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There has been a sharp rise in the prices of gold and silver in the domestic and international bullion market during the last one week. This record rise in precious metals, just ahead of the upcoming festive season and wedding demand, has attracted the attention of both buyers and investors. In the last 7 days of trading session, 24 carat pure gold has become costlier by about ₹ 1,260 per 10 grams, while 22 carat gold, which is most used in jewellery, has risen by about ₹ 1,150 per 10 grams.
Along with gold, silver has also made a big record by increasing its shine. Due to industrial demand and global indicators, the price of white metal i.e. silver has registered a historic rise of up to ₹ 10,000 per kg in the last one week. Due to this sudden rise, the turmoil in the bullion markets has intensified.
Gold prices have been in a steady upward trend over the last few trading sessions on the Indian Bullion Market (IBJA) and major commodity exchanges.
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24 karat pure gold (99.9% purity): The price of 24 carat gold has increased by about ₹1,260 per 10 grams within a week. This gold is mainly used for pure gold bricks, coins and bullion investments.
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22K Jewelery Gold (91.6% Purity): There has been a steep increase of about ₹ 1,150 per 10 grams of 22 carat gold suitable for making jewellery. If you are planning to buy gold jewelery for weddings or festivals, then you have to pay a base price of more than ₹ 1,150 per 10 grams.
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18 karat gold (75% purity): Prices of 18 carat gold, used in light and diamond studded jewellery, have also seen a jump from an average of ₹900 to ₹950 per 10 grams.
The rise in silver prices by ₹ 10,000 per kg has surprised even market analysts. Generally, the scope of silver depends more on industrial demand than gold.
According to market experts, mainly two big factors are working behind this huge surge in silver prices. First, there has been unprecedented growth in global industrial demand for silver in solar energy panels, electric vehicles (EV), and modern electronics devices. Second, hedge funds and institutional investors in the international market have invested heavily in silver considering it to be the strongest hedge against inflation, due to which silver jumped straight to ₹10,000 per kg in the domestic market due to supply shortage.
There is slight variation in the retail prices of gold and silver in different cities of the country due to local taxes, transportation charges and margins of local jewelers associations. Today the probable average retail rates in major cities of the country are being recorded as follows:
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Lucknow and Uttar Pradesh (Kanpur, Varanasi, Agra): In the capital Lucknow, the price of 24 carat gold is around ₹1,54,700 to ₹1,55,990 per 10 grams, while 22 carat gold is trading at the level of ₹1,41,800 to ₹1,43,000 per 10 grams. In Lucknow’s Aminabad and Chowk Sarafa markets, silver has crossed ₹ 1,00,000 per kg.
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New Delhi (NCR): In Delhi bullion market, 24 carat gold is in the range of ₹1,54,390 to ₹1,54,800 per 10 grams and 22 carat gold is in the range of ₹1,41,520 per 10 grams.
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Mumbai (Financial Capital): In Mumbai’s Zaveri Bazar, 24 carat gold is at around ₹1,54,660 per 10 grams and 22 carat gold is at ₹1,41,770 per 10 grams.
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Kolkata and Chennai: In Kolkata, 24 carat gold is being sold for ₹1,54,460 and in Chennai due to high local demand, it is being sold around ₹1,55,110 per 10 grams.
According to bullion experts, there are 4 major domestic and international reasons responsible for this recent rise in gold and silver prices:
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Global Uncertainty and Safe Haven Investments: Due to increasing geopolitical tensions and fears of conflict in various parts of the world, foreign investors are increasing investment by withdrawing money from the risky stock market and considering gold as a safe haven.
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Continuous purchases by central banks: Many major central banks of the world, including the Reserve Bank of India (RBI), are continuously increasing the share of gold in their foreign exchange reserves. Market sentiment has strengthened due to heavy purchases by central banks.
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Dollar Index and Interest Rates: The movement of the US dollar in the international currency market and the monetary policies of major central banks have also provided direct support to the bullion market.
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Domestic festive demand: In view of the upcoming festive season in India (Dussehra, Dhanteras, Diwali) and auspicious occasions for marriages starting from November, jewelers have started advance bulk purchasing to increase their inventory.
If you are planning to buy gold jewelery for wedding or investment amid this boom, then do not forget to follow some important financial rules:
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6 digit HUID Hallmark: As per government mandated rules, always buy jewelery with 6 digit ‘Alphanumeric HUID’ (Hallmark Unique Identification) code. This code is BIS certified and gives a legal guarantee of the purity of gold.
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Mathematics of GST and Making Charge: The price of gold displayed in the bullion market does not include 3% GST and making charges (usually 8% to 18%). While making the bill, always check the base gold rate, making charge and 3% GST separately.
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Be sure to get a confirmed bill: While purchasing from any jeweller, accept only a valid bill mentioning the total weight of the jewellery, purity of gold (carat) and hallmark number.