Gold Rate Today in Bihar

Located in eastern India, Bihar is famous for its numerous monuments and pilgrim sites. Buddhism and Jainism, two great religions of the country also originated here. It has also been home to powerful emperors and spiritual leaders such as Ashoka, Chandragupta Maurya, and Gautam Buddha. From royal times, gold and silver jewellery crafted by the artisans of Bihar have been famous, leading to a high demand for gold since the early days. 

People of Bihar buy gold for investment purposes and to adorn themselves during the festivities, as it is considered auspicious. Thus, the demand for gold skyrockets during the festive and wedding season. Now the question is, where can you buy gold in Bihar, and what are the prices? Read on to get answers to all your queries and how to make informed investment decisions.

Gold Investment Options In Bihar 

Gold jewellery, coins, and bars are some of the most purchased items of Gold in Bihar. In addition, below are other options to invest in gold in Bihar.

Physical Gold

One of the most sought-after and traditional ways of investing in gold is buying physical gold. It can be purchased either in the form of jewellery, coins, or bars. 

Gold Mutual Funds (MF)

It is a safer way to invest in gold. In this type of fund, investors' money is pooled and invested in the companies in gold or activities related to gold. 

Gold Exchange-traded Funds (ETFs)

Gold ETFs are units of physical gold that may be in paper or dematerialized form. 1 Gold ETF = 1 gm of gold (backed by physical gold of the highest purity). These are similar to individual stocks and are traded on the stock exchange. 

Sovereign Gold Bonds (SGB)

In the recent past, SGBs have become a popular investment option in digital gold. SGBs are the government's debt securities, denoted in grams of gold and issued by the RBI. As an investor, you can purchase SGB in terms of cash and redeem them in the same form at maturity.

Taxes Levied On Gold Rates In Bihar

The Goods and Service Tax (GST) is a single tax levied on the sale of goods and services within India's boundary for consumption. This multi-stage and destination-oriented tax is imposed on every value addition.

GST is imposed on the purchase of gold jewellery and making charges. Currently, 3% GST is levied on gold jewellery. It means the gold rate in Bihar will be 3% higher after adding GST. Let's simplify the calculation with a simple formula.

Gold rate in Bihar = {(Gold rate * weight (in grams)) + 3% GST}

Apart from jewellery, GST might also impact the prices of gold coins and bars.

Factors Affecting Gold Prices In Bihar 

In Bihar, every celebration or festival is commemorated with a gold coin or jewellery. So, if you are buying gold, you need to know certain factors that dictate gold prices in Bihar.

Supply

As the gold is extracted from the mines, its supply changes from time to time. When the supply of gold is higher, its price decreases, and vice versa. 

Demand

During the festival and wedding season, the people of Bihar start buying gold, thus increasing its rate. Demand for gold also increases during Akshay Tritya as it is considered an auspicious day to purchase gold. On the other hand, when demand is less, the rates for gold decrease. 

Production Costs

Production costs directly impact the gold rate. This means if the gold mining companies increase their costs, then gold prices automatically increase. 

Gold Reserves by the Government 

The Reserve Bank of India (RBI) reserves the country’s gold for future use. When the RBI increases its gold reserves, it leads to a significant increase in gold rates and vice versa.