Gold rate in Warangal

One of the most visited cities in Telangana, Warangal is famous for its spectacular historical monuments, fortresses and temples. Being home to several prestigious landmarks, the city of Warangal is also one of India’s first 100 smart cities.

There is a high demand for gold amongst the people of Warangal. But, like every other city in India, the gold rates in Warangal have constantly been fluctuating due to local economic factors and global trends.

Are you planning to buy gold in Warangal? It’s best to stay informed of price changes so you can budget for future investments accordingly. But before we delve into the details, let’s take a look at how the price of gold in Warangal has fluctuated over the past week.

Factors Affecting the Gold Prices in Warangal

1. Inflation - During inflation, the value of the currency drops. So, those having gold tend to hold on to it, driving the prices up.
2. Fluctuating Demand and Supply - The pandemic has also been one of the factors responsible for the fluctuating demand and supply of gold. Only some have fully recovered from the aftermath of the pandemic, which included a lack of adequate resources to invest in gold.
3. Interest Rates - High-interest rates encourage gold owners to sell most of their stock, while low-interest rates compel potential investors to buy more gold, thus driving up the prices.
4. Import Duty - Indian cities, including Warangal, have minimal gold reserves. Most of the gold is imported from other countries, which attracts import duties and, consequently, inflates the price of gold.
5. Changes in the Indian Rupee Against USD - Any change in the Indian rupee as compared to the US dollar is instantly reflected in the gold prices in India. When the value of the rupee falls, the price of gold surges simultaneously.

Gold vs Other Investment Options in Warangal

Gold ornaments in Warangal are always in high demand compared to all other investment options. You can either buy the traditional form of gold, that is, physical gold, or invest in other forms of gold investments, such as:

1. Gold Bonds or Sovereign Gold Bonds - The Government of India issues these bonds. They are government securities that are denominated into grams of gold. They serve as alternatives to holding actual gold. The issue price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity.
2. Gold Exchange-Traded Funds (ETFs) - Gold ETFs are securities that track actual gold, which may be in the form of paper or in a dematerialized form. One gramme of gold is equal to one unit of the Gold ETF, which is backed by highly pure physical gold. Gold ETFs combine the simplicity of gold investing with the flexibility of stock investing. The National Stock Exchange of India (NSE) and Bombay Stock Exchange Ltd. are the two exchanges where gold ETFs are listed and traded.
3. Gold Mutual Funds - Mutual funds that invest directly or indirectly in gold reserves are known as gold funds. Investments are typically made in the stocks of mining companies, physical gold, and syndicates that produce and distribute gold.

How Is the Purity of Gold Determined in Warangal?

The Indian Bullion and Jewellers Association (IBJA) evaluates the purity of gold in Warangal, and all gold dealers are mandatorily required to incorporate the hallmark symbol of purity. While there are multiple purity levels, the most common ones are - 18-karat, 22-karat and 24-karat.

The price of gold in Warangal is directly dependent on the purity levels. The purest form of gold (24-karat) is the most expensive, while gold having 18-karat purity is relatively cheaper. This principle applies to gold rates in all cities.

Comparison Between 24K and 22K Gold

Whether you buy 22K or 24K gold, you must keep in mind the purpose of the purchase.

22K gold contains 22 parts of gold mixed with 2 parts of other metals/alloys such as silver, nickel and zinc. It is also called 916 gold, with a purity of 91.6%. 22K gold is more durable than 24K gold and is, thus, a better option for making gold jewellery.

24K gold contains 99.99% of pure gold and is the purest form of gold available in the market, but it is too soft to be moulded into jewellery. So, one can invest in 24K gold, but not in the form of jewellery. It can be in the form of gold coins or bars.

Goods and Services Tax (GST) on Gold in Warangal

Gold is a precious metal subject to certain duties and charges under the GST regime. Buyers have to pay a 3% GST on the value of gold and an additional 5% on the making fees under the GST regime.