Gold Rate Today in Bhubaneswar

Bhubaneswar, known as “the Temple City”, is the capital city of Odisha. Bhubaneswar is known for its rich culture and history. Besides being a popular tourist destination, it is an emerging hub for health, education, and information technology.

Furthermore, Odisha is popular for exquisitely carved gold jewellery, and the region is home to several talented artists. Gold is a popular gifting article during celebrations, marriages, and other significant events. 

However, when buying gold in Bhubaneswar, you must know the factors affecting the rates and how taxes impact the prices. 

Taxes on Gold in Bhubaneswar 

In India, there are two types of import duties applicable to gold imports. These are:  

• Customs Duty - 12.5%
• Agriculture Infrastructure and Development Cess (AIDC) - 2.5%

Moreover, you will also have to pay a 3% GST on the gold’s price. When gold is designed into jewellery, it attracts making charges, and an additional 5% on making charges is also levied. 

The cost of gold may be significantly impacted by taxes. For instance, if taxes on gold are raised, gold’s price would also probably rise.

In India, the introduction of the GST has resulted in increased gold costs for consumers. In the pre-GST regime, there were fewer taxes, which reduced the overall cost of purchasing gold. 

Some Interesting Facts on Gold

1. Gold has been used as a currency for thousands of years, with the first gold coins minted in ancient civilizations such as Greece and Rome.
2. Gold is resistant to corrosion and does not tarnish, making it a popular choice for jewellery and decorative objects.
3. Gold has several industrial uses, including in the production of dentistry and electronics and the aerospace and construction industries.
4. Bhubaneshwar, also known as the Temple City of India, is home to numerous ancient temples that are adorned with gold-plated doors and figurines.
5. Bhubaneshwar is known for its skilled goldsmiths and artisans who have been crafting gold jewellery for generations.

Gold Purity in Bhubaneswar

If you want to buy gold, you must first check the purity by looking for the BIS logo and the year of manufacturing. The BIS is the Bureau of Indian Standards, and they inspect the gold to ensure its purity. They assign a hallmark, which guarantees the gold’s purity in  Bhubaneswar. 

The hallmark and gold karats must be stamped onto all gold items by licenced jewellers.

Gold purity is expressed in karats. The purest gold is 24-karat, which contains 99.9% gold. However, it is soft and does not hold shape and is therefore unsuited for making jewellery. Consequently, 22-karat gold is typically utilised to create gold jewellery. This comprises 22 parts gold and two parts copper, silver, nickel, and zinc alloys. 

Moreover, jewellery can also be created from 14- and 18-karat gold.

How is the Purity of Gold Evaluated in Bhubaneshwar?

The purity of gold is an essential factor that determines its value. In Bhubaneshwar, the purity of gold is usually evaluated in terms of karats, with 24 karats of gold being the purest form. The purity of gold is determined by weighing the gold and calculating the percentage of pure gold present in the alloy.

In Bhubaneshwar, several methods are used to evaluate the purity of gold. 

• One standard method is the touchstone test, which involves rubbing a small sample of the gold against a touchstone and comparing the colour of the mark left behind to a chart of known gold alloys.
• Another method used to evaluate the purity of gold is the acid test, which involves applying a small drop of acid to a sample of gold. The reaction of the acid with the gold can indicate the purity of the gold.

To ensure the purity of gold, it is best to purchase gold from reputable jewellers or dealers who certify its purity. It is essential to purchase gold from reputable sources to ensure the purity of the gold.

Points to Consider While Buying Gold in Bhubaneswar

When purchasing gold in Bhubaneswar, it is advised to take the following factors into account:

• Make sure you pay for the amount and purity level of gold. 
• Avoid purchasing un-hallmarked gold, as its value or purity is not guaranteed.
• If you purchase gold in the form of jewellery, you may be required to pay making charges; this can be an unnecessary cost if you intend to invest.

Alternatives to Gold Jewellery in Bhubaneswar

In Bhubaneswar, investors most frequently purchase physical gold in jewellery form or as bars or coins.

In addition to physical gold, Bhubaneswar also offers a variety of other ways to invest in gold. 

1. Gold ETFs (Exchange Traded Funds)

Investors can indirectly invest in gold using exchange-traded funds (ETFs), which are financial instruments that follow the price of the precious metal. Gold ETFs may be purchased and sold all day long on exchanges, just like any other investment. 

2. Gold Mutual Funds

Gold mutual funds are open-ended funds that invest in gold ETF units.

3. Sovereign Gold Bonds

Government securities called “gold bonds” are valued in grams of gold. These gold bonds are issued by the Reserve Bank of India (RBI). The issuance price is paid in cash, and the gold bonds are redeemed in cash when they reach maturity.

Factors Impacting Gold Rates in Bhubaneswar 

Have you ever thought about why gold prices change so frequently? The price of gold in Bhubaneswar is always fluctuating for several reasons. Let us see a few of the leading causes:

1. Demand and supply 

Most importantly, gold rates in Bhubaneswar are determined by the forces of demand and supply in the market. If there is more demand for gold than supply, then the rates of gold will go up and vice versa.

2. Interest rates 

Interest rates and gold rates are both influenced by economic conditions. When interest rates are low, gold rates tend to be high because investors are seeking ways to preserve their wealth. 

Conversely, when interest rates are high, gold rates tend to be lower because investors have other options for earning a return on their investment.

3. Inflation 

Inflation can have a significant impact on gold prices in Bhubaneswar. When inflation is high, gold becomes more beneficial because it is seen as a hedge against rising prices. On the other hand, when inflation is low, gold becomes less attractive and may even decline in value.

4. US Dollar rates

The value of gold in Bhubaneswar is greatly influenced by the US dollar. Gold prices typically decrease when the US dollar is strong and increase when the US currency is weak.

5. Change in custom duty 

In Bhubaneswar, the cost of gold additionally includes bankers’ and dealers’ margins and customs duty. The prices of gold will change if the government makes a statement that modifies these duties.