Gold rate in Shimoga

Shimoga, sometimes referred to as Shivamogga, is a city and the administrative centre of the Shimoga district of Karnataka. It is located on the banks of the Tunga River. The city is known as the "Gateway of Malnad" since it serves as the entrance to the hilly regions of the Western Ghats.

Shimoga draws visitors from across the state because it is home to a lot of industries. The booming industries and trade have provided locals with the chance to invest in gold. Let us have a look at the current prices of gold in the city.

Factors Affecting the Spot Price of Gold

The spot price of gold is the current market price for an ounce of gold. The price constantly changes based on various factors. Here are some of the most influential factors that affect the price of gold:

Import Duty

Less than 1% of the world's gold is produced in India. Thus, India is the second-largest importer of this precious metal, for the country to meet its huge demand. Import duties are levied on the price of gold. The current rate of import duty on gold is 15%.

Interest Rates

When interest rates on fixed deposits (FDs) are low, people tend to invest their money in gold, because it is known to provide stable returns. However, when interest rates rise, investors prefer parking their money in FDs to yield higher returns.

Supply and Demand

As with any commodity, the laws of supply and demand play a significant role in setting gold prices. If the demand is high, the prices of gold tend to soar. This is especially witnessed during the wedding seasons of October to February and festivals like Dussehra and Diwali.

Inflation

The value of the currency declines when inflation rates increase. Most investing options fall short of producing returns that outpace inflation. Thus, the majority of individuals begin investing in gold. Due to its immunity to changes in currency value, gold serves as the ideal hedge even when high rates of inflation persist for an extended period of time.

Investment Options for Gold in Shimoga

Jewellery Stores

Buying gold from jewellers continues to be the most common method of purchasing gold in Shimoga. Most people buy gold in the form of jewellery. The other options available for you include gold coins and bars. Jewellers offer a variety of goods at various price points to appeal to a wide consumer base. Typically, buying gold from reputable jewellers or institutions might be more expensive because each purchase comes with a purity certificate.

Central Banks

If you wish to invest in gold through a bank, many options are available. The State Bank of India offers a gold deposit scheme under which you can deposit gold coins or bars with the bank and earn interest on your investment. Other banks, such as HDFC Bank and ICICI Bank, also offer similar schemes.

Market Trade

You can buy gold in dematerialised or paper form. The Mumbai Stock Exchange and National Stock Exchange offer a platform via which people can trade in gold. These possibilities include gold exchange-traded funds (ETFs), futures contracts and gold mutual funds.

Digital Gold

Payment platforms like PayTM and PhonePe allow you to invest in digital gold via your smartphones. You can start your investment with as less as ₹1. 

Identifying BIS Hallmarked Jewellery

The precise assessment and official documentation of the proportionate precious metal content is known as hallmarking. The purity or fineness of precious metal items is guaranteed by hallmarks, which are statutory marks used in many nations. The public's protection from adulteration and manufacturers' obligation to uphold legal standards of fineness are the major goals of the hallmarking scheme. Two precious metals, namely gold and silver, have currently been included in the scope of hallmarking in India.

The Bureau of Indian Standards (BIS) is responsible for authenticating and hallmarking gold jewellery in India. Before purchasing a gold item, you should look for the following marks -

• BIS Mark or Logo
• Year of Production
• Identification Number or Mark of the Jeweller
• Purity or Fineness Number 

Interesting Facts About Gold

• Gold melts at a temperature of 1064 degrees Celcius.
• Around 1,87,200 tonnes of gold has been mined since the beginning of civilisation.
• Over 90% of the world's gold was mined after the California gold rush.