Gold Rate Today in Kumbakonam

Kumbakonam is the second largest city in Thanjavur district, Tamil Nadu. The city has a large number of temples, due to which it is known as a 'Temple Town'. It is famous for its festival of Mahamaham, which is celebrated once in 12 years. Precious metals like gold and silver have always been a part of local culture and traditions.
Gold is a metal which protects people from uncertainties in the long run. People living in Kumbakonam depend on gold when other assets are not performing well in the market and are relatively unstable. However, the demand for gold in this city is maximum during the festival and wedding season. This is the reason the prices of gold are also at a peak during this time. In detail, let us understand the factors influencing gold prices in Kumbakonam.

Difference Between 24K and 22K Gold

The prices of gold in Kumbakonam depend on its karat value. Before buying gold in Kumbakonam, you must know the difference between 24K and 22K gold. 

Purity - 24K is the purest form of gold with 99% of purity, whereas 22K gold stands at second rank in terms of purity with 91.6%.

Cost - 24K is more expensive than 22K gold because of its high purity.

Purpose - 24K gold is purchased for investment because of its soft nature. On the other hand, 22K gold is used for jewellery purposes as it is more durable than 24K gold.

How are the Gold Prices Fixed in Kumbakonam?

Determining the prices of gold in Kumbakonam is a complicated task which involves multiple estimations. Gold prices are fixed daily. International market prices of gold are also responsible for determining the gold rates in India. Following are some of the points which are considered while fixing the gold prices in Kumbakonam -

• The current market price of other commodities.
• The rising money supply leads to global inflation.
• The policies of the Central Bank regarding the purchase and sale of gold and money printing.
• Interest rates prevail in the US market. This gives an understanding of financial repression.

How is the Purity of Gold Evaluated in Kumbakonam?

Sometimes, people end up buying impure gold due to unawareness. Therefore BIS has stated various points you must check before buying gold in Kumbakonam.

• BIS Standard Mark - The most important sign you check before buying gold in Kumbakonam is the mark of BIS. This triangular-shaped mark ensures that BIS verifies the purity of the gold you buy.

• Level of Purity - The second important sign you must check on your jewellery is its hallmark in the form of fineness grade. This tells you the level of purity of gold. As per BIS, there are six forms of levels of purity.

• Hallmark Identification Number - It is the six-digit alphanumeric code engraved on the piece of jewellery. You must always verify this code from the BIS website to ensure its purity.

Impact of GST on Gold in Kumbakonam

It must be noted that prices of gold which you see on online platforms, are exclusive of GST. The rates of gold in Kumbakonam increase due to the application of GST provisions on it. When you buy gold in Kumbakonam, you have to pay 3% as GST charges and 5% GST for making jewellery pieces.

Understanding the Demand for Gold in Kumbakonam

Kumbakonam has various industries producing brass, copper, bronze, etc. This city also demands gold in various sectors in the form of bars, coins, reserves, and so on. The rise in the demand for gold has helped the city to grow its economy. 

Gold is considered to be a useful metal in pharma and electronics. Domestic consumers also prefer to buy gold for investment and saving purposes. Therefore it will always remain in demand throughout the year in Kumbakonam.

Some Interesting Facts on Gold and Gold Rates in Kumbakonam

• If you get a feeling of sensitivity or itchiness from your gold jewellery purchased in Kumbakonam, it means that your gold is not pure.
• Gold is one of the oldest metals, and 75% of gold was extracted 100 years ago.
• The largest gold bar in the world weighs 250 kg.
• In ancient times, gold was also found in water. Therefore, Greeks believed that gold was an amalgamation of water and sunlight.
• It is believed that 80% of the gold available on the Earth is still not mined and extracted.