Gold Rate Today in Sivakasi

Sivakasi is a small town located in the southern state of Tamil Nadu, India. It is renowned for its fireworks industry and is also considered as a hub for gold investment. With a rich cultural heritage and a thriving local economy, Sivakasi offers a secure and profitable environment for gold investments. The town has a long-standing tradition of gold trading, and its residents have a deep understanding of the gold market. The combination of a stable economy, favorable government policies, and a strong community of gold traders make Sivakasi an attractive destination for gold investment. Whether you are looking to purchase gold for personal use or as a long-term investment, Sivakasi is the perfect place to start.

Gold vs FDs

Besides being a precious and auspicious metal, gold has been a preferred mode of investment for most households in India. Other than gold, people also like to invest in safe investment options such as Fixed deposits (FD). For starters, the returns in FD are guaranteed and fixed. These returns aren't affected much by market volatility or other economic conditions. 

On the other hand, while the rate of gold fluctuates, it acts as an excellent hedge against inflation. Moreover, the prices may go up or down for a shorter duration; in the long run, gold prices have always gone up.

Comparison between 22k and 24k Gold

22K gold includes 22 parts mixed with two parts of other metals/alloys such as copper, silver, nickel, zinc, etc. 22K gold includes 91.67% pure gold, also called 916 gold. Due to its trace metallic composition, this gold texture is harder and more durable than its counterpart.

24K gold is called pure gold because it contains 99.99% pure gold. 100% gold is too delicate to hold its shape at room temperature; therefore, 99% gold is considered the highest and purest form of the yellow metal. Thus, the crude ore is extracted and processed until it reaches a purity of 99.99%.

Some Interesting Facts on Gold

• The boiling point of gold is 2808 degrees centigrade.
• Gold melts at 1064 degrees centigrade.
• All the gold ever mined would fit into a crate of 21 meters cubed.
• One ounce of gold can be stretched to reach 50 miles; the resulting wire would be just five microns wide.
• One ounce of pure gold can be hammered into a single sheet nine meters square.

Factors Affecting Gold Prices in Sivakasi

Import Rates

The demand for gold is relatively high in India, and there are few mines to cater to that enormous demand. Because of this, India imports a large portion of gold to cater for the domestic gold supply. Hence, import rates play a vital role in determining Sivakasi's gold prices. A higher import duty means the price of gold will increase in Sivakasi and vice versa. 

Exchange rate of US Dollar

Like various other trade businesses, the trading of gold is also primarily done in US dollars. It means the exchange value of the US dollars to the rupee also plays a vital role in determining the price of gold in Sivakasi. In India, dollar prices play an inverse role in determining gold prices. If the US dollar weakens, India could buy gold at a lower price. However, the US dollar is relatively strong concerning the Indian rupee; hence, gold prices have also been surging.

Demand and Supply

One of the significant factors in determining gold prices in Sivakasi is supply and demand. Almost all the gold that has ever been mined is still in some form. Additionally, more gold is being mined every day. So, you may think the price of gold will fall over time. That's not the case, and it's because most countries and civilisations treat gold as a store of value. 

So, gold prices rise when the demand increases and vice versa. You would have observed during the wedding and festive season that the price of gold in India always remains high. 

Central Gold Reserves

Central banks are also the major movers of gold prices. Central banks such as the Reserve Bank of India (RBI) and the US Federal Reserve have enormous gold reserves. Gold prices go up when these institutions start holding gold reserves or buying more gold. 

Moreover, other central bank activities, such as money printing and currency movements, also affect gold prices. 

Inflation

The rise in the cost of goods and services, known as inflation, can significantly affect the value of gold. Typically, there is a direct correlation between inflation and the change in gold prices in Sivakasi. This is because, as inflation increases, the value of currency decreases, causing people to seek stability by holding their wealth in the form of gold.