Gold Rate Today in Ajmer

Ajmer sees a surge in the buying and selling of gold during festival seasons. With high demand and limited supply, the prices of gold in Ajmer tend to go up during these periods. However, besides festivities, many other factors can contribute to gold price fluctuations in the city. If you are thinking of investing in gold, you must understand these elements and be aware of the ongoing gold rates in Ajmer.

Investment Options for Gold in Ajmer

Conventionally, gold was purchased as jewellery, coins and bars. But there are currently multiple ways to invest and trade in gold. For instance, if you don't want to hold gold in the physical form, you can opt for gold-related stocks and funds. They offer the dual benefit of investing in gold without the fuss of owning physical gold.

Although jewellery continues to be the most popular investment mode in Ajmer, several alternatives are also gaining popularity. Here's a look at some of them:

Gold ETFs

Gold ETFs or Exchange Traded Funds are financial instruments that offer the flexibility of stock investment coupled with the ease of trading in gold investments. One can invest in gold ETFs online, where each unit of ETF is equivalent to 1 gram of gold.

Some benefits of investing in gold ETFs include:

• As ETFs are traded on the stock exchange, they can be bought and sold easily without liquidity issues.
• If held for longer than a year, gold ETFs may offer certain tax benefits.
• Since ETFs are held in a dematerialized form, you don’t have to worry about the safety of the asset or storage issues.

Gold Mutual Funds

Gold mutual funds are types of mutual funds that invest in the stocks of companies engaged in gold mining, production, marketing, distribution etc. The underlying asset of each fund is physical gold. Hence, any change in the market rate of gold affects the value of the funds.

Gold Derivatives

Another viable yet high-risk option is trading in gold derivatives. However, before beginning to trade, you will require an account with a commodities broker.

Factors Affecting the Gold Prices in Ajmer

Multiple factors affect the rate of gold in Ajmer, including but not limited to the following:

Demand

Higher demand for gold drives up prices - a phenomenon commonly observed during the festive seasons. The demand for gold in Ajmer is sky-high on auspicious days such as Dhanteras. What’s more, gold is considered to be a very safe investment option that acts as a safe hedge against inflation. Thus, people are more likely to invest in gold for long-term returns.

Inflation

During inflation, the value of the currency goes down. Consequently, people tend to hold on to their gold assets, driving the prices up.

Global Gold Market

Since India is a prime importer of gold, any changes in the price of gold globally affect the rates in Ajmer as well. For example, if the price of gold dips in the international market, gold prices in Ajmer will also fall.

Impact of GST on Gold Rate in Ajmer

The Goods and Services Tax (GST) was introduced in India in 2017. Before GST, customers had to pay a Value-Added Tax (VAT) of 1.2% on gold. But now, you have to pay a GST of 3% on all gold purchases.

Additionally, if you buy gold in the form of jewellery, you must pay 5% GST on the making charges of converting raw gold into ornaments.

Apart from GST, the government levies three types of import duties. Those are as follows -

• Customs Duty - 12.5%
• Agriculture Infrastructure and Development Cess (AIDC) - 2.5%
• Social Welfare Surcharge - 10% of Customs Duty

Thus, government taxes and duties play a crucial role in determining the gold prices in Ajmer, as well as the wh

What are the Factors Affecting Gold Prices in Ajmer?

• Value of US Dollar

Gold prices in the country decline if the US dollar is strong because investors will place their money in the currency rather than the metal. On the other hand, banks typically invest in gold rather than the dollar when the dollar weakens. The price of gold rises as a result of this increasing demand.

• Import expenses

India only owns a few gold mines and has to import large quantities of gold from other nations to meet its gold demands. Hence, import rates have an impact on gold prices domestically. Since transactions are conducted in US dollars, gold prices rise when the dollar is strong.

• Economic instability

Because gold is seen as a stable asset, its price tends to rise during economic downturns. Investors divert their capital from riskier investment avenues and turn towards gold since it is considered a safety net. Additionally, gold has a high level of liquidity and maintains its high value throughout unstable periods.

• Seasonal demand

During auspicious festivals and wedding seasons, there is typically an increase in demand for gold in Ajmer, which drives up prices.

• Inflation

Whenever there is inflation, gold prices often increase. This is because gold is purchased as a hedge against inflation, and thus, its price witnesses a hike.

• Domestic transportation cost

Most of Ajmer's gold is imported. Due to the expense of transporting the precious metal, port towns like Mumbai and Chennai typically have slightly cheaper expenses than those located far from the port, like Ajmer.