Gold Rate Today in Chandigarh

Chandigarh is the state capital of both Punjab and Haryana. The Rock Garden, a park with sculptures made of stone and repurposed ceramics, is one of Chandigarh's most popular tourist attractions.

Like most of India, the consumption of gold is relatively high in Chandigarh. Gold is regarded as a secure investment asset and a desirable security form for bank loans. The people of Chandigarh usually buy gold during festivals and other auspicious occasions. Thus, during such times, there is a rise in the demand for gold, and consequently, the gold rates rise.

Before buying gold, check the prices, as the gold rates change daily.

Investment Options For Gold In Chandigarh

Gold has a highly distinctive investment portfolio. Although most Indians prefer to buy gold jewellery or coins, newer investment avenues have now cropped up in Chandigarh. Let us look at some of those - 

• Gold Bullions: Bullions are comparatively larger than gold coins. They are often bought in kilograms. 
• Gold Exchange-Traded Funds (ETFs): These funds store gold in dematerialised form. They can be traded on stock changes and offer high liquidity. 1 gold ETF unit = 1 gram of gold.
• Sovereign Gold Bonds (SGBs): These contracts are regularly launched by the Government of India, but only for a specific time frame. You can purchase these at the time of issue via cash and redeem them for cash upon maturity.
• Digital Gold: Numerous payment platforms like PayTM and PhonePe allow you to invest in digital gold. You can invest for as low as ₹1 simply from the convenience of your home. 

Understanding 916 Hallmarked Gold in Chandigarh

The purity of gold is evaluated based on karats (K). 24-karat is the purest form of gold available in the market. It has a purity level of 99.99%.

The other most common type of gold is 22-karat. 22K gold contains 91.67% pure gold mixed with trace amounts of silver, copper and zinc. Adding these metals imparts gold the hardness required to be moulded into intricate jewellery designs. Owing to its purity level, 22-karat gold is commonly known as 916 gold.

The Bureau of Indian Standards (BIS) carries out the authentication of gold articles in India. Once the purity of gold is evaluated, the BIS inscribes a hallmark on the gold item.

When you go to buy gold jewellery in Chandigarh jewellery stores, look out for the 22K916 hallmark on the jewellery. This will indicate that the jewellery has been authenticated by BIS and is made of authentic 22-karat gold.

Impact Of Taxes on Gold Rates In Chandigarh

The Goods and Services Tax (GST) was introduced in 2017. Currently, you have to pay 3% GST on all gold purchases. The rate for making charges, which are labour expenses related to the production of gold jewellery, is 5%.

Additionally, three types of import duties are applicable to gold imports to India - 

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

Thus, once all these taxes are added to your gold bill, the total cost rises significantly.

Things to Consider Before Buying Gold Jewellery in Chandigarh

Buying gold is the most beneficial investment you can make. However, there are certain things you must take care of before purchasing gold articles. Such as: 

5 hallmark signs

Gold articles should have all 5 hallmarks that showcase the purity of gold. These include the BIS log, Hallmarking centre's name or log, the manufacturer's logo, hallmarking month, and the HUID (hallmark Unique Identification) number. 

Authenticity certificate 

You should always ask for a copy of the authenticity certificate that proves the purchased gold item has passed the professional test. Another way to ensure authenticity is buying gold from an old, trusted brand with on-premise certified gemologists. 

Making charges

You should pay attention to the making charges or wastages applied to the gold articles. Making charges indicate the current rate of gold; thus, it helps you to avoid paying unnecessary charges. These charges are included in the final cost of ornaments before GST (Goods and Services Tax) at a 3% rate.

Weight

In most gold ornaments, pieces of stone, like emeralds, diamonds, etc., are added, making them heavier. Most jewellers don't exclude the weight of such stones while weighing the purchased gold ornament. Thus, you might be paying a much higher price for the gold. 

Occasions

The number of gold buyers increases comparatively on certain occasions, such as Dhanteras. It pushes up the price of gold items. Thus, it's better to buy gold articles during the off-season at lower prices.

Factors Affecting Gold Prices In Chandigarh

1. Inflation: The country's purchasing power declines when there is inflation because there is less money available for spending. Gold has a long history of proving to be a secure hedge against inflation. It is the best alternative for anyone looking for investments that offer steady returns. Thus, during inflation, people park their money in gold investments and the price of gold rises.
2. Changes in Fixed Deposit (FD) Interest Rates: Changes in interest rates affect gold prices, just as it impacts other financial instruments like bank deposits. The price of gold is inversely correlated with interest rates. When interest rates increase, buyers sell their gold holdings and flock towards FDs as they turn into high-yielding investments. On the other hand, demand for gold increases when interest rates drop because more people are more likely to purchase gold articles with cash in hand.
3. Demand And Supply: A rise in demand leads the price of a commodity to rise. The gold rate is subject to the same law. When there is a spike in demand for gold during the wedding and festive seasons but supply is limited, the price of gold also rises dramatically.
4. International Market Fluctuations: The global gold trade is carried out in US dollars. Also, since India imports most of its gold from other nations, any change in global gold rates impacts the price of gold in Chandigarh. The price would grow in line with an increase in the price of gold in the international market.