Gold Rate Today in Panaji

Panaji, the capital of the western state of Goa, lies on the bank of the Mandavi River. Initially, a hub for administration, Panaji's commercial significance increased in the 1970s with the building of an adjacent industrial zone and the boosting of tourism. The area is home to numerous Portuguese and Maratha ruins.

A recent study by Goa University found gold traces in the iron ore mined and sold from the coastal state's mining sites. The demand for gold in Panaji has thus spiked as a result.

Residents of Panaji find gold to be a popular investment strategy. It is simple to locate a place to buy gold in the city because of the abundance of jewellers and gold stores. As a way to save and safeguard their money, Panaji's residents have historically invested in gold. Gold investments in Panaji are in both physical as well as digital forms. Read on to learn more about gold rates in Panaji and how you can start your investment journey.

Taxes Levied on Gold in Panaji

The tax charged on buying physical gold in Panaji is as follows:

Import Duty 

Imports meet the majority of the Gold demand in India because domestic gold mines do not meet the country's high gold demand. Because most of the gold is imported, import duties apply. The current import duty on gold is 12.5%

Development of Agriculture Infrastructure Cess (AIDC)

The Government of India collects the AIDC to use for national development. The AIDC rate for imported gold is 2.5%.

Goods and Services Tax (GST)

When jewellers or other merchants sell gold, the GST is applied. This cost is transferred to the final customer. On purchases of physical gold, a 3% GST is applied.

Adding GST and Charges

Making fees are not taxes, but there is a fee for creating the gold into coins or jewellery. The making fees are subject to an additional GST. The GST cost for this charge is included in the making charges column on the final bill when you buy gold. The making charges for gold jewellery are between 8% to 35%. The GST on making charges is 5%. 

Source-Deducted Tax (TDS)

TDS of 1% is applied for purchases of physical gold that cost more than INR 1 lakh. The annual tax obligation may include this sum.

How is the purity of gold assessed in Panaji?

The Bureau of Indian Standards (BIS), a government agency, verifies the purity of gold. According to BIS, the following aspects should be considered by buyers of gold.

BIS Label

Jewellery that has been BIS hallmarked will bear the BIS logo. This mark is mandatory as BIS is the only recognized authority in India for gold certification.

Karat

The purity of gold is measured using the karat scale. Despite being the purest, 24-carat gold is too delicate to be used. As a result, more metals are added, and the market's gold is frequently 22 Karat.

Mark for Jewellers' Identification

Additionally, the gold you purchase needs an identity mark made by a licenced jeweller. This makes it easier to verify the gold's legitimacy. In the event of a dispute, the mark can come handy to identify the seller.

Factors That Impact Gold Prices in Panaji

Detailed here are some of the most crucial factors that impact gold prices in Panaji:

Inflation

Inflation is the rise in the cost of goods and services. It can significantly increase gold prices. The price of gold typically changes in direct proportion to inflation. This means that higher inflation causes gold prices to rise since the value of money decreases. 

Rate of Interest

Under normal circumstances, interest rates and gold prices have historically had an inverse relationship. Investors sell gold when interest rates rise to make more money. However, as the interest rate falls, more people choose to purchase gold. This drives up both its demand and price.

The Market for Indian Jewellery

Panaji's households have historically seen gold as a strategic asset. Gold has a unique position in Panaji. It is used during elaborate wedding ceremonies and as jewellery during significant festivals like Diwali. As a result of the increased consumer demand, gold prices rise throughout the wedding and festival seasons.

Protection Against Uncertainty

When the market is volatile, people frequently choose to invest in or purchase gold as a commodity. The value of gold is consistent over a long period. This makes it a better option than other assets.

Geopolitical Condition

Investors view gold as a haven during political unpredictability or geopolitical unrest. This increases demand and leads to a price rise. Gold demand in Panaji tends to increase during such crises, making it a crisis commodity for parking funds. 

Exchange Rate Impact on Gold

Given that the vast bulk of physical gold is imported, the price of gold in rupees will rise as the rupee depreciates versus the dollar. Therefore, a falling rupee could reduce India's appetite for gold.