Gold Rate Today in Thoothukudi

Thoothukkudi is one of 38 districts in Tamil Nadu. It is also the largest city and the headquarters of the district. The city is famous for its fishing business, and the pearls found offshore. Because of the port, it’s well connected with international and domestic trade.

The city hosts many businesses and high-net-worth individuals who see gold as a significant investment. This factor makes way for a steady demand for gold in the city. Moreover, Thoothukkudi sees a slightly increased demand for gold during the wedding and festival season.

Multiple factors, including Demand and supply, inflation, and international forces affect gold rates in Thoothukkudi.

Also, the presence of numerous big businesses contributes to slightly increased prices in the form of making charges or other additional charges.

Local people are inclined to purchase physical gold, but the elite prefers diversifying their gold portfolio.

There is a lot to be discussed about gold rates in Thoothukkudi, but if you plan to buy gold today, you must understand the current prices. Let’s explore them first.

Comparison Between 24K and 22K Gold in Thoothukkudi

The purity of gold is determined in karats (k), whereas carats are used for precious and semi-precious stones). Since gold is a very soft metal, it is often alloyed with other metals, such as copper and silver, to make it durable and strong enough to make into jewellery.

When it comes to karats, there are 10, 12, 14, 16, 18, 22, and 24 karats of gold, mostly available in the market. The higher the karatage, the lower the amount of gold in the alloy.

For instance, 18 karats gold will be stronger but less pure than 24 karats gold, which will be softer but purer. Non and semi-precious jewellery is often made from 10-18-karat gold.

Please note that when it comes to investment, 24-karat gold is best in Thoothukkudi because it's pure, whereas 22-karat gold is excellent for jewellery because it includes other metals that make the gold harder and allows for delicate craftsmanship. 

Some other comparisons include:

1. 24k includes 99.9% of gold, but 22k only includes 91.67% of gold.
2. 24k gold is used in electrical devices because of its purity, but 22k gold is only used to make jewellery and coins.
3. 24k gold is softer and easily bends upon applying a little pressure, but other metals in 22 karat gold make it hard and durable.

How is the Purity of Gold Evaluated in Thoothukkudi?

Gold is a precious metal that is valuable only when it’s pure. Investing in gold is a major thing for any individual, and getting duped is probably the worst nightmare.

However, by performing certain checks, you can identify the purity of the gold in Thoothukkudi:

1. Hallmark or BIS logo

BIS is a government agency that hallmarks gold to ensure its purity. You can easily find it behind gold jewellery. Please make sure to check that it’s there before purchasing. Some jewellers use in-house marks that the government doesn’t verify. Beware of that, especially if purchasing from an unknown shop. 

2. Karat  

24-karat gold is too soft to give shape. It’s usually available in the form of gold bars. 22-karat gold, on the other hand, is used to make jewellery; it includes 91.6 g of pure gold per 100 grammes. 

3. Jewellers mark

BIS provides a list of certified jewellers who put BIS marks on every piece of jewellery. Check with trusted jewellers before purchasing gold in Thoothukkudi.

Gold vs Other Investment Options in Thoothukkudi

Gold is considered the safest investment because it’s directly related to inflation. Gold prices also shoot up with the rising prices of other commodities. 

However, other investment options are also worth considering in Thoothukkudi, and you may get a better return on investment:

1. Gold vs mutual funds

Equity mutual funds provide better returns than gold in the long term. You can invest in mutual funds through a SIP; it’s the best option and delivers higher returns than gold.

 2. Gold vs real estate

Real estate also delivers a better return than gold without much volatility. But it’s expensive and not for everyone. Also, it would be a great idea to diversify your portfolio rather than be restricted to only one type of investment.

3. Gold vs Bitcoin

Bitcoin is a digital age investment option known as "digital gold." Bitcoin gave investors around 111.7% returns in the last five years, but gold was restricted to 11%. However, Bitcoin is extremely volatile, and it is not considered a safe investment option.

Factors That Influence the Price of Gold in Thoothukkudi

Thoothukkudi is a port city and is well-connected to domestic and international trade. All factors that affect global gold prices apply in the city too. 

Here are some major reasons responsible for everyday price fluctuations:

1. Inflation

Gold is directly related to the currency. When inflation shoots up, the demand for gold also grows, which increased the price. Most people prefer to hold gold instead of currency. With increased demand, the prices of gold also grew in Thoothukkudi. 

2. Global movement

India imports most of its gold. The rise and fall in import duties, transportation charges, and government taxes directly impact prices for the entire nation. It affects Thoothukkudi as well. 

3. Demand and supply

The simple rule of economics also affects the price of gold in the city. Reduced prices attract more buyers, which significantly increases demand and, therefore, the prices. That is why gold is said to be among the most stable investments. 

4. Market factors

Market factors apply when purchasing physical gold. Making charges, shopkeepers’ profit and other additional charges fluctuate the prices from shop to shop. You might have noticed outlets promoting heavy discounts on gold. They all stopped making charges and profits. 

Impact of GST / Central Bank Policies on the Gold Rate in Thoothukkudi

Gold prices are dynamic, but the taxes are stable. They have a significant impact on the city's prices. Gold is subjected to four types of duties and taxes in Thoothukkudi:

• Customs Duty - 12.5%
• Agriculture Infrastructure and Development Cess (AIDC) - 2.5%
• Social Welfare Surcharge - 10% of Customs Duty
• 3% GST. 

Some Interesting Facts on Gold

Gold is itself a fascinating thing (in fact, it never belonged to the earth, and a huge asteroid is credited with bringing the yellow metal to planet Earth millions of years ago). Still, there are many more interesting facts about it that will leave you stunned:

1. The world doesn’t have enough gold! If all of the ever-mined gold is put together, it will fit into a crate of 21 metres cubed—approximately the size of one big house.
2. Around 49% of the mined gold has been used to make jewellery. It remains the single most extensive use of gold till now.
3. Gold is a highly expandable metal. One ounce of gold can be stretched into a 1.6km long wire.
4. Gold is so malleable that if the world's gold reserves were gathered into a wire that was 5 micrometres thick, it could circle the globe 11.2 million times.
5. Gold is sometimes rarer than a diamond; you can more easily find a 5-carat diamond than a one-ounce nugget of gold in the wild.