18K Gold Rate Today in Pune

Pune is a city in the state of Maharashtra, situated on the Deccan plateau. Pune exemplifies an indigenous Marathi culture and ethos, in which education, arts and crafts, and theatres are given due prominence. The gold market is spread through the length and breadth of this city. Further, there are various sites which offer online purchases of gold jewellery.

Factors affecting gold rates in Pune

• Physical demand for Gold: The demand for gold is fluctuating, gold prices keep changing in Pune daily. Indian Bullion and Jewellers Association, consisting of over 200 members, declares these prices depending on “buy” and “sell” prices quoted by the top gold dealers in the city. 
• Demand and Supply of Gold: The Demand and the supply of gold affect the prices. Purchasing physical gold provides the most direct exposure to the gold. Gold may be demanded for ornamental purposes or investment purposes. Pune is abode to a large number of buyers and sellers. The prices increase due to supply constraints.
• Deterioration of mining activity: The volume of gold mined in India, since 2013, has remained below two metric tons. The demand for gold in India is principally met through imports. India is one of the leading importers of gold in the world.
• Currency fluctuations: It also influences the price of gold. Gold is traded in US Dollars in the international market. The rupee-dollar conversion impacts price.

What to consider while buying gold in Pune

The following points should be kept in mind while buying gold in Pune.

• Determine the current market price of gold in Pune. It is preferred to buy gold when the prices decline.
• Determine and compare the making charges while purchasing the gold jewellery. These can be a significant part of the total purchase cost. Various offers on specific debit cards and credit cards can be availed to save on making charges. 
• It is important to check the BIS (Bureau of Indian Standards) hallmark. BIS hallmarking certifies the purity of gold. This ensures that jewellery conforms to a set of standards laid by the BIS. The BIS hallmark consists of the BIS logo, Purity of Gold and a 6-digit alphanumeric code called  Hallmark Unique identification (HUID).
• Additionally, make sure there is a Karat machine used to check purity.
• Some jewellers in Pune offer a buy-back policy on their gold products. The gold rate will be bought back by the jeweller after deducting making charges. It is important to understand buy-back policies to avoid confusion and hidden charges.

Why do gold prices keep changing

The day-to- changes in the gold rates can be influenced due to the  following factors:

• The high demand during the festival and at the time of weddings is met with a limited supply, which will result in increased gold rates. Large domestic demand adds to the importation and carriage cost.
• Gold is a hedging tool against inflation. The value of gold increases when the cost of living increases. Hence it is like financial insurance against inflation.
• During a situation like demonetisation, Individuals resort to purchasing gold when the present paper cash framework encounters vulnerability.
• Gold prices share an inverse relationship with interest rates. In a scenario of increasing interest rates, the investors are inclined to avail the benefits of increased rates. The demand for gold decreases.

Taxation on Gold Rates in Pune

• Since the demand for gold is majorly met through imports. Custom duty is charged.
• GST is charged on the making charges on gold jewellery.
• 1 % TCS (Tax Collected at source) will be levied on the cash purchase of jewellery if the amount exceeds ₹ 2 lakh.
• Capital Gains Tax is charged on the sale of physical gold at the time of sale. If the period of holding is more than 36 months, the asset will be treated as a long-term capital asset.  It will be taxable @ 20% after allowing the benefit of indexation.
  If the period of holding is up to 36 months, the asset will be treated as a short-term capital asset and will be taxed as per the slab rates applicable to an individual.

How is the Gold Rate determined

The demand for gold is met by importing gold. The following factors will determine the gold rate:

• Currency Fluctuations: Gold is traded in the U.S. Dollar in the international market. The rupee-dollar conversion will impact the prices.
• Rate of Custom Duty:  The customs duty is levied on all imports. Presently 18.45% is charged on the import of gold. The rate of duty is hiked to regulate demand. 
• Gold Reserves by Reserve Bank of India: The Reserve Bank of India holds gold reserves. When the Reserve Bank of India begins to buy more quantities of gold it will increase the cash flow and decrease the supply of gold. This causes gold rates to increase in the domestic market.
• Crude Oil Prices: The crude oil prices and the rates of gold have a positive correlation. Gold and crude oil are indicators of inflation. In many cases when the prices of crude oil increase. 
• Geopolitical Factors: Gold retains its value through financial and geopolitical uncertainties. Hence the demand for gold increases during geopolitical chaos.