Gold Rate Today in Gangtok

Gangtok in the Eastern Himalayas is famous for its beautiful landscapes. Its natural splendour makes it the most captivating hill station in India, and thus it has a steady stream of tourists throughout the year.

Gangtok is famous for its handmade Tibetan carpets and clothes in bright shades, tea and traditionally handcrafted silver jewellery with semi-precious stones. The demand for gold ornaments is also high in Gangtok. You can buy pure or ornament gold in the city from the local jewellers or banks in a measure that suits your financial capacity.

Continue reading to learn more about today's gold rates in Gangtok (updated daily) and all relevant information to guide you to get the best deal on your gold purchase.

Comparison Between 24K and 22K Gold

You may see 22k engraving on a gold ornament inside the hallmark and wonder about its significance. The 'k' in 24K or 22K represents Karat(K), which specifies the purity of gold.

Gold in its purest form is 24K, and gold with 22 parts gold and the rest of it an alloy like zinc, silver or copper is 22K.

24K gold works well for investments but not gold ornaments, as it is malleable and breaks easily. Thus the jewellers add some other metal to strengthen the precious metal to make 22K jewellery.

Impact of GST on Gold Rates in Gangtok

Goods and Services Tax (GST) applies to gold purchases in Gangtok at 3% of the gold market value. But when you buy ornaments, you are buying goods (gold) and the service of the craftsman. Thus GST is applicable in two stages as follows:

• 3% on the market value of gold.
• 5% on the making charges.
• The impact of gold on ornament gold is that gold prices are higher as per GST charges.

Gold vs Other Investment Options

The people of India consider fixed deposits (FD) the safest investment. But how does it fare in comparison with gold? Consider this:

You will receive a fixed or guaranteed return on FD at the end of its tenure. Also, the general economic situation or market fluctuations don't affect it.

But gold rates fluctuate daily and are subject to economic and market conditions, and they can rise and fall any day. However, if you consider the historical rates of gold in the previous months and years, there is a steady rise in global gold prices, and when you think about that, the returns may be much higher than expected.

How is the Purity of Gold Evaluated in Gangtok?

The gold value depends on the purity of the gold; thus, its evaluation is prominent. Here is how you can evaluate the purity of gold in Gangtok.

BIS Mark

You can be sure of its purity when you buy gold with the BIS hallmark. When you look closely at the BIS mark, a triangular-shaped logo, you will see the gold purity grade, the date of the hallmark, and the identification mark of the hallmarking agency and jeweller.

Karat

You will find 22k or 18k engraving on jewellery, indicating that the gold object has 22 or 18 parts gold. But on gold coins, biscuits or bars, you will find 24K engraving suggesting that it is of pure gold.

Identification Mark of the Jeweller

Credible jewellers mark the jewellery they sell, which helps them identify it as their creation during buyback. The logo also makes the selling process easy and profitable for the customer.

Factors that Affect Gold Rates in Gangtok

Because of dynamic prices, you must be sure of the day's gold rates when you buy gold. Here are some of the factors that influence gold rates in Gangtok.

Demand and Supply

The number one factor influencing gold rates is the supply of gold in Gangtok and its demand in the city. The gold rates will rise with the increase in demand and fall with the decrease in supply. Although there is a steady demand for gold in Gangtok, there is a surge during:

• Festival and wedding season in the city
• Auspicious gold buying days, as per the beliefs of the people of Gangtok
• During a bearish market

Import Duty

The gold reserves in India are depleting, but domestic demand for the precious metal is high. Therefore India heavily imports gold and distributes it to various cities, including Gangtok. Thus gold rates rise and fall in Gangtok in proportion to the fluctuation in import duty.

Direct and Indirect Impact of the US Dollar on Gold Rates

When India buys gold in the international market, they use the US dollar for payments. Thus gold prices rise and fall as per the US dollar fluctuations.

Disruption of International Ties Between Gold Trading Countries

The disruption of ties between the gold-supplying country and the gold-buying country can obstruct the transaction resulting in an inability to meet demand. That will make the demand rise further and raise gold prices in Gangtok.

Indian Gold Buying Culture

India has a rich culture, and most people in India buy gold during festivals, auspicious days and weddings. Such a cultural practice results in a sudden rise in demand for gold in the country. 

Similarly, there are times when people believe that it is not beneficial to buy gold, and they abstain from buying the precious metal resulting in a fall in demand and gold prices in Gangtok.