Gold Price in India Today (12th June 2023), Gold Rate in India

The Buyt Desk

In 2020, the rate of 24-Carat gold rose from Rs.41, 150 in January to Rs.50, 370 in December. Gold touched a high of 56,000 in August 2020. Gold is an ever-appreciating asset. In the last 11 years, the price of gold has seen a humongous jump from Rs.30, 000 to Rs.50, 000 per 10 grams. The price-performance of the yellow metal stays high because though the demand may vary, the availability and quantity of the metal remain limited.

Gold is the oldest currency in use on earth. Therefore, when uncertainty prevails in other markets, investors’ trust shifts to Gold. The other reasons that make gold a suitable investment option are:

It is simple and easy to liquidate
Wealth creation
Proven hedge against inflation
Tangible resource

You can invest in gold in a number of ways, such as gold brick/biscuits, sovereign gold bonds, digital gold, or gold exchange-traded funds (ETFs). Whenever you redeem the gold investment, you receive the current day’s market price. Let us discuss how the yellow metal is a good bet for your investment portfolio.

Today 22 Carat Gold Price in India (INR)

Gram	22K Today	22K Yesterday	Price Change
1 gram	5,540	5,550	-10
8 gram	44,320	44,400	-80
10 gram	55,400	55,500	-100
100 gram	5,54,000	5,55,000	-1,000

Today 24 Carat Gold Rate Per Gram in India (INR)

Gram	24K Today	24K Yesterday	Price Change
1 gram	6,045	6,055	-10
8 gram	48,360	48,440	-80
10 gram	60,450	60,550	-100
100 gram	6,04,500	6,05,500	-1,000

Gold Rate in India for Last 10 Days (10 g)

Date	22K	24K
Jun 12, 2023	55,400 ( -100 )	60,450 ( -100 )
Jun 11, 2023	55,500 ( 0 )	60,550 ( 0 )
Jun 10, 2023	55,500 ( -100 )	60,550 ( -100 )
Jun 9, 2023	55,600 ( 400 )	60,650 ( 430 )
Jun 8, 2023	55,200 ( -400 )	60,220 ( -430 )
Jun 7, 2023	55,600 ( 0 )	60,650 ( 0 )
Jun 6, 2023	55,600 ( 300 )	60,650 ( 320 )
Jun 5, 2023	55,300 ( 0 )	60,330 ( 0 )
Jun 4, 2023	55,300 ( 0 )	60,330 ( 0 )
Jun 3, 2023	55,300 ( -700 )	60,330 ( -770 )

Gold As An Asset Class

After the financial crisis of 2008, investors see gold as a good asset class. When the value of equity and debt instruments is unstable due to market volatility, the gold rate outshines them. In addition, investing in gold brings diversification to your investment portfolio and reduces portfolio risk. Thus, during a low tide in the stock market, gold is an asset that takes you safely to the shore.

As gold is valued in many cultures worldwide, usually the increase in its price is more than the increase in the inflation rate. People purchase gold as a safeguard against increasing inflation. As the demand remains high and the supply is limited, the gold rate remains high. The rate of gold may not be higher than the inflation rate if the Government introduces some duties to curb the demand. Not only inflation but also gold can protect you in times of personal exigencies. It is a high liquidity asset. Selling gold can provide you with money without the loss of its market value.

What is the relationship between the price of gold and the price of a currency?

USD (US dollars) is a worldwide accepted currency. The rate of gold increases when the USD depreciates and vice versa. Thus, fluctuations in USD will cause variations in the global gold rate. The value of INR depends on the demand and supply of USD. When USD depreciates (the gold rate becomes high), its demand increases in the foreign exchange market because more USD will be required for the import of gold. As the demand for USD is high, the value of INR depreciates. In such a scenario, possessing gold is beneficial as its value remains high.

What are the deciding factors for gold price in India?

The calculation of gold price in India is not straightforward and depends on numerous factors.

The global gold price in India is a factor for determining the national gold rate. Therefore, the factors that affect the demand and supply of gold globally automatically become determinants of the gold rate in India. This means economic sanctions, civil wars, tensions between nations and other international problems will always have an effect on the gold rate in India.
The gold rate in India varies with the changes in the USD INR exchange rate. If INR depreciates against the USD, then more currency is needed to buy gold. As a result, the national gold price increases.
India is the largest importer of gold in the world. Thus, a change in import duty affects the rate of gold.
Buying or selling of gold by the Reserve Bank of India produces an impact on the gold rate. This impact is due to the huge amount of the transaction.
The interest rates in the bank can result in changes in the gold rate. When the rate of interest for term deposits is higher, you will prefer to keep money in banks than buy gold. Because of the reduced demand, the rate of gold in India reduces. Conversely, the rate of gold increases when the rate of interest decreases.
The gold price in India experiences seasonal variations. Let us understand how monsoon sees a higher gold rate. Good monsoon means good crop. At this time, the farmers purchase gold as a safety net against tough times when the rain Gods do not favour the crop. The wedding season in India also sees a surge in gold rates as the demand for gold jewellery increases.

Why does the gold rate vary between states?

Despite the daily announcement of the national gold rate, there is a variation in the gold rate between cities. The gold rate in Delhi may not be the same as the gold rate in Gurgaon. Earlier, the differences in local taxes among states resulted in different gold rates. However, after the implementation of GST, the taxation on gold jewellery is 3% while taxation on making charges of gold jewellery is 5%. The cost associated with the movement of gold from the port into the state is another reason for differential gold rate in states.

In metropolitans like Mumbai, buying and selling of huge amounts of gold takes place. Jewellers leverage this to offer a lower gold rate to the consumers. Cities have gold associations that fix the local rate of gold. This happens twice a day. It results in the differential price of gold between cities.

Why do jewellers offer different gold rates?

A number of factors decide the price that a jeweller quotes for a gold ornament. You must be aware that different jewellers demand different making charges. A jeweller may levy making charges as a percentage of the price of an ornament or they may have a flat rate per gram of gold. Apart from this, have you observed that even the rate of gold varies among jewellers? There are reasons behind this difference in the gold rate offered by jewellers. Most important reason being from whom and at what price is the jeweller purchasing gold. Ornaments are made of 22-Carat gold that contains some alloys. Jewellers charge a small price for adding these alloys.

Why is jewellery made of 22-Carat gold instead of 24-Carat gold?

The difference in Carat refers to the purity percentage of gold. While 24-Carat gold is 99.9% pure, 22-Carat gold is 91.67% pure. Lustre of the metal points towards its purity. You may observe that 24-Carat appears brighter than 22-Carat gold. To mould the yellow metal into intricate designs, the delicate nature of gold is strengthened by adding other metals. The addition of different metals to gold creates different colours. For instance, white gold contains Nickel in addition to gold.

What is the significance of Hallmarking?

The Bureau of Indian Standards (BIS) introduced the Hallmarking scheme for gold in the year 2000. The scheme safeguards consumers against the purchase of adulterated gold jewellery or artefacts. A hallmark stamp on gold jewellery indicates that the proportion of gold in the ornament has been measured, recorded, and met the Indian and International Standards. The Indian Standard on Gold Hallmarking IS 1417:2016 recognizes three grades for hallmarking jewellery or artefacts- 14 Carat, 18 Carat, and 22 Carat. An Assaying and Hallmarking (A&H) centre recognized by BIS puts the stamp on gold jewellery. Only jewellers registered with BIS can sell hallmarked jewellery. The latest trends in Hallmarking scheme are:

Introduction of Hallmarking scheme for silver in the year 2005.
Issuance of Government order for mandatory Hallmarking of gold jewellery and artefacts from 15 January 2020.
Implementation of the order from 1 June 2021.

What is the difference between KDM gold and Hallmarked gold?

Artisans use cadmium metal for soldering joints in KDM (Kadmium) gold jewellery. The use of cadmium has proved as a health hazard for artisans as well as the individual wearing the jewellery. Now, artisans use soldering metals that are safe for health. On melting KDM gold, the purity of gold reduces as cadmium mixes with it. The Hallmarked gold differs from KDM gold in terms of purity and soldering metal. Hallmarking of gold does not cause any increase in price. Both Hallmarked and KDM gold have the same price.

Who imports Gold in India and how is the price of 22 carats determined?

India is one of the biggest markets of Gold in the world but interestingly India does not mine gold. It imports the required gold. There are a counted number of gold importers in India and mostly they are government-owned banks, private companies and private banks. They also have a hand in fixing wholesale gold prices in India. The major importers are

State bank of India
Bank Of India
Bank Of Baroda
Punjab National Bank
Yes Bank
Union Bank Of India
Minerals and Metal Trading Corporation Of India

After importing the gold, they add VAT and component duties over it and sell it to wholesalers, who then retail it to retailers. Now coming to how the price of gold is determined in India, the bullion association plays the role here. They arrive at the live gold price. The import of gold takes place based on the importer’s requirement.

What Is Sovereign Gold Bond(SGB) Scheme? Should You Invest In SGB?

From an investment point of view, a sovereign gold bond is a good option. You get multiple benefits when you buy gold this way.

Bond gives you an interest rate of 2.50%.
It is redeemable at RBI stipulated time.
SGB can be bought online and offline.
You can buy them from RBI approved commercial banks. designated post offices and Stock exchanges such as NSE, BSE and Stock Holding Corporation of India Ltd(SHCIL).
There is no risk of fraud or theft.

Coming to whether it is worth investing in a bond than gold, then the answer for the same is, many investors suggest that buying bonds is not worth it because it is taxable. However, we consider that bonds have an edge over other gold purchases as you get the advantage of the gold price and also earn an interest of 2.50% from RBI.

Who is eligible to buy SGB?

Individuals residing in India, HUFs, trusts, universities and charitable institutions are eligible to invest in SGBs. An individual and a HUF can subscribe to a minimum of one gram and a maximum of 4 kilograms worth of Sovereign Gold Bonds in one financial year. The maximum limit of investment in SGB is 20 Kg for trusts and similar entities. An application can be made in a single or a joint name. Sovereign Gold Bonds can also be bought on behalf of the minor by his/her guardian. Payment can be made through cash up to Rs. 20,000 only. Investment above Rs. 20,000 is allowed through cheque, demand draft or a digital mode like NEFT, RTGS, etc. Every application must be accompanied by the Permanent Account Number (PAN).

Lock-in and Maturity o SGB

The tenor of the bond is 8 years but early redemption is allowed after five years from the date of issue. The bonds are held in the books of the RBI or in demat form. Though there is a lock-in period of five years and cannot be redeemed before it in the primary market yet the bonds are tradable in the secondary market if held in the demat form. Investors who want to exit before the end of five years from the date of issue have an option to sell the bonds in the secondary market through their brokers.

Tax benefit

Interest received from bonds is taxable but TDS is not applicable to it. The long term capital gains tax arising on redemption or maturity of SGB to an individual will be exempted. As the bonds are transferable, the indexation benefits will be available to long term capital gains arising to any person on transfer of bond.

Can You Bring Gold To India from foreign trips?

In India, people’s fascination for gold is unparalleled. Therefore, when someone returns from a foreign country, they bring gold with them. However, you must be aware of Indian government rules regarding the import of gold. A male passenger is allowed to bring gold worth Rs 50,000, while a female passenger is allowed to bring gold worth Rs 1 Lakh. If your children are accompanying you on the journey, they are also entitled to bring in gold, but the total limit is 1 Kg for a family. You will have to show the purchase receipt after arrival to avoid consequences.

It is pertinent to note here that the government is discouraging the import of gold in the country because gold is paid for in dollar terms and it is a drain on the country’s forex reserves.

How To Check The Purity Of Gold?

You can check gold’s purity by various mechanisms. And one of the most common and easiest methods to check purity is the magnet method. In the magnet method, we use simple logic to test its purity. If the gold contains impurity in terms of metal, it will get attracted by the magnet. The skin test is also a popular way of checking gold purity. Take gold you want to test in your hand and hold for some time. The metal will discolour if it is not original.

How To Sell Gold?

If you have to sell gold in India, then there are plenty of platforms present where you can sell gold. Some specialized companies also purchase gold. However, to ensure you are not duped while selling your gold, you should keep the receipt of gold jewellery that states the shop and purity of gold. Buyers use a karat meter to check the gold purity. You should be extra careful when selling gold to any buyer.

How Check Gold Purity In India?

A buyer needs to keep the focus on the Gold purity he/she is buying. It is pertinent to check the hallmark. Although unlike before reputed jewellers sell only hallmark jewellery. With hallmark gold, you could be certain that you are buying pure gold.

What is the difference between 24 karats and 22 karats Gold?

The purity of gold gets measured in Karat. The 24 karats gold, means all the 24 karats of the precious metal is gold, there is no mix in it. This is the purest form, we can consider it as 99.9% pure. The 22 karats is 91.67 % pure. It means the metal has 22 karat gold in it. The other is 18 karats gold. This is 75% pure gold. The rest 25% comprises other metals. Another way of examining gold purity is checking its colour. 24 karats gold has a bright and alive colour. The 22 karats look a little less bright. When metals are added to gold like copper it changes its colour. For example, white gold has nickel as a combination in it.

Click here to Know: How to Buy Gold?