Coimbatore is a bustling industrial city located in the southern Indian state of Tamil Nadu. Possessing a rich history of gold trading, the city’s local gold market is a hub for gold buyers and sellers from all over the region. Thus, the rate of gold in the city of Coimbatore is of major significance.
So, let’s check out what’s the prevailing gold rate in Coimbatore and the factors that affect it.
Current Scenario of Gold Investment in Coimbatore
Even in 2023, with gold prices in Coimbatore shooting up, it continues to remain a popular choice among investors in the region. The city is known for its rich cultural heritage and thriving economy, which has led to significant demand for gold.
In Coimbatore, investing in gold has been considered a safe and stable option for many years. But that’s mainly because it is a reliable hedge against inflation and a store of value.
Investors in Coimbatore choose from a variety of gold investment options, including physical gold in the form of jewellery or coins, gold ETFs, and gold mutual funds.
With its well-established gold market and a plethora of options available, the city is an excellent destination for those looking to invest in gold.
Today’s Gold Rate in Coimbatore
The following table presents the rate of pure (24k) and standard (22k) gold in Coimbatore over the past 10 days as of 25th March 2023:
|Date||Pure (24k) 1 gm||Pure (24k) 10 gm||Pure (22k) 1 gm||Pure (22k) 10 gm||Change in percentage|
Factors Affecting Gold Rate in Coimbatore
In Coimbatore, the price of gold is determined by a variety of unique factors:
- Local Demand: The city has a large population of wealthy individuals who view gold as a symbol of status and wealth. It is also an essential part of traditions and is often purchased for weddings, festivals, and other celebrations. As a result, the demand for gold in Coimbatore is consistently high, which can drive up the price of gold in the local market.
- Customs and Traditions: The local customs and traditions of Coimbatore also play a significant role in determining the price of gold. For example, during the annual Akshaya Tritiya festival, which is considered an auspicious time to buy gold, the demand for gold in the city typically surges.
- Availability: While there are a few local gold mines in the state of Tamil Nadu, the majority of gold sold in Coimbatore is imported from other regions. So any disruption in the supply chain impacts the availability of gold in the local market and leads to fluctuations in the price.
Which Taxes Influence the Gold Rate in Coimbatore?
Taxes play a crucial role in influencing the gold rate in Coimbatore.
First off, customs duty is imposed on the import of gold into India. When that is high, the cost of importing gold goes up, leading to an increase in the price of gold in Coimbatore.
Similarly, excise duty is levied on the manufacture of gold jewellery in India. When the excise duty is high, the cost of making gold jewellery goes up, and this can also lead to an increase in the price of gold in Coimbatore.
Finally, VAT is levied on the sale of gold jewellery in India. Likewise, when the rate of VAT is high, the final price of gold jewellery also goes up, causing the gold rate in Coimbatore to shoot up.
Alternative Investment Options for Physical Gold
Along with the centuries-old physical form of gold, there are several investment options available for gold in Coimbatore that can provide investors with a range of benefits. For instance:
- Digital Gold: Digital gold serves as a convenient substitute for physical gold, removing the need for physical storage. By purchasing digital gold online, the seller stores it securely on your behalf, and you have the option to exchange it for physical gold at any time.
- Gold Exchange Traded Funds (ETFs): Gold ETFs are an investment option that provides exposure to the price of gold without actually owning it physically. These funds invest in gold bullion and trade on the stock exchange, making them an easy and convenient way to invest in gold.
- Sovereign Gold Bonds: Sovereign Gold Bonds are a government-backed investment option that provides investors with an opportunity to earn interest on their gold holdings. They are issued by the Central Bank of India and are available in different tranches throughout the year.
Alternatives to Gold Investment
Here are five alternatives to a gold investment you can opt for to generate good returns:
- Stock Market Investment: Invest in the stock market through a reliable brokerage firm. Investing in stocks of good companies that show potential for growth can yield high returns in the long run.
- Mutual Funds: These are professionally managed investment funds that pool money from multiple investors. They offer a diversified investment portfolio and have the potential for higher returns.
- Real Estate Investment: Invest in real estate by buying property or investing in a real estate investment trust (REIT). This can provide steady rental income and capital appreciation over time.
- Fixed Deposits: Fixed deposits offered by banks are low-risk investment tools that offer a fixed interest rate for a specified period of time.
- Government Securities: Securities issued by the government, such as bonds, are also considered to be safe investment options. They offer a fixed interest rate and guaranteed returns.
Q. Why do gold rates keep fluctuating in Coimbatore?
Ans. Many factors contribute to the fluctuation of gold rates in Coimbatore. But mainly, it’s the level of production by local gold mining companies that affect the demand and, thus, the price of the metal in the city.
Q. What to check before buying gold in Coimbatore?
Ans. Before purchasing gold in Coimbatore, you should look for the hallmark to ensure the gold is of high quality.
Q. Does GST impact the gold rate in Coimbatore?
Ans. Yes, GST affects the rate of gold in Coimbatore.
Q. How to check the purity of gold in Coimbatore?
Ans. To check the purity of gold in Coimbatore, look for a hallmark or BIS stamp in the jewellery or simply take it to a gold testing service centre.
Q. Which is purer – 22K or 24K gold?
Ans. 24K is purer than 22K as it contains 99.9% gold as compared to 91% gold in the latter.