Gold Rate Today in Mysore

Mysore, is one of the most beautiful cities in India, with a rich history rooted in art and culture. It boasts the beautiful Mysore Palace, which houses the famous Golden Throne. Made of solid gold, this throne weighs over 70 kg! It is open for public viewing during the Dasara celebrations at Mysore Palace.

Mysore is the third largest city in Karnataka. It gets the lion’s share of its business from IT and tourism. The heritage of the city draws in millions of tourists every year. The continuous influx provides an incentive to the traditional craft forms in Mysore and boosts the gold demand in the city.

Read ahead to learn about the current rates in the city, the factors that influence the gold rates and the best options for buying gold in Mysore.

How Does GST Impact Gold Rates in Mysore?

There are two separate GST charges on gold that buyers of the precious metal must pay in Mysore. First, a 3% GST is levied on the price of gold. Secondly, the jeweller charges a 5% GST for gold ornaments on the making charges. Making charges refer to the cost of moulding raw gold into jewellery.

Three types of import duties are applicable on gold imports to India - Customs Duty (12.5%), Agriculture and Infra Tax (2.5%), and Social Welfare Surcharge (10% of Customs Duty).

Keep These Tips in Mind Before Purchasing Gold in Mysore

Here are some important pointers to keep in mind when making a physical gold purchase:

• Purity: There are two measures of how pure gold is, the Karat and the fineness. The cost of gold can vary depending on its purity. Therefore, you should only buy gold jewellery after confirming its purity.
• Hallmarking: Checking for hallmarks is important when purchasing gold in the form of bullion. Likewise, gold jewellery and currency must be hallmarked so buyers can verify the metal's authenticity. The Bureau of Indian Standards has introduced this standard which helps those purchasing gold.
• Making Charges
  This is included in the cost of any gold jewellery you purchase. Making fees may be calculated as a flat rate per gram of gold, or as a percentage of the total jewellery weight, at the discretion of the jeweller.

Investment Options for Gold in Mysore

Gold is trendy in Mysore. However, it should be noted that the popularity is in terms of gold jewellery or gold ornaments, not gold investments.

The concept of gold as a form of investment is still novel among many people. The fact that you can buy gold digitally or invest in a gold exchange-traded fund (ETF) is not as well-known as the value of gold ornaments. Most people would still opt for physical gold — be it gold coins or gold jewellery — to hold it as an investment asset.

There are several different options available for gold investments in Mysore -

1. Digital gold
2. Gold mutual funds
3. Gold ETFs
4. Sovereign gold bonds
5. Gold saving schemes

Understanding 916 Hallmarked Gold Prices in Mysore

916 hallmarked gold refers to 22-karat gold since 22-karat gold is 91.6% pure by volume.

In terms of investment, 24-karat gold is more popular. But when it comes to making jewellery, 22-karat gold is preferred. The trace metals in the alloy add to the gold's strength and durability and make it easier to mould into ornaments.

The 916 hallmark is provided by the Bureau of Indian Standards (BIS), which authenticates the gold's purity.

24K and 22K Gold: A Comparative Analysis

Gold in Mysore is typically available in the standard 22K and 24K variants. 

Here are more details about 22-k and 24k gold metals: 

• 24-karat gold is the purest form of gold, with 99.99% pure gold. As 100% gold is too brittle to hold a shape, 99.99% gold is the purest form of gold available commercially. However, 24-karat is too delicate to be used to create jewellery designs. That’s why 24-k gold is mostly used to create gold coins/biscuits/bars. 
  You can be sure your gold coin has 99.99% pure gold by checking the BIS (Bureau of Indian Standards) hallmark stamped on it. 24K gold is also used in electronic and medical devices. 
• 22-karat gold is the form of gold used in making gold jewellery. This purity level of gold comes with twenty-two parts of pure gold and two parts of other metals (including zinc, copper, etc.). 
  As 22-karat gold has 91.67% pure gold, it is also called “916 gold” or “916 purity.” If you want to know whether the gold jewellery you are buying in Mysore is 22K, you should check the 22-karat BIS hallmark on it. 22-karat gold is less expensive than 24-karat gold.

Factors Affecting Gold Prices in Mysore

1. Inflation: Inflation eats into the value of money. Because there is a consistent increase in the average price level, the real value of money falls. At times like this, it is ideal for storing your savings in forms other than cash. Gold is the perfect solution. 
   There is a direct relationship between the inflation rate and gold price. If inflation increases, the cost of gold rises, and vice versa. Fluctuations in gold prices often accompany the monetary policy decisions of the Reserve Bank of India (RBI).
2. Seasonal demand: Indians tend to consume a lot of gold during the festive season. There is a higher demand during Dhanteras and Diwali as people rush to mark the auspicious occasions with gold purchases. 
   The interaction between demand and supply influences the price of any commodity. As the supply of gold is generally constant, any uptick in demand pushes up the average cost of gold.
3. Market volatility: During instability and volatility, people tend to look for safe shelters. If there is any political unrest in the country, or if people expect the stock market to crash, there will be a migration in investor assets towards gold. The demand for gold increases during such times, and so does the price of gold.
   In comparison, when the economy is prospering and there is high production and demand, investors reduce their investments in gold and shift towards asset classes with higher risk exposure.
4. Government policies: Government policies significantly impact most sectors of the country, and gold is no different. The Government of India uses gold as an instrument to control inflation. 
   The government tends to increase interest rates when the inflation rate is on the higher side. People opt for more debt-based investment assets and buy bonds and fixed deposits. Loose cash reduces in the hands of people, and the demand for gold falls. The opposite happens when the government lowers interest rates.
   Thus, the changes in government policies influence the demand for gold and, indirectly, its price.International Market
5. International Market: Since India is a major consumer of gold, any movement in the global price of gold affects its value in the country.
6. Monsoon Season: The rural market generates 60% of the gold demand in India. A good monsoon and favourable crop yield play an essential role in increasing the demand for gold in Mysore. If the monsoon is bad and the crop yield is low, many farmers have to sell their gold to pay their rural loans. 
7. Geopolitical crises: In times of political unrest or geopolitical unrest, investors may also view gold as a safe haven, raising demand for it and its price. Gold is a crisis commodity because it tends to see an increase in demand. In contrast, other asset classes typically see a decline in value during such crises.
8. Rupee-Dollar Impact: Understanding how the rupee-dollar relationship impacts India's gold price is essential. Since most physical gold is imported, gold prices will depreciate when the rupee's value declines against the dollar. Due to the rupee's depreciation, India's demand for gold may be adversely affected.