Gold Rate Today in Vijayawada

Vijayawada is the second-largest city in the state of Andhra Pradesh. Since the city is a commercial hub, the demand for gold has increased in the last few years. People in Vijayawada prefer buying gold in the form of jewellery. Offering gold jewellery at temples is also a well-known trend in Vijayawada. People make these offerings on special occasions or during temple-related festivals. In Vijayawada, people prefer to invest in gold, mostly in its physical forms, such as by buying gold coins and bars.

The sale of gold in the city increases during the festive and wedding seasons. Like other cities, Vijayawada also witnesses the fluctuation of the gold rate, which is dependent on various local and global influences. Nevertheless, the demand for gold never decreases in the city. 

Continue reading to learn more about gold prices in Vijayawada, the top influencing factors for the gold price, and the factors affecting its volatility. 

Determination of Gold Price in Vijayawada

Different factors contribute to determining the gold price in Vijayawada. 

Some of these significant factors are:

• Duties and government taxes at the local level
• The state government policies
• The sudden high demand for gold leads to an increase in the price
• Increase in interest rate
• Increase in charges while making gold jewellery

Impact of Tax (GST) on Gold Price in Vijayawada

Earlier, different taxes were imposed separately on gold in Vijayawada. Now, only the GST is imposed on gold in Vijayawada.

The imposition of goods and services tax on gold has also increased its price. Before the introduction of GST, the price of gold included a 10% import duty, 1% customs duty, and 1.2% Value tax. 

But after the introduction of GST, the calculator of tax on gold included 3% GST and 12.5% as Custom Duty. Therefore, GST has a significant impact on increasing the price of gold.

Things You Should Remember While Purchasing Gold in Vijayawada

It would help if you remember the following things:

• Check the hallmark of the goods made of gold.
• Invest in gold when the price is lower than the normal days.
• Check the purity of gold by taking the help of a ceramic plate.
• Check the BIS mark certified by the Bureau of Indian Standards.
• Obtain gold only from authorised and reputed banks and jewellery houses in Vijayawada.

Factors Affecting Gold Price in Vijayawada

The gold rate keeps changing due to demand, tax, and other charges. Apart from these, inflation, the festive season, government reserves, geopolitical tensions, and currency fluctuations also affect the gold prices in Vijayawada.

Some of these factors have been described below:

Inflation

Inflation has a significant impact on gold prices in Vijayawada. When inflation increases, it is a known fact that the value of the dollar decreases. This, in turn, impacts gold prices.

Festive Season

During the festive season, the demand for gold increases in Vijayawada, which increases the gold price.

Government Reserves

The country's gold reserves are owned by the Government of India, which trades in and purchases gold through the Reserve Bank of India. Gold prices fluctuate based on the cost and volume of gold that the government exchanges.

Investment in Gold in Vijayawada

People in Vijayawada often invest in gold in its physical form. Investment in gold works as a haven because it is less volatile. 

The best time to invest in gold is when the market is down. Apart from investing in physical gold, people can also invest in other gold investment options. 

Some gold investment options in Vijayawada are:

Mutual Funds

Gold mutual funds are a much-preferred option as mutual fund companies manage the mutual funds you buy. These companies invest in gold ETFs.

Sovereign Gold Bonds (SGBs)

SGBS are government securities that are valued in gold. These are substitutes for having actual gold on hand. Both the issue price and the bond's maturity redemption require payment in cash. Public and private banks both offer the ability to purchase sovereign gold bonds.

Gold Exchange Traded Funds (Gold ETFs)

Gold ETFs are another good investment option. This is more relevant if you don't want to invest in physical gold. It is based on gold price and bullion.

Differences Between 24-Karat and 22-Karat Gold in Vijayawada

Karat (K) is a unit used to measure gold's purity. Since gold is a soft metal, making it malleable enough to mould into jewellery is essential. To do so, goldsmiths add some metal to it to give it body and weight.

Many people need clarification on 24-karat and 22-karat gold. Both have a few differences:

• In 24-Karat, the amount of gold is 99.9%. Whereas 22-Karat gold consists of 91.67%
• 24-Karat gold is brighter than 22-Karat.
• 24-Karat is softer than 22-Karat.
• 24-Karat cannot be used to make jewellery due to its extreme softness. But 22-Karat can be used to make jewellery.

22-karat gold is also known as 916 hallmarked gold. The hallmark ensures that the gold is of high quality. Due to fluctuations in the gold rate, there are always price variations in 22-Karat gold in Vijayawada.

What are KDM and 916 Hallmarked Gold?

KDM refers to the blend of gold and cadmium. In KDM gold jewellery, 8% cadmium is used as solder with 92% gold. But now cadmium is replaced with zinc and copper after the Bureau of Indian Standards (BIS) banned cadmium.

The hallmarked number 916 stands for 22 karats of pure gold. The amount of pure gold in this blend is 91.6%. The hallmark certification ensures that the gold is of high quality. You should check this hallmark before buying gold in Vijayawada so that you can be sure that the gold is pure and certified.