Gold rate in Mysore

Mysore, is one of the most beautiful cities in India, with a rich history rooted in art and culture. It boasts the beautiful Mysore Palace, which houses the famous Golden Throne. Made of solid gold, this throne weighs over 70 kg! It is open for public viewing during the Dasara celebrations at Mysore Palace.

Mysore is the third largest city in Karnataka. It gets the lion’s share of its business from IT and tourism. The heritage of the city draws in millions of tourists every year. The continuous influx provides an incentive to the traditional craft forms in Mysore and boosts the gold demand in the city.

Read ahead to learn about the current rates in the city, the factors that influence the gold rates and the best options for buying gold in Mysore.

Factors Affecting Gold Prices in Mysore

1. Inflation
   Inflation eats into the value of money. Because there is a consistent increase in the average price level, the real value of money falls. At times like this, it is ideal for storing your savings in forms other than cash. Gold is the perfect solution. 
   There is a direct relationship between the inflation rate and gold price. If inflation increases, the cost of gold rises, and vice versa. Fluctuations in gold prices often accompany the monetary policy decisions of the Reserve Bank of India (RBI).
2. Seasonal demand
   Indians tend to consume a lot of gold during the festive season. There is a higher demand during Dhanteras and Diwali as people rush to mark the auspicious occasions with gold purchases. 
   The interaction between demand and supply influences the price of any commodity. As the supply of gold is generally constant, any uptick in demand pushes up the average cost of gold.
3. Market volatility
   During instability and volatility, people tend to look for safe shelters. If there is any political unrest in the country, or if people expect the stock market to crash, there will be a migration in investor assets towards gold. The demand for gold increases during such times, and so does the price of gold.
   In comparison, when the economy is prospering and there is high production and demand, investors reduce their investments in gold and shift towards asset classes with higher risk exposure.
4. Government policies
   Government policies significantly impact most sectors of the country, and gold is no different. The Government of India uses gold as an instrument to control inflation. 
   The government tends to increase interest rates when the inflation rate is on the higher side. People opt for more debt-based investment assets and buy bonds and fixed deposits. Loose cash reduces in the hands of people, and the demand for gold falls. The opposite happens when the government lowers interest rates.
   Thus, the changes in government policies influence the demand for gold and, indirectly, its price.

How Does GST Impact Gold Rates in Mysore?

There are two separate GST charges on gold that buyers of the precious metal must pay in Mysore. First, a 3% GST is levied on the price of gold. Secondly, the jeweller charges a 5% GST for gold ornaments on the making charges. Making charges refer to the cost of moulding raw gold into jewellery.

Three types of import duties are applicable on gold imports to India - Customs Duty (12.5%), Agriculture and Infra Tax (2.5%), and Social Welfare Surcharge (10% of Customs Duty).

Investment Options for Gold in Mysore

Gold is trendy in Mysore. However, it should be noted that the popularity is in terms of gold jewellery or gold ornaments, not gold investments.

The concept of gold as a form of investment is still novel among many people. The fact that you can buy gold digitally or invest in a gold exchange-traded fund (ETF) is not as well-known as the value of gold ornaments. Most people would still opt for physical gold — be it gold coins or gold jewellery — to hold it as an investment asset.

There are several different options available for gold investments in Mysore -

1. Digital gold
2. Gold mutual funds
3. Gold ETFs
4. Sovereign gold bonds
5. Gold saving schemes

Understanding 916 Hallmarked Gold Prices in Mysore

916 hallmarked gold refers to 22-karat gold since 22-karat gold is 91.6% pure by volume.

In terms of investment, 24-karat gold is more popular. But when it comes to making jewellery, 22-karat gold is preferred. The trace metals in the alloy add to the gold's strength and durability and make it easier to mould into ornaments.

The 916 hallmark is provided by the Bureau of Indian Standards (BIS), which authenticates the gold's purity.