Gold Rate Today in Nagercoil

Nagercoil, in Tamil Nadu, lies between the Western Ghats and the beautiful Arabian Sea. Surrounded by paddy fields and hills, Nagercoil was also known as the Granary of Travancore. The city got its name from the Nagaraja Temple, the temple of the serpent king.

South India has a deep cultural connection with gold. Gold plays a key role in southern India as a part of almost every ritual, be it weddings, festivals, or other social functions. Most brides are believed to wear around 100 to 300 grams of gold on the wedding day. Over time, other gold re-investments also gained prominence. It is no surprise that gold is also considered one of the oldest and most traditional forms of investment in Nagarcoil.

In this article, we will look at the gold prices in Nagercoil, investing in digital gold, documentation needed, and much more.

Five Golden Facts About Gold

Indians have an affinity towards gold, either as jewellery or in other forms. Let’s read some interesting facts about gold here:

1. As per records, in March 2022, the Reserve Bank of India (RBI) held 760.42 metric tonnes of gold. Out of this reserve, 295.82 metric tonnes are held domestically, and 453.52 metric tonnes are kept in safe custody with international banks.
2. China, with an annual production of 370 tonnes of gold, is the world’s largest producer and consumer of gold. 
3. Gold is very ductile and malleable. 28.3 grammes of gold can be hammered into a sheet measuring 100 square feet or beaten into a thread 8 kilometres long.
4. 2808 degrees Celsius is the boiling point of gold.
5. A one-ounce nugget of gold is more difficult to locate than a five-carat diamond.

Things to Consider Before Buying Gold Jewellery in Nagercoil

While purchasing gold jewellery in Nagercoil, check the following aspects to avoid making mistakes and ensure the full worth of your investment.

• Hallmark for purity: Never purchase any piece of jewellery in Nagercoil without checking the purity. The Bureau of Indian Standards (BIS) hallmarking system certifies the purity of the metal. Hallmarking was made mandatory by the Indian government in June 2021. This system ensures that the jewellers don’t add other metals to improve profits. 
• Making Charges: Making charges are the labour cost involved in making jewellery. This cost is decided by the seller and varies from store to store. This charge is based on the intricacy of the jewellery design, the time taken, and also the wastage.
• Man-made/machine-made: Machine-made is common when it comes to mass production. The price also varies as the making charge of machine-made jewellery will be cheaper than hand-made ornaments.
• Buy Backs: Ensure your jeweller has a buy-back option. Over time jewellery trends change. In such cases, you can always exchange the old jewellery for a new piece. Even when designs change, the value of gold doesn’t diminish.

Alternatives to Physical Gold and Documents Needed

Gold, in physical forms like coins, jewellery, bars, etc., has been the traditional form of investment. However, today digital gold investments, like gold-related stocks and mutual funds, are the other forms of investment.

• Gold Exchange Traded Funds (ETFs): If you are looking at investing in gold in Nagercoil, you can purchase ETFs online. These are held in digital form, so they don’t need storage space and are safe from theft. For investing in gold ETFs, you will need a brokerage account and a Demat (dematerialised) account.
• Gold Mutual Funds: These mutual funds invest in stocks of gold companies or holding units of gold-related funds. These metal funds are managed by asset management companies and need a Demat account and brokerage account.
• Sovereign Gold Bonds (SGBs): Issued by the Reserve Bank of India, these bonds are substitutes for physical gold. These can be purchased through various banks, post offices, or Sebi-recognised brokers. For investing in SGB, you will need proof of identity and address.
• Gold Savings Schemes: The local jewellery shops in Nagercoil have started gold-saving schemes that you can invest in. For a set period of time, you must make a fixed monthly deposit. You purchase the gold at the net value deposited at the conclusion of the term.

Based on the price of gold at maturity, the conversion is made. These gold savings plans are useful if you don't have a large enough lump sum to buy a lot of gold.

You can invest in physical gold, SGBs, or gold mutual funds and ETFs, depending on your choice. It is recommended to invest after careful market research and taking expert opinion. However, like any other form of investment, gold also carries risks.

What Influences the Gold Rates in Nagercoil?

The various factors that influence gold rates include: 

• Import costs: As most of the gold is imported into India, import rates play a crucial role in gold rates. A 12.5% customs duty is imposed on gold shipments imported into India.
• Government Reserves: Based on its policies, the Government of India can buy or sell gold through the Reserve Bank of India (RBI). This can impact the gold price depending on how much it buys or sells.
• Inflation: Gold’s value is relatively stable compared to currency; hence It is a safe investment choice. It is used to safeguard against inflation. The price of gold rises during inflation because there is a high demand for it at such times.
• Demand and supply: All commodities, including gold, are influenced by demand and supply. Gold prices will rise if the demand for gold exceeds the supply, and they will fall if the supply exceeds the demand.
  As the amount of gold mined yearly may not meet the demand, the supply may be less. Gold is in high demand during the wedding and festive seasons. As a result, gold’s price also rises. 

Interest Rates: The price of gold is also influenced by interest rates. Gold prices decrease when interest rates rise, while they increase when interest rates decline.
Investors invest less money in gold when interest rates are high because they have more opportunities to earn a return on their investment elsewhere. When interest rates are low, investors have fewer opportunities to make money elsewhere, so they put more of their money into gold.