Gold rate in Raichur

A vibrant city in Karnataka, Raichur, is of great historical significance. It is also home to a few gold mines in Hutti that date back to the pre-Ashokan era. In addition, the city has a gold refinery. Hence, it is not surprising that Raichur has a thriving community of gold sellers and buyers. 

Various factors, both domestic and international, impact gold prices in Raichur. For instance, the wedding and festive seasons witness an increase in the demand for gold. As a result, the prices also go up. 

So, let's now look at the current gold rates in Raichur and find out what causes them to fluctuate.

Difference Between 22-Karat and 24-Karat Gold

22-Karat and 24-Karat gold are the two main variations available in Raichur. 

22-Karat gold is also known as "916 gold" because it has a purity of 91.67%. Gold is mixed with other alloys to ensure sturdiness and durability. Hence, most jewellery items are made with 22-Karat gold.

On the other hand, 24-Karat gold is 99.9% pure gold and thus denotes gold in its purest form. 

Hence, purity levels differentiate the two gold variants.

Moreover, 24-Karat gold is great to invest in but not ideal for making jewellery pieces. In contrast, 22-Karat gold is the jeweller's preferred choice. 

How is the Purity of Gold Evaluated in Raichur?

There are several ways to evaluate the purity of gold.

1. Touchstone:- A touchstone is a small piece of black stone that is rubbed against the gold. The streaks left behind on the touchstone will help determine the gold's purity.
2. Magnet:- Another way to test the purity of gold at home is by using a magnet. If the gold is attracted to the magnet, it is not pure.

Besides these, the easiest and the most fail-proof way to ascertain the gold is by checking its hallmark. The Bureau of Indian Standards (BIS) provides hallmark certification for gold in India. Additionally, you can also take your gold to a jeweller or goldsmith and have it professionally tested.

How Does GST Impact Gold Rates in Raichur?

The GST implementation has impacted the cost of buying gold in Raichur.

Before the introduction of GST, buyers had to pay a 10% import duty, 1% customs duty, and 1.2% value-added tax (VAT) on their gold purchases.

After the GST implementation, buyers must pay a 12.5% import duty and 3% GST on the total price. Further, a 5% GST on making charges will also apply if they want to use gold to make jewellery items.

Hence, as observed, the tax burden on gold purchases has increased since the GST introduction.

Investment Options for Gold in Raichur

You can invest in gold in various ways in Raichur. Let's look at some of them:

• Gold Jewellery
  A significant number of people in Raichur invest in gold jewellery. However, owning gold in jewellery form comes with a few challenges. For instance, gold jewellery involves making charges, occupies storage space and may attract theft.
• Gold Coins
  Gold coins are also popular in Raichur. One can purchase gold coins from banks, jewellers, and online dealers. They are of 24-Karat purity and carry tamper-proof packaging and advanced counterfeit features.
• Gold ETFs
  Gold Exchange-Traded Funds (ETFs) are units representing physical gold. They are traded on stock exchanges and can be bought and sold like shares.
• Gold Mutual Funds
  Gold mutual funds are types of mutual funds that invest in gold ETFs or stocks of companies engaged in producing, mining and marketing gold products. The underlying asset of these funds is physical gold.