Gold rate in Rajkot

Known for being a renowned manufacturing hub for water pumps, diesel engines, ceramics, and textiles, Rajkot is one of Gujarat's major industrial cities. It is located in the center of the Kathiawar peninsula.

Besides being one of the country's cleanest and fastest-growing cities, Rajkot is also renowned for its thriving gold market. The demand for gold in Rajkot witnesses a spike during weddings and festive seasons. A combination of factors impacts gold prices in the city, which fluctuate regularly.

So, let us look at the current gold rates and the top reasons behind gold price fluctuations in Rajkot.

Factors Affecting Gold Prices in Rajkot

Many factors affect the gold rates in Rajkot. Here is a quick look at some of them:

Interest Rate

Interest rates and gold prices have historically had an inverse relationship; with rising interest rates, people typically prefer selling gold or gold ornaments to make more money. However, as the interest rate falls, more people choose to purchase gold, driving up its demand and price.

Inflation

The rising costs of goods and services can immensely impact gold prices. Gold rates typically change in direct proportion to inflation. In other words, higher inflation levels increase gold prices. This is because gold has historically acted as a hedge against inflation. People tend to fall back on gold when other investment options fail to generate inflation-adjusted returns.

Government Reserves

The Reserve Bank of India holds substantial gold reserves. When the RBI purchases more gold than it sells, the price of gold rises. This occurs due to a shortage of gold or gold products at a time the market experiences an increase in cash flow.

Currency Fluctuations

USD is the currency used to trade gold on global markets. INR is converted into USD during import. The import price of gold can therefore be impacted by changes in the USD or INR, which will then have an impact on the selling price.

Indian Jewellery Market

Indian households have traditionally seen gold as a strategic asset. Hence, gold has a unique position in Indian households. When the demand for gold increases during festivities, its price also rises.

Geo-Political Factors

India is one of the biggest consumers of gold. Hence, any fluctuation in the gold rates internationally will impact its price in the country. Additionally, investors view gold as a safe option during times of political unpredictability. With more people investing in gold, the prices may also shoot through the roof.

Investment Options for Gold in Rajkot

There are various ways to invest in gold in Rajkot. Physical gold is one such option. Traditionally, it has been the most popular choice. However, investors nowadays have more options available. Here's a sneak peek into some of them:

• Sovereign Gold Bonds (SGBs)
  These are Government securities with physical gold as their underlying asset. The Reserve Bank of India (RBI) releases SGBs regularly. You can buy them at top public and private sector banks. On maturity, you can redeem these bonds in cash form.
• Gold Exchange Traded Funds (ETFs)
  Gold ETFs are units of physical gold traded on the country's leading stock exchanges. Here one unit equals one gram of physical gold.
• Gold Mutual Funds
  Gold mutual funds invest primarily in Gold ETFs. Like regular mutual funds, different asset management companies (AMCs) manage them.

Understanding 916-hallmarked Gold Prices in Rajkot

Anyone looking to buy gold should be familiar with the 916 gold rates in Rajkot. However, it's a term that baffles most investors. Let us now find out what it means.

Since purity levels determine gold prices, knowing the meaning of hallmarked 916 gold is crucial. Remember that the unit of Karat determines the purity of gold. For instance, 24-Karat gold is considered 99.9% pure. In other words, it is the purest form of gold. But despite the high levels of pure gold present in this form, it is not used for making jewellery. That's because 24-Karat gold is too delicate to be used in ornaments.

Jewellers prefer another variant - the 22-Karat gold. It contains 91.6% gold mixed with other alloys. This combination ensures sturdiness, making it the most preferred choice among jewellers. The number 916 is an ode to the percentage of pure gold in 22-Karat gold. On the other hand, hallmarking is simply a stamp or mark of the gold's purity and fineness.

The Indian Bureau of Standards certifies the purity of gold in India. So, check the 916-hallmark before buying gold in Rajkot.