Gold Rate Today in Tiruvannamalai

Tiruvannamalai is a historic city located in the southern state of Tamil Nadu, India. It has gained popularity among investors for its gold market. With a rich cultural heritage and a strong tradition of gold trading, Tiruvannamalai has become a hub for those looking to invest in gold. The city offers a variety of options for gold investment, including gold coins, bullion, and jewelry. With a reliable and trustworthy gold market, Tiruvannamalai provides investors with the opportunity to secure their wealth through a timeless and valuable asset.

How to invest in Gold in Tiruvannamalai?

1. Gold coins: Gold coins are generally the most preferred option for smaller ticket investments. Although they are priced a little higher than the gold bars because of higher making charges, they are relatively the easiest to buy, sell and store. They can be purchased from banks and jewellery stores as well.  
2. Bullion: Investment in bullion or gold bars is generally preferred when people wish to make bulk investments.
3. Gold contracts: Gold contracts or Exchange Traded Funds (ETFs) can be purchased from any of the commodity exchanges in India. These contracts range from 8 grams to kilograms of gold and can be bought at various purity levels. These are Exchange-traded contracts in which the buyer agrees to take delivery of gold, at a predetermined price, on a future date, for a specific quantity. This also helps companies to hedge against the gold price risk. 
4. Sovereign Gold Bonds (SGBs): SGBs are Government bonds/securities issued by the Reserve Bank of India on behalf of the Government. They are denominated in grams of gold and act as a substitute for holding physical gold. The issue price of the bond has to be paid in cash by the investor. Further, they can redeem the bonds on maturity in cash.

What is the difference between 22K and 24K Gold?

24K is the highest form of purity of gold and is hallmarked at 24KS995 while 22K is a slightly lower form of purity and is hallmarked at 22K916. The difference is while 24K is 99.5% pure as given in the hallmark the 22K form will be 91.6% pure. This will affect the price of the gold as the rate that an investor will get on resale will be based on the purity of the gold.

Testing the purity of Gold in Tiruvannamalai 

1. BIS Mark: The Bureau of Indian Standards (BIS) hallmarks all gold jewellery. Hallmarking is done to determine and officially record the proportion of precious metal in the metal articles. 
2. Purity Indicators: Karat and Fineness number: The purity of gold is indicated in two ways- Karat and Fineness number.
3. Karat(K): 24K is the purest form, containing 100% proportion of gold. However, it is too soft and delicate, hence jewellery cannot be made out of it. Hence, other metals like zinc and silver are added to them in order to make jewellery and ornaments.
4. Fineness number: Purity in parts per thousand is indicated by the fineness number.
5. Mark/Number of the Assaying and Hallmarking centre: Certain laboratories are licenced by BIS to check the purity of precious metals. Such laboratories, on assessing gold jewellery, are required to put their logo on the jewellery. You should check on official websites whether the hallmarking centre that has put its mark on your jewellery has actually been certified by the BIS.
6. Magnet Test: Gold is a non-magnetic metal. Hence, if it gets attracted to the magnet, we can safely infer it to be impure.

Does GST affect the prices of gold in Tiruvannamalai?

A purchase of gold is liable to tax under the GST Regime. If you would like to purchase gold in Tiruvannamalai you will notice that the price you pay does not only include the rate of gold.  

3% of GST is to be paid on the gold cost that will be used to make the ornament.

As an investor if I look to buy jewellery for which the gold is at a price INR 100, will the item cost be INR 103?

When you ask a jeweller to convert the gold into an ornament, the jeweller will charge you an amount known as a making charge, this will generally be a percentage of the price of the gold that you have purchased. This will be charged to GST as well at a rate of 3%.

Factors affecting gold prices in Tiruvannamalai

Before investing in gold, you should make sure you understand the reasons for fluctuations in the commodity prices in the city. Below are the major reasons:

• 
  US Dollar Exchange Rate: US Dollar (USD) pricing has a significant impact on gold prices from a medium and long-term perspective. There is usually an inverse relationship between USD and gold prices prevailing in Tiruvannamalai. This is because gold is an internationally traded commodity and is purchased in U.S. currency in most countries, including India. This means, if the USD is weak, India can buy gold at a lower rate.
• Inflation:  Intelligent investment decisions are important in order to hedge against inflation. Paper currency loses its value as a result of rising inflation, however, investment in gold can prevent a decline in your purchasing power.
• Demand and Supply: Like any other commodity, demand and supply have a crucial role in determining gold prices. There is a tradition of gifting gold at weddings and important occasions as well as investing in the same on festivals, there is a surge in its demand during wedding seasons and the like, thereby leading to an increase in prices in those periods.
• Political or economic factors: Any major political event or change in economic policy that has a global impact may lead to an increase or decrease in gold prices in Tiruvannamalai.