Gold rate in Ratlam

Ratlam, historically known as 'Ratnapuri', is a city located in the Malwa region of Madhya Pradesh. It is famous for its precious gold jewellery, Ratlami Sev, Saros, and many spiritual and tourist attractions.

Like the rest of India, gold is integral to Ratlam's culture and history. During wedding seasons and festivals, the demand for gold increases significantly. On such occasions, people buy physical gold in significant quantities. However, physical gold alternatives, like digital or paper gold, are also getting popular.

Are you planning to invest in gold in Ratlam? Check the gold rates in Ratlam and learn what factors impact them.

How to Invest in Gold in Ratlam?

There are different ways to invest in gold in Ratlam. Traditionally, physical gold like jewellery or coins has been a popular choice. But, now digital and paper gold is in demand too.

• Physical Gold
  You can buy physical gold from jewellers or financial institutions like banks and Non-banking Financial Companies (NBFCs). One disadvantage of owning gold in physical form is the risk of theft. In addition, it occupies space ,and you must find a place to store the gold securely. Prompted by these reasons, several people in Ratlam are turning to physical gold alternatives.
• Gold Exchange Traded Funds (ETFs)
  Gold ETFs are paper or dematerialised units representing physical gold. Like regular ETFs, these are traded on stock exchanges. Each branch of the ETF equals one gram of physical gold of high purity. To invest in gold ETFs, a Demat account is mandatory.
• Gold Mutual Funds
  Gold MFs are mutual funds that invest in shares of companies engaged in gold production, mining and manufacturing. The underlying asset of the fund is physical gold.
• Sovereign Gold Bonds (SGBs)
  Issues by the Reserve Bank of India, SGBs are Government securities denominated by physical gold. Hence, it is yet another alternative to buying gold in its physical form. However, remember that you can redeem your investment only in cash.
• Digital Gold
  Digital gold is a way of investing in gold virtually—several online platforms in India trade in digital gold. The best is that you can buy and store your gold in a vault, secured and provided by the seller.

What Factors Affect Gold Rates In Ratlam?

Multiple factors impact gold prices in Ratlam. These include the following:

• Local and domestic factors
• International factors

Local and Domestic Factors

• Many cultural, traditional, and religious factors affect gold prices in Ratlam. For instance, during the wedding season, people go on a gold-buying spree. As per the All India Gem & Jewellery Domestic Council's VC, around 15-20% of an average wedding budget is spent on jewellery. When there is rising demand for gold, jewellers hike the prices.
• The cost of transporting gold to Ratlam entails added costs which, in turn, drive up gold prices.
• Local taxes (including cess and special duties and taxes) also impact the gold prices in the city.
• The implementation of GST (Goods and Service Tax) in 2017 increased gold rates in Ratman by over 1.33%.
• When inflation rises, people in Ratlam tend to buy and hold gold. This is because they believe gold acts as a hedge against inflation.
• RBI (Reserve Bank of India) holds gold reserves. When it procures and contains more gold, the price of gold increases.
• Any economic and political instability in India makes people want to preserve their wealth. At such times, they invest in gold, which has historically given more stable returns than other investments.

International Factors

Besides the above domestic factors, a few international elements cause gold prices in Ratlam to fluctuate. Here is an overview:

• The cost of gold depends upon the international market because India imports most of its gold. Hence, when gold rates increase globally, they will likely go up in India.
• The strength of the Indian currency (₹) against the US Dollar (USD) is another impacting factor. As mentioned, a large chunk of India's gold demand is met by importing gold. When USD strengthens against ₹, the import cost of gold increases. It ultimately increases the gold rate in Ratlam and other cities in India.

Interesting Facts on Gold in Ratlam

Here are some interesting facts about gold in Ratlam that many of you didn't know:

1. In Ratlam's Mahalaxmi temple, gold jewellery is offered as prasad to the devotees. During Diwali, devotees offer cash and jewels to seek grace from the "Goddess of Fortune."
2. Gold jewellery has a purity index of around 92% in Ratlam.
3. The Sarafa market in Ratlam is famous for the gold trade. People from across India visit this market to buy pure 22-Karat gold. The rush to buy gold increases significantly during the festive and wedding seasons.