Gold Rate In Jaipur

Gold is perhaps one of the best-known and most widely held precious metals in the world. The precious commodity has played a key role throughout recorded history as forms of money, as forms of saving, and as a means of wealth protection.

Today, physical gold in the form of bars, coins, and jewelry is highly regarded by investors as stores of values, an asset in times of financial crisis, and as a way of diversifying investment portfolios.

Gold is valuable because it retains its purchasing power over time and is a generally appreciating asset (depending on world economy). It is also bought as a hedge against inflation. In times of financial crises, investors flock to the safety of gold because gold is free of risk.

Even with rising prices, gold is viewed as a safe mode for investment. Gold is more accessible to the average investor because it can be easily purchased in its physical form by way of jewelry, coins, and gold bars. However, with the advent of more advanced financial instruments, you can invest in gold exchange-traded funds (ETF) that imitate the movements of physical gold, giving investors direct exposure.

Measurement of gold

The purity of gold is measured in karats, whereas the weight of gold is measured in troy ounces (1 troy ounce = 31.1034768 grams).

What is a karat?

A karat is used to denote the purity of gold. 24-karat gold is pure gold, but it is extremely malleable. Hence, it is mixed with a metal like copper or silver to make jewelry. One karat is equal to 1/24th of the whole. So, if a piece of gold is marked 18-karat, it means that it is made of 18 parts gold and 6 parts copper.

24 karat is 99.9% of gold while 22 karat is 91.6% is pure. That is why the price of 24 karat gold is higher than 22 karat gold.

Following is the fineness scale which is used while defining 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

Fun fact: Gold is the only metal that is yellow in its color and sheen. Other metals may develop a yellowish color, but this requires extensive oxidization process or reaction with other chemicals.

Factors That Determine Gold Prices in Jaipur

While the demand for gold has a role to play in its fluctuating price, there are several other factors that determine the price of gold.  Following is an overview of some of the factors that affect the price of gold in Jaipur:

Political and economic events 

Political and economic events shape market conditions, which in turn influence the price of gold. Gold prices reflect a nation’s economic health. Gold is a crisis commodity as prices tend to rise during times of unrest. World events often have a strong impact on the price of gold because gold is viewed as a hedge against economic or geopolitical tumult.

Central bank crisis

During times of irregular economic policies, people flock to gold since it is a safe investment instrument.  When the currency system experiences uncertainty, investors prefer the physical and tangible security of holding gold. In turn, an increased demand drives up the value of gold.

Value of the US dollar

Since gold is priced in U.S. dollars, the value of the dollar largely impacts the price of gold. A falling dollar pushes up gold prices and vice versa. Conversely, a strengthening U.S. dollar (that often comes about because of a growing U.S. economy) pushes down gold prices. Note that gold and the U.S. dollar have an inverse relationship. When the US dollar is strong, investors naturally invest in the currency rather than in the precious metal, causing the price to fall.

Central banks

The central banks of various countries control the money supply, oversee monetary policy and currency, set interest rates and attempt to manage inflation. Central Banks also buy gold as a hedge against the US dollar (gold and the US dollar have an inverse relationship). Holding physical gold also strengthens a nation’s currency. This affects gold prices.

Supply and demand

The basic supply-and-demand principle is a major influencer of gold prices. When gold demand is high and the supply of the precious commodity is low, gold prices will naturally increase. Conversely, when gold is in high supply coupled with weak demand, prices decrease. Since gold is not a renewable metal, supplies will always be limited. According to experts, gold production levels will only continue to decline, leading to rising prices. However, gold demand will be high from investors, central banks, and the medical and technology sectors, further contributing to climbing prices.

Inflation

When inflation rises, the value of the currency goes down and therefore people invest in gold in order to hedge themselves from falling currency value. Hence, during times of inflation, especially over a longer period, gold becomes a valuable tool to hedge against economic uncertainties.

Apart from the above-mentioned factors, when demand for gold increases in the international market, the price of gold naturally increases in Jaipur too. It is important to note that gold prices can also vary across different states in India. This is due to the transportation cost associated with gold. Again, demand and supply influence the price of domestic gold.

Buy gold in Jaipur

Gold is one of the most sought-after commodities in India, especially during festive seasons, when jewelers announce discounts and sales. Gold holds an important part in Indian culture, which is why it is much sought after.

Commonly, gold is bought as a form of investment due to its ever-increasing price. There are a few things to keep in mind before buying gold jewelry. Always go for BIS Hallmarked gold jewelry. Insist on a retail invoice in which the making charges, the actual price of gold on the given day, karat and weight of gold Jewelry and BIS hallmarking license number are clearly mentioned. If you have any doubt regarding the purity of the gold purchased, you can search for BIS approved assaying and hallmarking centers and ask them to check the purity of your gold jewelry. It doesn’t cost much, but you will be assured about the purity of your gold. Apart from that, following are some of the factors to keep in mind if you're looking to buy gold in Jaipur.

The purity of gold: The first thing to keep in mind is the purity—measured in karats—of gold. 24 karat is 99.9% of pure gold while 22 karat is 91.6% pure. Following is the fineness scale which is used while defining 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

When you buy gold jewelry, always check for its purity. The easiest way to check for the purity of gold is to look for hallmarking. A hallmarked piece of jewelry can be trusted for its authenticity and purity. The Bureau of Indian Standards (BIS) is the accreditation agency that certifies and hallmarks gold jewelry by operating a hallmarking scheme.

Understand the Hallmarking of Gold: When you check for purity, it is important to understand how hallmarking works. Assaying and Hallmarking centers certified by the Bureau of Indian Standards (BIS) assess the gold quality sold by the jewelers. Only jewelers granted a licensee can get their gold jewelry assayed and hallmarked for purity by BIS-recognized Assaying and Hallmarking Centers in India.

Check the price of Gold: India is one of the largest importers and consumers of gold in the world. All gold supplies are imported from overseas. This means the price of gold in Jaipur is greatly influenced by the international market and currency fluctuations, and hence fluctuates on a daily basis. Before buying gold in Jaipur, always check the per gram price on a reputed website like CreditMantri.

Disclaimer: The information on the prices of the gold rate is merely indicative and is susceptible to change with market value and is provided on an as-is basis. The information contained here is not intended as investment advice. CreditMantri is in no way responsible for any loss arising from the use of data contained on this website.

Frequently Asked Questions: Gold Rates in Jaipur Today