Last updated on: 3th Feb 2023 10:00 AM
Raipur is the capital of Chhattisgarh and is a significant centre for the gold trade. The city has the largest population in the state and is amongst the top consumers of gold.
The gold rate in Raipur is constantly changing because of recent government policies, economic inflation, the international rate of gold, and the demand for gold amongst the population of Raipur. The citizens of Raipur mostly invest in gold through ornaments and jewellery.
People from diverse backgrounds invest in gold because it has sentimental value and is a sound investment. Compared to regular days, the demand for gold is much higher during festivals and auspicious events such as marriages.
Let us look at the price of gold in Raipur.
Demand: The primary factor that affects the gold rate in Raipur is the demand for gold. Although people purchase gold throughout the year, the demand is especially high during the festive and wedding seasons. People buy gold ornaments and jewellery in massive amounts during these periods. Since supply is limited, the price of gold rises.
Inflation: Inflation vastly affects the price of gold in Raipur and around the country. When inflation is high, the gold rate also increases. This is because investors tend to buy more gold as a protecting asset against inflation. After all, gold has a proven history of providing inflation-beating returns.
Government Policies and Taxation: The Government of India keeps reserves of gold through the Reserve Bank of India (RBI). When RBI purchases or sells more gold, the rate of gold gets affected. Changes in taxation and import regulations also impact the price of gold in Raipur.
After the Goods and Services Tax (GST) was introduced in 2017, the taxation process became much simpler. In the GST regime, gold buyers in Raipur now have to pay a GST of 3%. The final bill of the jewellery also includes a 15% import duty.
International Rate of Gold: India's gold mining capacity is far lower than its high demand, and thus, the government has to import gold from other countries. Therefore, the international rate of gold plays a huge role in affecting the gold rates across India.
Value of the US Dollar: The global gold trade is carried out in US dollars. Any change in the value of the US dollar impacts the value of the Indian rupee, which results in fluctuations in gold prices.
People love to buy gold jewellery during the wedding season. They also purchase gold coins and bullion as an investment to prevent inflation's adverse effects and overcome their own economic downstream.
The people of Raipur have started investing in newer forms of gold investments. These options prevent the hassle of storing physical gold and keeping it secure against theft or loss.
Gold Exchange-Traded Funds (ETFs): These funds are traded on stock markets similarly to shares. Physical gold and equities of gold mining and processing companies are the main underlying assets of gold ETFs. A Demat Account is required to trade in these funds.
Gold Mutual Funds: These are mutual funds that invest mainly in Gold ETFs and are handled by different asset management companies (AMCs).
Digital Gold: Various payment platforms like PayTM and PhonePe allow you to invest in digital gold. The gold you buy is stored in electronic form in your digital wallet. You can start your investment with as less as ₹1.
Sovereign Gold Bonds (SGBs): The Reserve Bank of India (RBI) issues these bonds regularly and are accessible for purchase from top public and private sector banks. They can be purchased at the issue price and redeemed for cash upon maturity.
The purity of gold is measured in karats (K). What determines the rate of gold is the purity level of the gold. The most commonly found purities of gold available in Raipur are -
24-karat gold: 99.9% pure
22-karat gold: 91.6% pure
18-karat gold: 75% pure
14-karat gold: 58.5% pure
A hallmark can validate the purity of gold. In India, the Bureau of Indian Standards (BIS) evaluates the quality of gold and certifies it via hallmarks. The presence of the BIS logo validates that the gold is of high quality.
Gold is a natural resource mined from the earth's reserves. Hence, gold prices in Raipur largely depend on the supply. If there is a lesser supply of gold, gold prices may decrease.
On the other hand, the demand for gold increases during festivals or when the people of Raipur buy gold to hedge against a bearish market. In such times, the higher demand causes gold prices in Raipur to rise.
Once upon a time, India had adequate gold reserves. But the situation has changed now; Most of the gold we buy today is imported in its natural form. Hence, import rates are a vital factor in determining gold prices in Raipur. Higher import rates could mean a higher gold price and vice-versa.
Gold is an internationally traded commodity. Most countries, including India, buy gold in the U.S. currency. This means the value of the U.S. dollar has a direct or indirect impact on gold prices. In India, the relation could be inversely proportional; when the dollar is weak, India could buy gold at a lower price. Hence, the strength of U.S dollars also affects gold prices in Raipur.
When the relationship between two countries is affected, it could halt or negatively impact the smoother import and export of gold. This, in turn, may spike the gold rates.
We need to understand the relationship between gold prices and the Indian jewellery market, owing to Indian cultural beliefs. In India, gold plays a crucial role in household life, especially during the festive season and wedding season. As a result of the higher demand for gold during the festive season, gold prices go up as a result. According to a report released in 2019 by the World Gold Council (WGC), Indian households own around 25,000 tonnes of gold, which makes them the world's largest gold collectors.
|Day||24K Gold||22K Gold|
|04 Feb 2023|
|03 Feb 2023|
|02 Feb 2023|
|01 Feb 2023|
|31 Jan 2023|
|30 Jan 2023|
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|26 Jan 2023|
The IBJA (The Indian Bullion Jewellers Association) plays a vital role in determining the daily gold rates in Raipur. IBJA consists of the country's most prominent gold dealers. They account for the lion’s share of gold that is sold and bought in the country and hence, has the power to determine the gold price across the country.
Banks are the largest importers of gold in the country. However, they add a fee to the imported gold before selling it to a supplier, increasing the purchase price at the source. By the time it reaches you, the price you pay for gold includes various charges. For instance, when you buy gold jewellery, you may also need to pay a making price.
Both gold and fixed deposits are popular investment instruments. However, both share some differences, too. To begin with, returns from FD are guaranteed and fixed. Market fluctuations or economic conditions don’t affect your interest income.
On the other hand, gold rates can fluctuate. This is because gold rates get decided daily. They could go up or down based on economic conditions. But per historical trends, gold rates have always gone up in the longer term.
|Day||24K Gold||22K Gold|
|01 February 2023||5636||5368|
|07 February 2023||0||0|
Gold is valuable only when it is pure. There are instances where customers are duped with impure gold. Hence, confirming the purity of gold is crucial.
The Bureau of Indian Standards (BIS) is a government authority that certifies the purity of gold. According to BIS, the following factors are to be kept in mind when buying gold.
Jewellery hallmarked by BIS will have a BIS logo on it. Remember that since BIS is the only authorized laboratory in India for gold certification.
Karat is a scale to gauge gold's purity. While 24 karat gold is the purest, it is too soft for use. Hence, other metals are added and the gold available in the market is often 22 Karat.
The gold you buy should also carry an identification mark by an authorized jeweller. This helps ensure the gold is from a credible source. The mark can also be helpful in the case of disputes.
Q1. Should I purchase 24-karat gold or 22-karat gold?
Q2. What hallmarks are present on gold jewellery?
Q3. What regulatory body is in charge of the gold market in India?
Q4. Which is better a gold loan or a personal loan?
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