Gold Rate Today in Bhilwara

Indians place a great deal of value in gold, sometimes even more so than in real estate. Apart from its function as a symbol of prosperity and richness, gold jewellery is also designed to enhance a person's beauty. It is considered a hedging tool against inflation and unforeseen situations. Buying gold at low rates and investing your hard-earned money in this precious metal is common practice, especially in Bhilwara.

Bhilwara is a culture-rich region of Rajasthan, and you can find various gold jewellery designs besides standard gold coins and biscuits. People often prefer 22K (91.6% pure) gold for jewellery and 24K (99.9% pure) gold for coins and biscuits. This is because 24K gold is an extremely soft metal that is easily malleable and ductile, whereas 22K gold is mixed with other metals (like silver, copper and zinc) to lend hardness.

How does GST Affect the Gold Rates in Bhilwara?

When buying gold, it is important to keep in mind that the purchase of precious metals is subject to various taxes and other duties. In Bhilwara, purchasing gold jewellery is subject to a 3% GST on the value of gold. Additionally, a making fee of 5% is also implemented under the GST regime.

Gold Investment Options in Bhilwara

Physical Gold Asset

Often accumulated in the form of gold bullion and jewellery, physical gold is popularly considered a hedge against inflation and a life jacket for financial emergencies.

Gold ETFs

Gold-based exchange-traded funds (ETFs) are specialised instruments that represent a specific amount of gold, like a few grams. These ETFs are bought or sold like regular stocks in brokerage or Demat accounts. The annual average expense ratios of ETFs are mostly less than 1%, making them a desirable investment for small-scale or beginner investors. 

Gold Mutual Funds

They are used to invest in gold reserves directly or indirectly. In these funds, gold is not considered a commodity but an entity. Investments are made in stocks of syndicates producing and distributing gold and stocks of mining companies.

Sovereign Gold Bonds (SGBs)

These bonds are a method of owning paper gold, and are issued by the government. However, SGBs are not available on demand. Instead, the government will intermittently open a window for the fresh sale of SGBs to investors.

Gold Futures and Gold Options

Gold futures are contracts to buy or sell a certain amount of gold at a specific date in the future. These instruments of investment require investors to have expertise in the field. Therefore, another alternative to buying futures outright is options. People often invest in futures since the commissions are quite low, and the margin requirements are way below the requirements set by traditional equity investments. In gold options, the futures can be bought within a specific period after evaluating the gold price trends. One significant benefit of buying an option is that it utilises the original investment but limits the losses that might have been incurred from the price paid. Gold futures bought on margin may require more investment than what was originally invested if losses go up quickly.

Gold Mining Companies

A hike in gold price spells profit for gold mining and refining companies. Investing in these companies carries a lower risk than other gold investments. Since gold mining companies have a globe-spanning network of operations, the business factors push for a profit even in times of falling gold rates. However, a lot of research and due diligence is imperative for investing in gold mining companies.

Digital Gold

Payment apps like Paytm, Google Pay, etc., now offer the option to buy digital gold in Bhilwara and other Indian cities. Most of these apps have partnered with MMTC-PAMP to facilitate safe gold transfers in Indian cities. You can even sell the gold you own without even bringing home the physical coins and bullion.

Factors Affecting the Gold Rates in Bhilwara

The common factors affecting the gold prices in Bhilwara are interest rates in developed countries like the USA, overall demand for the metal, government policies, state taxes, import costs and additional costs incurred by jewellers in Bhilwara.

Gold prices vary from one city to another based on several reasons like local tariffs, transport costs, etc. The Bullion Associations in certain cities, like the IBJA (Indian Bullion Jewellers Association), play an essential role in deciding the final price of gold. This is what the majority of retailers follow.