Gold has always been an integral part of the Indian culture and festivities - from weddings to festivals, gold ornaments have always been used to signify luck and prosperity since the ancient days. We even have a festival - Akshaya Tritiya - which signifies an auspicious time to buy gold; that is how deeply ingrained gold is within our culture. However, in the recent years, a new type of gold buyer has emerged out of India - the prudent investor. Considering that gold has a high propensity to appreciate over the long term, a lot of investors have been diversifying their portfolios into gold. It helps that gold is viewed as a hedge against market volatility; when the economic markets see a downturn, gold prices usually rise as people migrate to a relatively safer commodity. In any case, you have to be abreast of the latest gold prices before buying it - gold prices are affected by demand and supply, whether you are an investor or are interested in gold ornaments.

The past months have been a bit of a roller coaster for the gold prices in the market - the COVID 19-induced fall in economic markets and the subsequent recovery all played a part in affecting gold prices, making it fluctuate between a comparatively large range. However, gold price has managed to rise back up and even cross the 50K mark in just four months. Though gold prices keep increasing, the market is still volatile, and each day is different from before. Read on to learn more about 1 gram gold rate in India today and how it changes.

1 Gram gold rate today

The standard gold rate changes every day, but as of 30 March 2021, 1 gram gold rate in India today (Standard gold- 22 K) is Rs. 4298, which saw a decrease of Re. 1 from the prices of the day before, while 1 gram gold (pure gold- 24 K) costs Rs. 4398, which also saw a decrease of Re. 1 from the previous day prices.

1 gram gold rate in major Indian cities

The 1 gram gold rate in India today is different in various places of the country. For example, on 30th March 2021, 1 gram gold in Chennai is Rs. 4224 for 22 K gold and Rs. 4608 for 24 K gold, while the 1 gram gold price in Mumbai is Rs. 4298 for 22 K gold and Rs. 4398 for 24 K gold. Therefore, when planning on purchasing gold from your place, make sure the prices of 1 gram gold you checked are for your city or state.

916 Gold rate trends in 2021 in India

As of 2021, gold prices reached its peak in January when 1 gram gold cost about Rs. 5035. The lowest was seen in March 2021, in which 1 gram gold prices were Rs. 4298.

916 gold rate trends in 2020 in India

The year 2020 was a roller coaster for gold prices in the country due to the lockdown and the post lockdown periods. The highest 2020 saw in 1 gram gold rates was in August 2020- when the prices reached their peak of Rs. 5450. The lowest prices were seen at the beginning of the year when Corona started to show its rise in China. The lowest cost was in January 2020 when 1 gram gold prices went as low as Rs. 3820, and over the next two months, it saw an increase of only around Rs. 1000 from January.

Why do gold rates vary in different cities in India?

1 gram gold rate in India today vary in various cities because of the following reasons:

1. Hauling costs

Every product in the market has a transportation cost that is added to its selling price, which is the same for gold. Therefore, depending on the city and state, transportation costs would be different, and those costs would reflect the gold prices.

2. Purchase price

A jeweller could choose to sell gold at higher rates if it was purchased earlier when the price of 1 gram gold was low.

3. Volume play

Variations in 1 gram gold prices are seen in various cities and states when discounts are provided for bulk purchases. Due to this, 1 gram gold rates in some places tend to be higher than the others in India.

4. Local association

Local associations are present in every state and city with a limited say in setting the price of gold on a specific day.

5. Taxes

Taxes on gold in each state may vary across the country. This is one of the first reasons why 1 gram gold rate in India today is different in each state.

6. Carriage

1 gram gold rates can vary in various cities since gold imports at port cities are higher than in other cities.

How is the 1 gram gold rate in India today determined?

Gold rates do not simply change when an individual wants them to. There are a few factors that determine the price of 1 gram of gold in the country. The 1 gram gold rate in India today is subject to change based on fluctuations in the market.

1. Dollar dynamics

1 gram gold rates depend heavily on the current factor of the North American dollar. These rates are inversely proportional to USD, meaning that if the dollar goes up, the prices of 1 gram gold in the country are likely to go down, while if the USD goes down, gold prices are reasonable to increase. The US dollar plays a vital role in the gold rates in the country because central banks that maintain the USD tend to hedge the risk of devaluation of USD because of increasing gold investments. Any indirect or direct changes to the dollar will most probably lead to changes in the 1 gram gold prices in India. India buys gold from the United States of America, so when the USD is high compared to the Indian rupees, purchasing prices will become expensive.

2. Production costs

1 gram gold rates in India would increase if the companies that mine gold increase their production costs.

3. Supply

Gold supply is not constant in India, and it changes drastically every day. When supply is less in the country, people will have to manage the quantity of gold already present. This means that when the supply of gold becomes less, the prices of 1 gram gold would increase.

4. International relations

Tense geopolitical relations between countries can impact the prices of 1 gram gold since this might affect the supply of gold, eventually leading to an increase in prices. Therefore, global relations play an essential role in determining its costs.

5. Increasing demand

A massive imbalance of the demand and supply ratio can cause the gold prices in India to increase. This can be seen clearly during festivals, wedding seasons, and other essential ceremonies; 1 gram gold prices increase since many people purchase gold.

6. Gold reserve measure

Central banks of most countries reserve this metal for future use. The Reserve Bank of India reserves gold, too, but when they get more gold for their reserves, the prices of 1 gram gold are likely to increase.

7. Inflation

Gold is primarily seen as a weapon against inflation, but when the inflation goes on an upward track, the 1 gram gold rate also sees a considerable increase.

8. Low-interest rates on FD

People see FDs in banks as another excellent investment option in the country. However, when the FD interest rates decrease, people will prefer switching to gold as an investment option, increasing its demand and hence, the prices.

9. Economic instability

1 gram gold prices usually increase when there are financial instabilities since it can devalue other assets because it is valuable even during distress. Therefore, when there is economic instability, people will always purchase gold instead of buying other risky assets as investments.

Why is the gold rate increasing in India?

Several factors determine the 1 gram gold rates in India, including the following:

1. Influence of USD

USD plays a massive role in determining the 1 gram gold rate in India today; when the USD goes down, the gold price increases in India.

2. Demand and Supply

Demand for gold is one of the biggest reasons why 1 gram gold rates in India today increase. If the supply for gold is not constant, the rate of gold only keeps rising.

3. Instability of Reserve Bank

Monetary instability situations like demonetisation make this metal a non-risky asset. Therefore, gold can become a precious asset in such cases, increasing its demand and hence the prices.

4. Government taxes

1 gram gold prices rise when there is an increase in the tax rate on gold.

Why is gold a good investment option?

Gold has always been a great investment option in the country because of its globally recognised value. Anything created from gold is considered worthy because it attracts thousands of gold buyers each day in India.

A few reasons why gold can make a fantastic investment option are:

1. Value

The value of gold remains the same over the years. Even though the 1 gram gold rate in India today would be different from yesterday and tomorrow, the value of gold in the long-run would still stay the same. This is one of the reasons why gold is considered to be a good investment option.

2. Liquidity

Gold can easily be converted to money no matter where you are and when you plan on doing it. It protects the investor during times of distress and emergencies.

3. Hedge against inflation

When inflation increases in the country, the 1 gram gold price would also increase. Therefore, even during times of distress, investing in gold is considered the best than in other risky assets.

4. Diversified portfolio

Including this metal in your investment portfolio decreases overall investment risks. Since currency values and the stock market are inversely proportional to the 1 gram gold rate, it becomes a good investment option.

5. Versatile metal

Gold can be melted to create various other items like jewellery, bars, coins, electronics, fabrics, and more. Therefore, when there is an increase in demand for these other products, the value of gold is more likely to increase.

6. Tradition

In India, presenting somebody gold is like providing them financial stability, indirectly wishing them good financial luck. For this reason, the tradition of offering gold has been around for centuries in the country.

Various gold options present in India

Gold is one of the most preferred options in India, and there are so many other gold investment options that are likely to give you high returns. These include:

1. Gold jewellery

Getting jewellery made from gold is one of the most preferred options and is widely used by Indians all over the country since people can wear it when necessary instead of keeping it simply in safes. Though, the return cost could sometimes be lower since purchasing costs might include making charges that are not considered in the selling costs, it is still worth it because the gold you get can be used for years. However, make sure that the gold jewellery you get are from trusted and popular jewellers like Candere to ensure that the quality of your jewellery is not compromised anywhere.

2. Gold coins and bars

Gold bars and coins have always promised high returns since this does not involve any making charges. However, when investing in gold bars and coins, one has to be careful since buying it from jewellers you do not trust can turn out to be bogus. Therefore, if you plan on purchasing gold, it is best to go straight to trusted jewellery stores like Candere.

If you plan on purchasing gold bars and coins only as an investment option, then it is best to purchase 24 K gold coins and bars. But when you wish to convert your gold bars later into jewellery of your favourite designs, then go for 22 K gold. The advantage of 22 K gold bars and coins is that you can easily convert it into jewellery, into designs you love, for special occasions. The overall cost might also be lesser this way. Moreover, it is best to purchase gold coins and bars bought from Candere since these can be exchanged later as well.

Things to check before purchasing gold in India 1. Cost per gram

When getting gold, always check for the rate per gram since it provides you with a fair idea of the current price of gold in the market. 1 gram gold rates change every day, and the best way to get the prices are by checking from a trustworthy source.

2. BIS certification

The BIS certification is a way to provide people with a guarantee of the quality of gold they purchase. There are so many BIS hallmark jewellery showrooms in India that ensure that the gold you are buying is authentic and meets quality standards. It is essential to check for this certification when purchasing gold.

3. Gold purity

There are a few different purity levels that can be purchased from the market, which can significantly impact the 1 gram gold price. For example, 24 K gold will be more expensive when compared to 22 K, while 22 K will cost more when compared to 18 K.

4. Making charges

Making charges, in simple terms, means the labour charges that were required to make a particular piece of jewellery. When purchasing gold jewellery, making charges will be incorporated in the overall bill. If you do not purchase it from trusted sources, you might end up paying higher than the standard rate. Therefore, before purchasing any gold jewellery, ensure that you purchase from trusted jewellers who will definitely offer you the standard rates.

5. Buyback

Many jewellery stores in the country offer various buyback options using which the people can exchange their old gold jewellery to purchase new pieces. Though the value of gold would stay the same, it is best to know your buyback options to avoid any complications in the future.

6. Artificial and machine ornaments

Many jewellery pieces are created with the help of machines which would cost less when compared to jewellery pieces made by hand. Therefore, when purchasing gold jewellery, make sure you are not paying extra for machine-made jewellery pieces.

7. Get the bill

To ensure that the gold purchasing process is completely transparent, it is best to ask for the bill in the end. In case you wish to sell the gold you bought, in the future, the bill can become very useful and can help you in case of any discrepancies.

Once you have researched well about your options before getting gold, ensure you keep it safe. The best opportunity to store gold in the country is in a bank- simply rent a locker if it is not electronic gold. The only disadvantage of this is that you will have to plan to access it when you want to wear the jewellery for an occasion. Since 1 gram gold rates change every day in India, ensure you get your information from trusted sources before making any decisions!