Gold Rate Today in Kolar

Kolar, famed as the "Golden City of India," is a well-known town in Karnataka. The city once had the country's largest gold mine, which closed in 2001. Mining was thought to have started in Kolar around the 5th century. Besides gold, the place is famous for milk production, silks, and temples. Because of the abundance of gold in this city, the locals' craze for ornaments is obvious.

Things to Consider When Buying Gold in Kolar

Check the Purity

Examine the hallmarking on the gold coin or ornament you intend to purchase. Check to see if there is a BIS certification mark. The hallmark represents the purity level, engraving date, and jeweller's identity.

Price Check

The price of gold fluctuates daily. It is critical to double-check the price on the commodity exchange to avoid being duped. The advice is to buy the ornaments in the off-season when demand for gold in the Indian jewellery market is low.

Making charges

It represents the labour cost incurred in making the jewellery you wish to buy. This charge varies by jeweller and is higher if the ornament is handmade instead of the use of technology. 

Stone-Studded Jewellery

Avoid stone-studded jewellery if you are purchasing gold ornaments for investment purposes and intend to sell them in the future. These jewels comprise diamonds, rubies, or emeralds. The price and the volatility of different precious metals vary significantly, making valuation difficult.

Buy Back Policy

Kolar Jewellers offers a buyback programme. Under this scheme, you can resell the ornaments to your jewellers at the current market rate, less making charges.

Different Usage of Gold in Kolar

Medicine and Dentistry

Gold is used as salt in medicine to treat ailments like tuberculosis and rheumatoid arthritis. Dentists often use white gold for crowning, fillings, and bridging.

Aerospace

Gold is used in various mechanical parts as a lubricant to allow its circuitry to conduct electricity. It is further utilised to coat the interiors of planes to protect passengers and crew members from heat and infrared radiation.

Electronics

Gold is a good conductor of electricity and does not rust easily. You will find it in small quantities on televisions, smartphones, and GPS systems. 

Alternatives to Physical Gold in Kolar

Digital Gold

Digital gold is available with a minimum investment of one rupee on various fintech platforms. The quantity equivalent to your investment value is reserved in the physical form in the vault. 

Gold Mutual Funds

Rather than investing directly in gold, mutual funds invest in the stocks of companies involved in gold-related activities such as mining, manufacturing, refining, and transportation.

Sovereign Gold Bonds

The maximum holding period for such bonds is 8 years, with a 5-year lock-in period. They are a government-backed interest-bearing instrument issued by the RBI. Each bond unit represents one gram of 24K physical gold. Sovereign bonds have a coupon rate of 2.5% that is paid every six months.

What Factors Affect the Gold Prices in Kolar?

Demand and Supply

This factor influence gold prices directly. When demand exceeds supply, prices rise to maintain equilibrium.

Inflation

Inflation reduces the value of a currency. During such times, people invest in gold to mitigate the risk of inflation instead of holding cash.

Central Bank

The central bank ensures liquidity by keeping cash and gold reserves in hand. If the Reserve Bank of India (RBI) begins stockpiling physical gold, the price is likely to rise due to a potential supply shortage.

Interest rates

The interest rate is inversely related to gold. People prefer to invest in gold when interest rates on savings and fixed deposits fall, leading to a demand and price increase.

USD movement

The imports and exports of gold are carried out in USD. If the USD rises in value against the Indian currency, imports will become more expensive, as will gold purchases.