Gold Rate In Daman and diu

Since the discovery of gold, the yellow metal has been able to make a place in each and every house in India. People consider the investment in gold as the smartest way to face the future. The gold business will always find a way to boom irrespective of the market conditions. The price of these yellow metals will be at its peak if there are any auspicious festivals, ceremonies, or weddings in Daman and Diu. Since the past few decades, gold has been considered a symbol of wealth and status. People have started to buy gold whenever they are able to manage some money believing that the gold investment is the best choice when it comes to saving for the future. In Daman and Diu, gold is used not only to make jewellery, but also to make golden idols, and other art.

Measurement of gold

The unit measure of gold is called Karat. The weight of gold is measured in troy ounces. One troy ounce is equivalent to 31.1034768 grams. 24-karat gold is considered as the highest and purest form of gold.

What is Karat?

Karat is the unit measure of gold and one can identify the purity of the yellow metal by referring to the karat. Even though resistant to corrosion and rust, pure gold is quite soft and supple. That is the reason why jewellers often add other metals such as zinc, copper and silver while making 24 karat gold ornaments. One karat is 1/24th part of the whole 24-karat. In the market when you see a gold ornament, bar, or coin is 22 karat, it means the ornament has only 22 parts of pure gold and the balance 4 parts is of copper or silver.

Since 24-karat gold is made of 99.9% pure gold, it is quite expensive when compared to 22-karat gold which has only 91.6 % pure 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

This fineness scale is approved by the Indian Government and this measure is otherwise known as Hallmark.

Factors That Determine Gold Prices in Daman and Diu

Below are some of the key factors that affect the price of gold in Daman and Diu

Inflation

One can compare gold to currency as it can be used to hedge inflation. When the rate of currency falls, people start investing in gold.

The Effect of Other Commodities

The rate of gold is often related to other goods such as crude oil and copper. In the industry when an imbalance in trade arises between the commodities, the effect of the change will adversely affect the gold industry. As a result of the economic conditions, the rate of gold increases.

Demand and Supply

The rule of supply and demand affect the gold industry as well. India and China are said to be the largest consumers of gold. The rate of gold goes up if there isn’t enough gold supply to meet the consumer’s demand. For example, if there is any auspicious festivals or marriage season, then the price of gold is bound to increase. When the demand goes high, the vendors must be ready to supply the metal. On the other hand, when the demand for gold reduces, the rate will start to decline.

Value of the US Dollars

When it comes to determining the rate of gold, the value of the US Dollar has got a vital part in it. The rate of gold increases when there is a fall in the US Dollar rate as people will prefer investing in gold than currency. Once the currency regains its strength, it will pull down the gold rate as well.

Fixed Deposit Interest Rates

Fixed deposits are said to be the master when it comes to investment. Banks offer attractive interest rates as well which makes fixed deposits the strongest and smartest way of investment. The attractive interest rate can bring the gold rate down as people will prefer fixed deposits over gold investments.

Import Costs

Daman and Diu does not have any gold mines and as a result, the jewellers need to import gold from other countries. Due to import, they will incur additional expenses and the jewellers are forced to include the expense in the gold price.

Buy gold in Daman and Diu

Buying gold is something which you need to do very carefully. When you buy gold, you are investing all your savings so that you can be worry-free in the future. If not bought carefully, there are chances that you might get fooled by fake gold ornaments, coins, and even gold bars. So keep the following points in mind when you plan to buy gold.

Keep an eye on the Gold rates: Keeping a regular check on the gold market is a good practice if you intend to buy gold. This will help you understand the recent market trends and it will help you to decide whether it is the right time to buy the metal.

Different Types of Gold: Since there are different types of gold available in the market, it will be a better idea to decide beforehand what you want to buy. It could be gold jewellery, gold bars, gold coins, and even gold bars. Each one will have a different rate according to karats.

Ensure purity: Gold is measured in 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: The easiest way to check for purity is to look for Hallmark.