Gold Rate Today in Bhuj

Bhuj is renowned as Gujurat's Desert City. It is a one-of-a-kind city with several temples, narrow streets, and traditional handicrafts. The city is home to several historical landmarks, including relics of the Indus Valley Civilization (Harappan) and locations related to the Mahabharata and Alexander the Great's march. The city welcomes a lot of tourists coming to see its culture. Tourists, residents and people coming from nearby places for weekend outings surge the demand for gold in Bhuj.

Options to Invest in gold in Bhuj

Gold is considered to be a hedge against market inflation and volatility. gold is a safe investment whether you buy it in paper form or physically. 

Physical gold: It is the most sought-after gold. Physical gold consists of jewellery, artefacts, and home goods. You can buy physical gold from a jeweller on the offline market and online from their website or apps. Physical gold comes with hallmarking charges, making charges, GST etc.

Paper gold: Paper gold consists of gold ETF, gold Option & Future and gold stocks. These can be purchased with your demat or trading account. Nowadays, various mutual funds track gold prices. If you want to diversify your investment portfolio, you can consider paper gold.

How to Invest in gold ETFs?

You can invest in gold ETFs through mutual fund platforms. All you need is your AADHAR, PAN and bank account to get started. Different platforms charge different fees. You should go over all the offerings and sign the paperwork. As per SEBI regulations, a fund manager must invest at least 95% of the fund value in gold and gold-related instruments.

Impact of GST on gold Prices in Bhuj

As per the Government of India, there is a tax to be paid on every purchase of gold-made products. Paper gold, such as ETFs, options and futures, is exempt from taxation. Effective from 1/7/2017, the Government has revised the tax rate upon implementing GST. However, the customs duty charge of 10% has remained unchanged. Look at the table below to understand the differences:

Gold-Made Products
Before 1/7/2017: 1% VAT + 1% Excise Duty
From 1/7/2017: 3% GST

Gold ETFs, Futures & Options
Before 1/7/2017: No tax
From 1/7/2017: No tax

How to Check the Purity of gold in Bhuj?

There are two kinds of gold present on the market, i.e. hallmarked gold and KDM gold. It is easy to check the purity of gold in hallmarked gold. The hallmark is a symbol that is stamped on gold to indicate that it meets certain standards regarding quality and purity. The Bureau of Indian Standards (BIS) is the national standards body of India and it certifies gold jewellery in India. Look for 3 signs:

• The BIS logo is a symbol of quality and purity and is used to certify that a product meets the highest standards of quality and performance.
• Gold Purity Grade/Fineness is a measure of the proportion of pure gold in a piece of jewellery or other gold product. The most common fineness for gold is 22K, which is 22 parts gold and 2 parts other metals. The finer the gold, the purer it is.
• A 6-digit alphanumeric Hallmark code is a unique code assigned to each piece of jewellery or other gold product that is hallmarked by BIS. The code includes information about the manufacturer, the fineness of the gold, and the date of hallmarking. The first 3 digits of the code represent the BIS-approved Assaying and Hallmarking centre, the next 2 digits represent the purity of the metal and the last digit is the year of hallmarking. The hallmark code helps to ensure traceability and accountability and helps consumers to verify the authenticity of the product. 

Factors affecting the gold rate

There are several factors that can affect the price of gold in India. Some of the main factors are:

International Prices: The price of gold in India is closely linked to the international price of gold. The international price of gold is affected by various factors such as global economic conditions, interest rates, and geopolitical events. These factors can affect the price of gold in India.

Inflation: Inflation can also affect the price of gold in India. High inflation can make gold more attractive to investors as a hedge against inflation.

Rupee-Dollar Exchange Rate:  As gold is traded in dollars, fluctuations in the INR-USD exchange rate will affect the price of gold in India. A stronger rupee will make gold cheaper, while a weaker rupee will make gold more expensive.