Gold rate in Vizianagaram

The pleasant tiny seaside town of Vizianagaram lies along the Bay of Bengal in southeastern India. It is about 40 kilometres to the north of Vishakhapatnam — the prominent port city in Andhra Pradesh. Vizianagaram is a part of the eastern ghats. The city takes its name from the famed Vijayanagar empire that ruled the better part of the Deccan region for more than three centuries.

Vizianagaram serves as a rail hub and a shipping hub for sunn hemp (a jute substitute) and jute products. The modern Vizianagaram district was established in 1979, including parts of the neighbouring districts of Srikakulam and Vishakhapatnam.

Some Interesting Facts on Gold Vizianagaram

• In every city, including Vizianagaram, the city's Jewelers Association determines the gold rate. The jewellers determine whether or not to provide a discount according to the demand and capacity they have, as well as the daily gold rate set by the Indian Bullion and Jewellers Association (IBJA).
• Only 30% of gold sales in India are hallmarked. The difference between the average carat and the purity of gold, according to experts, is between 10% and 15%.
• One of the commodities with the highest liquidity is gold, which is kept in circulation in the economy by the Reserve Bank of India (RBI).
• South Africa provides more than two-thirds of the gold that we import.
• Gold is highly ductile (can be stretched into thin wires) and malleable (can be beaten into thin sheets without breaking. You can beat an ounce of gold into a sheet measuring around 100 square feet.
• It is a superb conductor of electricity.

How is the Purity of Gold Measured in Vizianagaram?

The purity of gold can be determined using a variety of techniques. The acid test is one of the cheapest and most popular ways to test the purity of gold.

Acid testing kits are readily available. This method relies on the ability of gold to resist oxidation, corrosion or acid.

Most jewellers today use electronic gold testing equipment that measures the metal's electrical conductivity to ascertain its purity. These electronic testing devices have a good degree of accuracy. 

Other tools are used to check the purity of gold, including XRF (X-ray fluorescence spectrometers) and others.

However, it is safest to purchase BIS-hallmarked gold jewellery, which is a reliable assurance of purity. Assay offices are present in most cities where people can get their gold jewellery analysed.

Gold purity is expressed in karats. The purest form is 24 karats, followed by various levels of purity depending on the proportion of other metals added. In Vizianagaram, as in the other parts of the country, the most popular variants are 24, 22, 18 and 14 karats. Below are a few of the common levels of gold purity in India and globally.

• 24 karats - 99.9% 
• 23 karats - 95.8% 
• 22 karats - 91.6% 
• 21 karats - 87.5% 
• 18 karats - 75.0%
• 17 karats - 70.8% 
• 14 karats - 58.3%
• 10 karats - 41.7%
• 9 karats - 37.5%
• 8 karats - 33.3%

Impact of Taxes on Gold Rate in Vizianagaram

The introduction of GST has also had an impact on Vizianagaram's gold rate in addition to global trends. This implies that instead of the 1.5% VAT and 1% excise charge that was previously imposed, the taxation on gold jewellery is now 3%. After the introduction of GST, taxation was streamlined; final jewellery bills now include 3% GST, 10% customs duty, an Agriculture Infrastructure and Development Cess (AIDC) of 2.5%, and a Social Welfare Surcharge -of 10% of Customs Duty.

Impact of RBI Policies on Vizianagaram Gold Rate

The RBI implements the different monetary policies the Government of India set forth and oversees all of the nation's banking and financial services. The RBI's rules and regulations impact the price of gold in Vizianagaram and every other state, for that matter. The RBI also regulates the behaviour of businesses that lend money against gold to customers. The RBI has implemented several rules to protect the interests of customers.

Alternatives to Physical Gold in Vizianagaram

While the lure of the yellow metal is hard to ignore, Indians today are increasingly warming up to the idea of alternatives to physical gold for investment. Some of the commonly sought-after ones are:

1. Digital Gold – You can claim ownership of specific quantities of gold without actually possessing it physically. The seller will keep the physical gold of equivalent value in a secure vault. You can make multiple transactions and cash the value of digital gold in your bank account as required. Numerous online platforms, like PhonePe, Paytm, etc., offer digital gold in Vizianagaram.
2. Gold Exchange Traded Funds (Gold ETF) – In this method, you own the gold in an electronic format. Here, the capital is invested in high-purity gold bullion by fund managers. Gold ETF returns rely on domestic gold prices. You can redeem your capital whenever required.
3. Sovereign Gold Bonds – Sovereign Gold Bonds (SGB) are government securities. They are denominated in grams of gold. They are a good alternative to physical gold. The Reserve bank of India issues SGBs on behalf of the Government of India. You can buy them in cash at the issue price and redeem them for cash at maturity.
4. Gold Funds - These open-ended funds park their capital in Gold Exchange Traded Funds (ETF) units. You can invest in these via Systematic Investment Plans (SIPs).