Gold rate in Navsari

Navsari, also known as Naosari, is one of the biggest cities in Gujarat. It is located in the coastal lowland in the southeastern part of this west-central state. According to the 2001 Census of India, Navsari is the tenth most populous city in Gujarat. It emerged as the twenty-third cleanest city in India as per Swachh Bharat Urban mission. Navsari is located between Mumbai and Surat. It is just 37 km away from Surat. 

This city has emerged as an important economic hub for textiles, agro and food processing industries, and sugar, diamond, and pharmaceutical businesses. Other industries related to marine and minerals also play important roles. Gujarat's largest export-oriented floriculture project named Best Roses is situated here. Navsari district has also emerged as the largest producer and exporter of Chikoo fruit in India. The presence of 23 medium-to-large industries, including Tata Steel, Mafatlal Industries, Gufic Biosciences Ltd, and 7,525 small-scale industries have helped Navsari’s economy to prosper. 

This economic prosperity has made more and more people in this city buy gold jewellery and also invest in alternatives to physical gold. The demand for gold in this city jumps during the wedding seasons (November to February). It also makes the gold price rise significantly during this season in Navsari. During Makar Sankranti, Pushyami, and other festivals the demand for gold rises significantly. 

Jewellery showrooms in Navsari don’t usually provide the best resale value for gold jewellery. They usually buy gold from you at a price that is a few per cent less than the ongoing selling price of gold. That’s why more and more millennials and others in this Gujarat city invest in alternatives to physical gold. 

They invest in physical gold alternatives (such as digital gold, SGBs, etc.) for diversifying their portfolio, hedging against inflation, and preserve wealth in the long run. As inflation in India rose over 6% in 2022 and the global political-economic stability has increased due to the Ukraine-Russia War, more people in Navsari are investing in gold. 

Do you also want to invest in yellow metal? If yes, you should have a clear understanding of the gold rate in Navsari as well as the historical prices. To time your entry into the market, it is very important for you to have a clear idea about the influencing factors to gold demand. So, before checking today’s gold rate in Navsari, let’s try to understand the factors that influence the demand for gold in this Gujarat city. 

Impact of GST on Gold Rate in Navsari

When you buy gold jewellery in Navsari, you’ll have to pay:

• GST of 3% on gold
• GST of 5% on gold jewellery-making making charges
• Customs duty of 7.5% on gold
• Additional cess called AIDC (Agriculture Infrastructure And Development Cess) of 2.5% above it
• When compared to the VAT regime (before GST was implemented), GST has made gold costlier by around 1.15% to 1.24%.

Understanding Demand For Gold In Navsari

The major factors that affect demand for gold demand in Navsari, Gujarat, are:  

As most of the gold in India is imported, the cost of import plays an important role in the demand. The higher the import cost, the lower the demand for gold.

A rise in the price of gold in the international market also lowers the demand in Navsari and other places in India. 

When the inflation rate is high more people buy gold because it is considered an inflation hedge. In the long run (say, last 20 years), the annualised ROI of gold investment in India is 12.51%. It is much more than the prevailing 6-7% p.a. inflation rate in India.

RBI’s policy adoption also affects the demand for gold in Navsari.

As uncertainties (both political and economic) rise, the propensity to invest in gold rises. This is because people consider gold as a store of value. The Russia-Ukraine war has increased uncertainty globally. This has increased the demand for gold. 

Local factors such as weddings and festivals also affect the demand for gold in Navsari. That’s why the demand for gold jewellery increases significantly during peak wedding season (Nov-Feb). Festivals when gold demand in Gujarat increases are Pushya Nakshatra, Makar Sankranti, Akshaya Tritiya, Dussehra, Eid, Diwali, New Year, and Dhanteras.

Comparison Between 24K and 22K Gold

24K gold is the purest form of gold. It has 99.9% pure gold. Gold jewellery is not usually created from this type of gold because pure gold is soft and therefore not suitable to create intricate designs. 

22K gold consists of 91.67% pure gold. It is also called 916 gold. The remaining 8.33% part consists of other metals including zinc, copper, etc. Other metals are used to make the gold harder so that intricate designs can be created by the jewellers. It is the most popular form of gold used to create jewellery. 

5 Interesting Facts on Gold

Let's explore some of the most interesting facts about gold:

• Gold is used for making a special, stained glass work having a rich, red colour. 
• Since the fourteenth century, hallmarks have been used to authenticate gold’s purity. 
• According to estimates, more than 170,000 metric tonnes of gold have already been extracted. 
• China is the largest gold producer in the world.
• The largest consumer of gold in the world is India.