industries such as rice and flour milling. 

Factors determining the demand for Gold in Murwara, Madhya Pradesh

In India, gold trading takes place in the Multi Commodity Exchange (MCX), India’s largest commodity exchange market. In India, the Indian Bullion and Jewellers Association (IBJA) has a key role to play in determining gold rates in India, daily. There are also a host of other factors that help us to understand the demand for gold in Murwara, Ujjain. 

We know that the natural gold reserves in India are diminishing, harming the production of gold compared to our past. This means that India has to import gold from other countries, which makes import rates an important determinant of gold prices. Hence, the higher the import rate, the higher will be the price of gold, and vice-versa, in all parts of India. This also indicates that international markets impact gold rates in India. 

The rate of gold in India is dependent on the performance of the U.S. dollar. There exists this relationship as gold is the common medium of exchange in the international market and the U.S. dollar is the preferred international currency. Hence, any change in the U.S. dollar is bound to impact gold rates.

Conflicts and tensions between two nations can increase gold rates. For example, if India has cold relations with any of its gold-supplying nations, then it can affect the supply of gold, which in turn pushes up the gold rates in India. 

Gold as a commodity has become scarce over the years, and also the supply of new gold is not constant with only a few nations having enough gold reserves. A change in the supply and demand equation also changes the price of gold, especially in India which imports gold from other nations. 

Some interesting facts on Gold and Gold rates-Murwara vs other cities

Gold is the most famous and preferred form of jewellery for most Indians. This highly

precious yellow metal lies deep in the Earth. Some interesting facts about Gold are-

1. Gold is the most ductile metal ever known. A wire of 2 km can be drawn from just a gram of gold.
2. The boiling point of gold is extremely high. It is 2808℃.
3. It is an optimum choice for jewellery because it is unaffected even after being exposed to humidity, dust, or other gases in the atmosphere.
4. Gold is believed to have come from meteorites. The surface of the Earth was enriched with precious metals after the meteorites bombarded approximately 200 million years ago.

As told earlier, gold prices are not fixed but dynamic in the Indian market, i.e., they keep changing every day.

Gold vs other Investment Options 

Gold is considered to be one of the most crucial. Besides gold, other investment options offer similar and, at times, better returns. There are options like – Direct Equity, Mutual Funds, Fixed Deposits, Real Estate, RBI bonds, etc. to name a few. 

Investing a hefty amount in metals comes from the traditions of India. Investing in gold is a good choice for a long-term investment because the return is guaranteed and the value is unlikely to decrease. People usually invest in the form of physical gold either by buying jewellery or buying gold in bullion. The investment that was prevalent in the form of physical possessions has now taken the form of stocks. Investing in precious metals like gold is likely to keep you on the safer side. The return is usually good, the value is maintained and the fluctuations are not sudden, unlike other stocks. 

People usually search for many other investment options like real estate or some other metals like silver. Investing in silver may not look lucrative but it is cheaper than gold and hence affordable for many people. Also, a good investment with proper planning in real estate can give profitable returns. 

Impact of GST/Central Bank Policies on Gold Rate in Murwara

The introduction of GST has deeply impacted every sector of the Indian economy. Similarly, gold rates are also affected due to the levy of 3% GST charges. This has increased the purchase price of gold and also had an impact on the import of gold, impact on the making charges of gold jewellery, and other related markets.