Gold Rate Today in Srinagar

Srinagar, also known as the "Venice of the East" is the summer capital of the Jammu and Kashmir union territory. Known for its picturesque beauty and vibrant culture, this is an important destination city for gold business. Srinagar, known for its waterfronts, houseboats, gardens, and natural environment, is a scenic city that is located on the banks of the Jhelum River in the Kashmir Valley.

Just like any other place in Jammu & Kashmir, gold has become integral to Srinagar’s culture and history. The demand for gold in this city increases significantly during wedding seasons and festivals. Most people buy gold ornaments during these times. However, people have also started investing in alternatives to physical gold, such as SGBs (Sovereign Gold Bonds), digital gold, gold ETFs, etc.

People in this city invest in gold because it preserves wealth, especially during economic/political uncertainty. If you want to buy gold in Srinagar, you should track its price trend. This will help you get the best deal. Keep reading this article to learn the price of gold per gram (as per purity level categories) and other aspects related to the gold rate in Srinagar.

Impact of GST on Gold Rate in Srinagar

The Goods and Service Tax (GST) in Jammu & Kashmir was implemented on July 7, 2017, much after being rolled out in the rest of India. GST implementation has increased the gold rate in Srinagar. Let’s check it out.

In the pre-GST era, three kinds of rates were implemented:

• Gold import duty = 10%
• VAT (Value Added Tax) = 1.2%
• Customs Duty = 1%

In the GST era, the tax rates are:

• Gold import duty = 12.5%
• VAT (Value Added Tax) = 0%
• GST on gold = 3%

When compared with the pre-GST era, the implementation of GST has made gold expensive by more than 0.75%. 

Understanding The Demand and Price For Gold In Srinagar

In Srinagar, the primary demand for gold originates in the form of gold ornaments and jewellery. You’ll find some of the largest gold traders in India here. They provide them with ample options to purchase gold. The demand for gold in Srinagar comes from both the urban and rural populace. This demand rises during the wedding season, especially from late April to May.

The price of gold in Srinagar is comparatively higher than in metros and other cities with dense populations. In larger cities with dense populations, gold trade takes place in large quantities. This is the reason why gold rates in those cities tend to be lower than in relatively low-density population cities or rural areas.

Besides, many other factors affect the demand and price of gold in Srinagar, Jammu & Kashmir. Some of those local, domestic, and international factors are:

• Gold transportation cost in Srinagar
• Cess or other special taxes in the city
• The cost associated with gold production
• Cost of importing yellow metal in India
• GST (Goods and Service Tax)
• Exchange rate of INR (₹) with US Dollar (US$)
• Any kind of domestic or international instability (economic or political)
• Gold rate fluctuation in the international market
• The volume of gold, its overall demand in Srinagar, and many more.