Gold Rate Today in Jammu And Kashmir

Known as a 'must-visit' scenic paradise, the union territory of Jammu and Kashmir is a picturesque destination. A popular destination with tourists and travellers, gold is a preferred investment vehicle in contrast to other places where it is used for industrial purposes. Given its natural beauty, scenic locations, and delicious cuisine, the cultural significance of gold is noteworthy as people view it as a safe haven during uncertainties.

In general, gold is viewed as a relatively safe investment, particularly during periods of political or economic unpredictability. Gold's price is constant during periods of relative peace but changes when there are conflicts.

Factors affecting gold price in Jammu and Kashmir

Below are a few of the key factors affecting gold prices in Jammu and Kashmir.

• Import costs: A higher dollar increases the cost of purchasing gold since transactions are conducted in US dollars.
• Financial stability: Gold is considered a stable investment, and as a result, its price tends to increase significantly during economic crises. Investors prefer gold instead of risky investment channels.
• Seasonal Price: In Jammu and Kashmir, during auspicious festivals, wedding seasons, and other important events, the demand for gold tends to increase. This leads to an increase in prices.
• Inflation: Gold prices tend to increase during times of inflation. Since gold is often bought to create a hedge against inflation, this spiralling trend drives up the price of gold.

Gold vs Mutual Funds

With the advent of paper money and new-age finance, different forms of investments have emerged as possible investment options, particularly gold and mutual funds.

You can invest in debt, equity or hybrid mutual funds, whereas you can invest in physical or digital gold. Investing in mutual funds can involve an amount as small as Rs. 100, whereas for gold investments, one should have thousands of rupees to invest. It is essential to identify one's investment goals and horizon before taking a final decision.

How is the purity of gold judged in Jammu and Kashmir?

To assess or judge the purity of gold, while buying a gold product, one must ensure that the gold jewellery or coins bear the Bureau of Indian Standards (BIS) stamp. All gold products are stamped with a Bureau of Indian Standards (BIS) certificate, which confirms that the gold is extremely pure.

Impact of GST/Central Bank Policy on Gold Rate in Jammu and Kashmir

The effective tax on the value of gold before the introduction of the GST was 2% (1% VAT and 1% service tax). The overall price of gold has increased slightly as GST hits 3%.

Interesting facts about gold in Jammu and Kashmir

• Kashmiri gold jewellery is synonymous with elaborate, well-crafted designs, and distinctive, exquisite workmanship, which reflect the state's rich tradition.
• Additionally, their names are derived from Sanskrit and Persian.
• Mughal Queen Noor Jahan is known to have pioneered the tradition of wearing elaborate jewellery that is now considered a part of Kashmiri culture.
• Jammu and Kashmir's culture is a flourishing one and gold has been an essential facet of its way of life.

Comparison between 22K and 24K Gold

1. While 22-karat gold consists only of 91.7% pure gold, 24-karat gold consists of 99.5% pure gold.
2. The rate of 22-karat gold is slightly lower than that of 24-karat gold due to its purity.
3. 22-karat gold is known to be harder than 24-karat gold as it is alloyed with a larger proportion of metals. Notably, 24-karat gold is more malleable as it is used to make more intricate jewellery.