Gold Rate In Pune

The desire to own gold dates back as far as the beginning of mankind itself. Gold is placed in the highest regard in every culture. All of the great empires of the ancient world used gold, mainly in their rituals.

Over centuries of budding growth, gold has taken on many additional roles. Not only is it still prized for jewelry, but it also has various other applications. Gold has excellent thermal and electrical conductivity properties; hence it is used for various industrial purposes. Additionally, because of its antibacterial properties, it is used in the medical field. It is also bought as an investment because of its climbing price tag. Even with rising prices, gold is viewed as a safe mode for investment.

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: The world largest gold bar weighs 250 kilograms. Also, did you know that our bodies contain about 0.2 milligrams of gold, most of it in our blood? Now you can tell somebody that they have a heart of gold, literally (however minuscule it may be!)

Factors That Determine Gold Prices in Pune

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 Pune:

Global crisis and unrest

Because gold prices tend to rise during times of unrest and war, it often gets called a crisis commodity. World events often have a strong impact on the price of gold because gold is viewed as a hedge against economic or geopolitical tumult.

Industrial and Commercial demand

India and China are some of the largest consumers for gold jewelry. When the demand for jewelry increases and the supply is restricted, the price of gold automatically increases. As soon as the demand for gold decreases, the price of gold also depreciates.

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 invest in the currency rather than in the precious metal.

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, largely because it acts 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

Simple supply-and-demand can influence physical gold prices. As with any product, increased demand along with a low supply causes the price to go up. Conversely, an overabundance of a product or service coupled with a feeble demand can cause the price to spiral down. The same principle applies to gold. Traditionally, there is a surge in gold demand during festive seasons, leading to a rise in gold 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 Pune 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 Pune

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. Following are some of the factors to keep in mind if you're looking to buy gold in Pune.

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. It tells you the amount of gold in proportion with the metal alloyed. 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 of gold in the world. All gold supplies are imported from overseas. This means the price of gold in Pune is greatly influenced by the international market and currency fluctuations. Before buying gold, always check the per gram price on a reputed website like CreditMantri. It is important to note that the price of gold fluctuates on a daily basis.

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 Pune Today