Gold Rate Today in Kadapa

Kadapa in Southern Andhra Pradesh is rich in black and red ferrous soil and known for its black limestone. Kadapa is the gateway to Thirumala hills, where Tirupati temple is located. As of November 2022, the Tirumala Tirupati Devasthanams (TTD) said it has 10.3 tonnes of gold deposits and thousands of crores of rupees in nationalised banks. Many worshippers donate gold and money regularly to the temple as a token of gratitude.

Factors Impacting Gold Rates in Kadapa

• The prices of gold in Kadapa are directly affected by demand and supply fluctuations. Gold is in high demand during weddings, festivals, and auspicious days like Akshay Tritiya, which increases the price.
•  Bullion trade is carried out in US dollars. Since it is a dollar-denominated asset, every time the US dollar value rises against the Indian rupee, the price of gold in Kadapa rises. This rise is specifically due to high import costs paid by gold traders, which then get passed on to the next level of trading in Kadapa.
• Gold prices vary from one state to another based on the fuel spent on transporting the gold from the central point. The costs of carrying out the transportation safely also get added to the final price of gold.
• Gold surges in value when the stock market falls. Similarly, the increase in the cost of living causes gold prices to go up. This is because gold is seen as a haven when the economy is volatile. 
• Periods of increased interest rates also lead to a fall in gold prices, as people prefer to invest in high-interest-rate paying instruments instead of gold.

Taxes on Gold

The price of gold purchased by you in Kadapa contains the following taxes:

• Import Duty: An import duty of 12.5% is charged on gold imported into the country. 
• Agriculture Infrastructure Development Cess: 2.5% of AIDC is charged on imported gold. 
• GST on making charges: When physical gold is moulded into jewellery, it attracts making charges. A GST rate of 5% is to be paid on these making charges.
• Hallmarking charges: You pay ₹ 35 per article of gold for the hallmarking.

Gold Purity

The Bureau of Indian Standards (BIS) has made hallmarking mandatory to guarantee the purity or fineness of precious metal articles. This protects buyers from purchasing adulterated gold and ensures that your gold fetches the right price if you want to liquidate it.

Registered jewellers in Kadapa and the country must only sell hallmarked gold articles. The purity of gold is measured in karats (K). A 22K BIS hallmarked gold article will have the BIS logo. 24-karat gold is the purest, as it has 99.9% gold. However, it is too soft for use and hence, is strengthened by the addition of metals such s zinc and copper. 22K contains traces of copper, silver, nickel and zinc apart from gold, which makes it durable. It is also called 916 gold, as it has 91.6% gold. The price of 916 gold is calculated by multiplying 0.916 by the price of 24 karat gold.

Alternatives to Buying Gold Jewellery

Buying gold jewellery and coins involves paying the making and waste charges. These are not recovered when you resell these items. So if you are buying gold purely as an investment, here are a few alternative options:

• Sovereign Gold Bonds (SGBs): Various gold bonds are issued from time to time by the Reserve Bank of India (RBI). These bonds are denominated in grams of gold. The owner receives an interest payment of 2.5% on a semi-annual basis. At maturity, the bond can be redeemed at the then price of 24-karat gold. 
• Gold Exchange-Traded Funds (ETFs): A gold ETF is a passive investment instrument based on gold prices and investment in gold bullion. Gold ETFs are units that stand for physical gold. One gold ETF unit = 1 gram of gold and is backed by physical gold of very high purity. 
• Gold Mutual Funds: These funds invest in gold-linked instruments such as gold bonds, equity of syndicates involved in mining, importing, refining of gold, etc. They are professionally managed, risk calibrated, and may offer high returns.