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Amidst the upcoming festive season and weddings, a relief news has emerged for gold and silver buyers from the Indian bullion market. On Monday, the first trading day of the week, a sluggish and declining trend was recorded in the prices of the yellow metal in major markets across the country. Due to the strength of the US dollar in the international market, slight improvement in bond yields and profit booking on the global commodity exchange COMEX, gold prices have slipped in the domestic futures market i.e. MCX and local spot markets. Along with 24 carat pure gold, the prices of 22 carat gold, which is most commonly used in jewelery making, are also seeing a decline. This softening of gold prices, which had been at record highs for the past few weeks, at the beginning of the week has emerged as a great buying opportunity for common consumers and families who are planning to buy jewelery or gold coins on the holy festivals of Karva Chauth, Dhanteras and Diwali.
According to the latest data released by the Bullion Association, after the decline recorded in the price of 24 carat pure gold (99.9% purity) per 10 grams today, it is trading in the range of ₹ 1,49,170 to ₹ 1,49,670 on an average in the major markets. At the same time, the price of 22 carat gold (91.6% purity), most suitable for jewellery, has also softened to around ₹ 1,36,740 to ₹ 1,37,200 per 10 grams. Along with this, the price of 18 carat gold, which is popular for light and budget jewellery, has also fallen to the level of ₹ 1,11,880 to ₹ 1,12,250 per 10 grams. Market experts say that profit booking by investors at higher levels and mixed signals from global central banks regarding interest rates have currently put a brake on the uncontrolled price of gold, which has led to an increase in inquiries from jewelery retailers at the domestic level.
There is a slight difference in the prices of gold in different metros due to local transport charges levied at the state level, freight and premium fixed by the Bullion Association of different cities. In the financial capital MumbaiClick to open side panel for more information, 24 carat gold remains stable at ₹ 1,49,170 per 10 grams and 22 carat gold at ₹ 1,36,740 per 10 grams. In the bullion market of the national capital Delhi, the price of 24 carat pure gold is around ₹ 1,49,670 per 10 grams and the price of 22 carat gold is around ₹ 1,37,200 per 10 grams. The declining trend in gold prices is also clearly visible in the bullion markets of Aminabad, Hazratganj and Chowk of Uttar Pradesh’s capital LucknowClick to open side panel for more information, where 22 carat jewelery gold is available at around ₹ 1,37,000. In Bengaluru and Chennai of South India too, after local tax, the prices have declined by ₹ 200 to ₹ 400 per 10 grams.
When a customer goes to buy gold jewelery at a bullion shop or a branded showroom, he not only has to pay the original price of gold that is visible on the screen, but many other components also add up to the final bill. First of all, 3 percent Goods and Services Tax (GST) is compulsorily levied on the price of original gold. After this the jeweler adds a ‘making charge’ ranging from 8 to 18 percent depending on the design and complexity of the jewellery. For example, if you are buying 10 grams of 22 carat gold jewelery whose base price is ₹ 1,37,200, then after adding making charges of around ₹ 16,400 (average 12%) and 3% GST of ₹ 4,600, the final bill comes to around ₹ 1,58,000. Therefore, while shopping, always ask for a detailed bill breakup from the goldsmith and negotiate on the making charges, because during the festive season, many big brands also offer special discounts of 25 to 50 percent on the making charges.
One should avoid buying from any unregistered or dubious shop out of enthusiasm when gold becomes cheaper. To guarantee consumer protection and purity, the Central Government and the Bureau of Indian Standards (BIS) have made the 6-digit alphanumeric Hallmarking Unique Identification (HUID) code mandatory across the country. Pure gold jewelery should have three major markings—first the triangular logo of BIS, second a clear number of karat and purity (like 22K916 or 18K750 or 24K999) and third a unique 6-digit alphanumeric HUID code. Customers can download the ‘BIS Care’ app on their smartphones and enter this 6 digit code printed on the jewellery, which instantly verifies the purity of the jewellery, name of the hallmarking center and registration details of the jeweler on the screen. Always get a confirmed GST bill instead of taking the raw form, so that you can get the full and correct price while exchanging or selling the jewelery in future.