Gold rate in Parbhani

Parbhani is one of the biggest cities in Maharashtra. As a commercial and industrial centre, Parbhani's significant industries are cotton ginning and pressing. There are several landmarks in the city, including Shivaji Udyan (Shivaji's Garden) and the fort of Roshan Khan.

Gold is considered a symbol of affluence and prosperity in Indian culture. Just like the other cities in Maharashtra, residents of Parbhani are also enticed by gold.

Despite being a lucrative investment, gold is known for its market volatility. Gold prices can fluctuate depending on the demand-supply ratio or the rupee-dollar valuation. In India, the rates are also affected by festivities. For example, people worship the Goddess Lakshmi and Lord Vishnu on Akshaya Tritiya. As part of the celebrations, they invest in gold. This can impact gold sales and, in turn, the market value.

Difference between 22-Karat and 24-Karat Gold

Karat is a unit defined to measure the purity of gold. As the value of the karat goes up, the purity levels increase.

• 22K Gold: 22 parts of gold are mixed with 2 parts of another alloy (copper, silver, zinc or nickel) to make it more malleable. It is also termed 916 gold, as it contains 91.6% pure gold.
• 24K Gold: This is the purest form of gold, as it is not mixed with any alloy. It is 99.9% pure.

Here is a quick glimpse at the differences between 22-karat and 24-karat gold:

1. Purpose: 24K gold can be used for investment purposes alone. However, 22K gold can be used for both investment and jewellery.
2. Cost: 24K gold is more expensive than 22K gold.
3. Durability: 22K gold is more durable than 24K gold. 24K gold is too delicate to be moulded into intricate jewellery designs.

What are the Factors Affecting Gold Prices in Parbhani?

1. If market interest rates go up, people might get better returns from other investments. This might reduce the investment in gold, which can impact the gold rates.
2. GDP growth and unemployment in a region can push gold prices down. However, if the growth is good, it can result in higher gold rates.
3. The demand-supply ratio of gold as a commodity can impact the rates significantly.
4. If there is general inflation in the country or state, it can lead to higher gold rates. If all assets are generally expensive, you will notice that gold rates go up too.
5. If the Indian rupee is weaker than the US dollar, it can lead to increased gold rates. The rupee-dollar valuation significantly impacts gold prices in India.
6. A politically unstable situation can also impact gold rates.

How Does GST Impact Gold Rates in Parbhani?

After the implementation of the Goods and Services Tax (GST), the price of gold has increased.

You now have to pay a 3% GST on all gold purchases, in addition to import duties, which are as follows -

• Customs Duty - 12.5%
• Agriculture Infrastructure and Development Cess (AIDC) - 2.5%
• Social Welfare Surcharge - 10% of Customs Duty

Investment Options for Gold in Parbhani

1. Exchange-Traded Funds (ETFs): Gold-based ETFs are excellent for investing in gold. A gold ETF is similar to digital gold, where you invest and get a certificate claiming that you own a specific amount of gold. You can trade ETFs just like shares in the market or immediately exchange them for cash.
2. Physical Gold: As a traditional investment mode, you can purchase gold coins, bars or ornaments. But you need to take extra care of these assets. It is preferable to insure them against loss or theft.
3. Gold Futures: Here, you have to speculate the price trend for gold. When you buy a futures contract, you will profit when the commodity price rises more than the speculated price. Investing in this form requires expertise in the trade, which is why gold futures are ideal for experienced traders and financially literate people.
4. Gold Mutual Funds: Investing in gold through gold mutual funds is quickly gaining popularity. Gold mutual funds are preferable to purchasing physical gold because they have features like low minimum investment requirements, diversification, no Demat account necessary, and SIP growth.
5. Sovereign Gold Bonds (SGBs): A person resident in India as defined under Foreign Exchange Management Act, 1999 is eligible to invest in SGB. Eligible investors include individuals, HUFs, trusts, universities and charitable institutions. Individual investors with subsequent change in residential status from resident to non-resident may continue to hold SGB till early redemption/maturity.

Apart from the options mentioned above, one can also invest in gold options and digital gold through financial platforms.

Note: All these investments are subject to market risk.