Kerala, a lush, coastal paradise in southern India, boasts a rich cultural heritage and an enduring love affair with gold. With its traditional significance and unwavering demand, the “Kerala Gold Rate Today” is a topic of great interest to residents and visitors alike.
As a vital component of social ceremonies and a trusted investment option, gold remains an essential aspect of Kerala’s vibrant economic landscape.
Dive into the dynamic world of gold investments in Kerala, where we’ll explore various investment avenues, factors influencing gold prices, taxation, and alternative investment options.
Current Scenario of Gold Investment in Kerala
Gold is a popular investment in Kerala, India’s southwestern state. Kerala has traditionally valued gold as a safe investment and a symbol of wealth and prosperity.
One of the most popular ways to invest in gold in Kerala is by purchasing physical gold in the form of jewellery, coins or bars. Gold jewellery is particularly popular and often bought for special occasions such as weddings and festivals.
Apart from physical gold, there are other investment options available such as gold ETFs (Exchange Traded Funds) and sovereign gold bonds issued by the government of India. These options allow investors to invest in gold without having to hold the metal physically.
Additionally, investing in gold can provide a hedge against inflation and currency fluctuations. However, it’s important to note that gold prices can be volatile and investing in gold carries risks like any other investment.
Today’s Gold Rate in Kerala
The gold rate in Kerala is highly volatile and changes on a daily basis. Here is the snapshot of the gold prices in Kerala over the past 10 days as of 29 March 2023:
|Date||Pure (24k) 1 gm||Pure (24k) 10 gm||Pure (22k) 1 gm||Pure (22k) 10 gm||Change in percentage|
Alternatives to Physical Gold
As mentioned briefly afore, here are several other alternatives to invest in gold, apart from physical gold:
- Gold ETFs: These gold-tracking exchange-traded funds can be traded on stock exchanges like other securities. Investors can buy gold ETFs without holding the metal.
- Gold mutual funds: These mutual funds invest in gold mining companies, not gold. These funds let investors invest in gold through mining companies.
- Gold futures and options: Without owning gold, investors can speculate on its price with futures and options contracts. Experienced, risk-tolerant investors should consider this investment.
- Sovereign gold bonds: These paper gold investments are issued by the Indian government. Sovereign gold bonds pay interest and can be redeemed for cash or gold.
- Gold savings schemes: Jewellers offer these to allow investors to buy gold jewellery monthly. These schemes are ideal for slow accumulators.
Factors Affecting Prices of Gold
Kerela’s current gold rates, like everywhere else, are influenced by demand and supply factors, including:
1. International Gold Prices
The price of gold in Kerala is heavily influenced by international market prices, which are determined by the demand and supply of gold globally. International events such as economic crises, geopolitical tensions, and changes in interest rates can have a significant impact on global gold prices.
2. USD/INR Exchange Rate
Today’s gold rate in Kerala can be affected by the strength of the Indian rupee relative to the US dollar. Gold prices are quoted in US dollars; therefore, when the rupee strengthens relative to the dollar, gold prices fall, and when the rupee weakens relative to the dollar, gold prices rise.
3. Local Demand
Throughout history, gold has played a significant role in the social and cultural practices prevalent in Kerala. Thus, it’s no surprise that the state has a reputation for being a gold consumer. Gold prices in Kerala may rise during times of high demand, such as holidays, weddings, and other celebrations.
3. Import Duties and Taxes
Gold prices in Kerala are also affected by the government’s import levies and taxes on precious metals. Gold prices may rise in response to higher taxes and fall in response to reduced taxes.
4. Availability of Gold
The availability of gold in the market can also impact gold rates in Kerala. If the supply of gold is limited, the prices can go up, and if the supply is abundant, the prices can go down.
Taxation on Gold
In Kerala, the taxation on gold depends on the form in which it is held. Here’s a brief overview:
- Physical gold: When purchasing physical gold in Kerala, there is no sales tax or VAT (Value Added Tax) on gold jewellery. However, currently, GST is applied to gold at a rate of 3%, plus 5% for jewellery charges.
- Gold ETFs: When selling gold ETFs, capital gains tax is applicable based on the holding period. Short-term capital gains tax (holding period of less than 36 months) is charged at the investor’s income tax rate, while long-term capital gains tax (holding period of more than 36 months) is charged at 20% with indexation benefits.
- Sovereign gold bonds: Capital gains tax is applicable on sovereign gold bonds as well. Long-term capital gains tax on sovereign gold bonds held for more than three years is charged at 20% with indexation benefits. Interest income from sovereign gold bonds is taxed as per the investor’s income tax slab.
For advice on their specific tax situation, investors should speak with a tax professional or financial advisor.
Alternatives to Gold
Alternatives to gold investments provide investors with opportunities to diversify their portfolios and reduce risk exposure.
- Equity Investments: Stocks and ETFs, which are equity assets, may be used as a substitute for gold.
- Fixed Income Instruments: Compared to gold, fixed-income investments like CDs, FDIC-insured bank deposits, and government securities provide good returns and more safety.
- Real Estate: Rental income and long-term price increases are two potential benefits of investing in real estate. You may add variety to your portfolio by investing in real estate either directly or via REITs (Real Estate Investment Trusts) or real estate-focused mutual funds.
- Cryptocurrencies: Bitcoin and Ethereum, two cryptocurrencies, have recently emerged as possible substitutes for more conventional assets, such as gold.
- Commodities: Investing in other commodities, such as silver, platinum, or agricultural products, can diversify your portfolio and act as a hedge against inflation, similar to gold.
- Mutual Funds: Mutual funds offer professional management and pool money from various investors to invest in diversified assets like stocks, bonds, and other securities.
Therefore, the gold rate in Kerala today is determined by several factors, including international market prices, taxes, and local demand.
Presently, the current gold rate in Kerala may increase during market uncertainty and volatility, as it is often seen as a safe-haven asset.
Q: How does the purity of gold affect its price in Kerala?
Gold prices in Kerala vary depending on its purity, measured in karats. 24-karat gold is the purest form, while 22-karat, 18-karat, and other lower-karat gold have lesser purity and lower prices. Always check the gold’s purity before investing.
Q: Are there any taxes on gold purchases in Kerala?
Yes, gold purchases in Kerala are subject to the Goods and Services Tax (GST). The current GST rate on gold is 3% on the value of the metal, plus an additional 5% on the making charges for jewellery.
Q: How do I ensure the quality and authenticity of gold in Kerala?
When buying gold in Kerala, look for hallmark certification from the Bureau of Indian Standards (BIS). A BIS hallmark certifies the gold’s purity and assures its quality, safeguarding your investment.