Gold Rate In Andaman and nicobar

One can say that Indians love gold. Why? Because if you take an estimate, you can see that most of the Indian households hold their major assets in the form of gold. Gold has been a primary asset for many, because of its value and its uses in making jewellery, art, etc. In India, you can also find clothes that are made out of golden threads. For the past few decades, gold has become a status symbol. The reason behind it is the resale of the metal and the fact that the yellow metal can resist rust and corrosion.

Gold is the only metal which never loses its demand and is a perfect way for long-term investment. Believe it or not, around 15% of the Indian economy is ruled by gold business and around 30% of the global consumption is contributed by the jewellery and gems sectors in India. Below is today’s gold rate in Andaman and Nicobar Islands.

Measurement of gold

The unit measure for gold is known as karat or Karat. The basic unit of weight of gold is measured in troy ounces. One troy ounce is equivalent to 31.1034768 grams.

What is Karat?

A Karat is a measure to calculate the purity of gold. Pure gold is 24 karat however it is very soft and supple. Because of this quality, jewellers mix this yellow element with other metals such as copper and silver.  One karat equals 1/24th of the whole 24-karat. So, next time when you buy a 22-karat gold, it means that there are 22 parts of pure gold and the balance 2 parts could be copper or silver.

24-karat gold is made of 99.9% pure gold while 22 karat is 91.6% pure gold. This is the reason why the price of 24-karat gold is always on the higher side than 22-karat gold.

Given below is the fineness scale which is used while measuring the purity of gold:

• 24 K = 99.9% Pure
• 22 K = 91.6% Pure
• 18 K = 75% Pure
• 14 K = 58.5% Pure
• 10 K = 41.7% Pure

These measures are otherwise known as Hallmark. Each karat gold will have this hallmark which helps the jeweller or buyer from falling prey to fake gold ornaments and coins.

Factors That Determine Gold Prices in Andaman and Nicobar Island

Below are some of the key factors that affect the price of gold in the Andaman and Nicobar islands.

The Performance of the US Dollar

The more value a US Dollar gains, the less will be the gold prices in Andaman and Nicobar Islands. The investors in this union territory prefer to invest in the currency rather than in gold. If at all the US Dollar marks a fall, then the banks will be investing in gold rather than the US Dollar.

Economic Stability

During the economic crisis, the price of gold goes up as it is one of the best ways to invest in one’s future. The reason is that, when investors get the hint that a recession is going to happen or if there is going to be a change in the economic conditions of the country, then their next step will be investing their money in gold as a safe investment which gives rise to the increased demand for the metal.

Varying Price

The rate of gold tends to increase during marriage seasons, festivals, and other auspicious occasions which leads to an increase in the price of gold.

Import Costs

The gold and jewellery industry in Andaman and Nicobar performs their business through importing gold from many other states or countries. This means the industry pays for an additional expense called the import rates. When the import rates get higher, the industry is forced to increase the gold price.

Fixed Deposit Interest Rates

In India, most people prefer to have a fixed deposit as an investment over buying gold. Investing in gold is always a second idea because, when the fixed interest rate falls in the bank, the next best way to get a good return is to invest in gold. This will lead to an increased demand for the metal and as a result, the gold price will increase as well.

Demand and Supply

The production of gold in Andaman and Nicobar Islands is comparatively less when compared to other regions. So when the demand goes up, there may not be enough gold supply. As a result, the industry will have to import gold from other places and it increases the price.

State Taxes

The tax levied on gold can have an impact on its price as different states in the union territory have different taxes.

Transportation Charge

Since Andaman and Nicobar imports gold, the transport charges to bring gold from other port cities can also increase the rate of gold.

International Prices

When the rate of gold goes up in the international market, it will have an effect in Andaman and Nicobar market too. When banks buy gold as a precaution against inflation, the gold rate will go high.

Buy gold in Andaman and Nicobar Island

Since gold is often bought as an investment, you will have to carefully check whether you are buying real gold.  Below are some points which you can check before you decide to buy gold.

Keep an eye on the Gold rates: The first thing to check is the gold rate every day. When you observe the market carefully you will understand the market trends. These steps will help you to buy gold at the right time:

• Type of Gold:  Before you make an investment, take time and decide what type of gold you are looking for. It could be jewellery, gold coins, gold bond, etc.
• Ensure purity: Gold is measured in Karat or Karats.  24 karat is 99.9% pure gold while 22 karat is 91.6% pure. Below is the fineness scale which is used to determine the purity of gold:

            24 K = 99.9% Pure

            22 K = 91.6% Pure

            18 K = 75% Pure

            14 K = 58.5% Pure

            10 K = 41.7% Pure

• Bureau of Indian Standards (BIS) Hallmark: Always check for the Hallmark when you buy gold. This is the easiest way to know the purity of gold.