Gold Rate: Everything You Need to Know

Gold is considered to be one of the most precious and multifaceted metals in India. You may wonder why it’s multifaceted? There are few metals that can double up as both beautiful ornaments and solid investment options, one of them is gold. Various factors determine the gold rates in India, the main factor being the strength of the US dollar. The rate of gold also varies significantly from city to city, depending on the demand, supply and local market conditions. For example, today, the gold rate in Vijayawada can vary greatly from the gold rate in Delhi or Bangalore. But it is important to understand the market if you plan to sell your gold to get the best rates.

Here is all you need to know about gold rates:

Factors Determining the Gold Rate

A number of factors determine the gold rate on a given day, such as the import costs, rate of the Indian rupee against the US dollar, economic stability, interest rates on bank fixed deposits, demand-supply and international prices. To continue with our earlier example of Vijayawada, many international determinants and the US dollar are the reason for the gold price today in Vijayawada.

Why do Gold Rates Vary from City to City?

It’s understandable why a country has a particular gold rate, but have you wondered why each city has a different gold rate? The local conditions become the cause of the prevailing gold rate. Local taxes, gold associations, transportation costs and quantity of gold purchased are some of the reasons why the gold rate varies from city to city. If the gold rate in Vijayawada is high today, it’s probably because the demand suddenly increased or there was a spike in transportation costs. Similarly, if the gold price today in Vijayawada is low, that could be due to lower demand for gold.

Read Also: How to Check Gold Rate in Vijayawada?

How is the value of the gold determined when selling gold?

In a financial crisis, the smart thing to do is to sell gold assets. It is a reliable source for raising funds. However, it is crucial to keep certain considerations in mind before you sell your goal for a safer experience.

• Know the Worth

Before selling your gold, it is important to determine its value to get the best price. The best way is to visit the seller and understand the calculation. It would be wise to visit a trusted buyer such as Muthoot Gold Point. Muthoot Gold Point has special scientific machines that determine the value of your gold in seconds. The value of your gold is based on its purity, its weight and the prevailing market rate of gold.

• Purity Check

You can get the best price for your gold if it is hallmarked. If a piece of jewellery bears a 916 hallmark, it denotes that the gold is of 22k with 91.6. Jewellers would definitely prefer a 916 hallmarked gold over a non-hallmarked piece of gold, as there is no evidence to show its purity. If your gold is not hallmarked, do not worry. Bring it to Muthoot Gold Point to understand its purity. The gold is cleaned and weighed by highly scientific machines to determine its purity. After it is tested, you will be provided with the correct details of your gold along with its value as per the current gold rates.

• Best Place to Sell

Selling gold is easy. You can easily visit your nearest pawn shop or local jewellery store to sell your gold. However, it is important to know that such buyers often offer only 50-60% of the value of the gold while the rest is deducted in processing, melting, making charges, etc. Muthoot Gold Point on the other hand, offers the best value of your gold. Muthoot Pappachan group, with a legacy of 134+ years, is a trustworthy name in the financial domain. Muthoot Gold Point offers a transparent process where your gold is weighed and valued right before you through scientific machines.

It is important to always keep a track of the gold rate of your city and visit Muthoot Gold Point to get the best value for your gold.