Gold Rate Today in Tamil Nadu

Indian households are one of the largest consumers of gold in the world, and Tamil Nadu is a leader in gold consumption here. It is a prosperous state where you can find gold from every house to every temple in different forms. The state is known for its craftsmanship in gold jewellery. Gold is the most common metal for consumption and investment. The demand for gold products is always high in Tamil Nadu, especially during the wedding season, on auspicious occasions and during festivals.

As the demand is expected to remain high here, investors have good opportunities. Read on to learn more about gold rates in Tamil Nadu and how you can proceed with your investments.

Points to keep in mind while buying physical gold in Tamil Nadu

Always keep track of the updated daily price of gold. Price is determined per gram. Cross-check with the seller about the price per gram.

There are various purity levels of gold such as 19K, 21K, 22K, and 24K. Purity depends upon the ratio of other elements added to gold. The purest forms are 22K and 24K.

Purity levels of gold items are determined by the Bureau of Indian Standards(BIS). Always check for the BIS mark on the gold item and a certificate of authenticity issued by BIS.

It would be best if you always insisted on a detailed bill from the seller. A detailed bill includes making charges for the jewellery, import duty, GST, and any other hidden charges.

Types of gold investment in Tamil Nadu

Here are the various gold investment options available in Tamil Nadu presently:

Gold Jewellery

Gold jewellery is a crucial part of the vibrant culture of Tamil Nadu. Most of the households own some form of gold jewellery. It is used in daily life and its demand increases during wedding seasons and auspicious festivals. You can buy gold jewellery from any trustworthy seller in your area or any credible source online.

Gold coins and bars

After gold jewellery, gold bars and coins are famous in Tamil Nadu. You can buy coins and bars from jewellery showrooms, banks, and any online aggregator. Always buy coins and bars from a trustworthy source only. You should also keep in mind that some sellers, like banks, have no buy-back policy.

Gold Exchange-traded funds

Gold ETFs track the price of gold in India. They are listed on the National stock exchange (NSE) and Bombay stock exchange (BSE) and are traded just like stocks of any other company. Some of the prominent Gold ETFs are National Spot Exchange(NESL), National Commodity and Derivative Exchange (NCDEX) and Multi Commodity Exchange (MCE).

Through gold ETF you trade in gold in electronic form and not in physical form.

Gold Mutual Funds

The Securities and Exchange Board of India monitors and regulates mutual funds in gold. It is another way to diversify your investment portfolio. Unlike physical gold, you do not have to worry about storage or authenticity.

Sovereign Gold Bonds (SGB)

The Government of India issues sovereign gold bonds, through the Reserve Bank of India(RBI). When you buy SGB you pay the issue price in cash. When SGB matures in time then you can redeem them in cash.

What is KDM gold? How it is different from hallmarked gold.

KDM gold is gold crafted with cadmium (also spelt as kadmium). Cadmium is used as a solder to bind soft gold. This process is used in jewellery making. Cadmium is preferred over other metals because it has a lower melting point. The ratio of gold to cadmium is 92:8, so went you buy KDM jewellery it has 92% gold and 8% cadmium.

On the other hand, hallmark jewellery is 100% gold. It is a sign of authenticity and is checked by the BIS. BIS assures the international quality of gold products. BIS is the sole agency for hallmark certification in India, so don't be fooled by any other organization claiming to give certificates of authenticity in Tamil Nadu.

What determines the gold prices in Tamil Nadu?

The price of gold in Tamil Nadu is determined daily by the following factors:

• Import duty as announced by the Government of India.
• Indian Bullion Jewellers Association (IBJA) imports gold into India. IBJA announce gold prices in the morning and the evening. IBJA's announcement can also sway the prices of gold in Tamil Nadu.
• Several banks also import gold into India. They determine the prices and interest on loans against gold.
• Future prices in the trade exchanges bet on the rise or fall of gold prices. Sometimes it can affect gold prices.
• As determined by the governments, taxes and cess on gold prices will either increase or decrease the prices of gold products in Tamil Nadu.
• Global factors such as the performance of the U.S. dollar, economic sanctions on gold-exporting countries, and geopolitical tensions also affect gold prices.