Kolkata’s bustling markets, rich culture, and strong economy make it a gold trading hub. Gold, one of the most traded precious metals, fluctuates in value. Thus, gold buyers and sellers must stay updated on current gold rates.
Whether you’re a seasoned investor or a first-time buyer, knowing the Kolkata gold rate can help you invest wisely. This article will examine Kolkata’s gold prices, the factors affecting them, and their future.
Current Scenario of Gold Investment in Kolkata
Gold has always been a preferred investment option for individuals in Kolkata due to its historical significance and cultural value.
The precious metal has been revered for centuries in this city, and it continues to hold a special place in the hearts of Kolkata’s people. As of today, the 22-carat and 24-carat gold price in Kolkata is fluctuating due to the ongoing economic conditions.
Investors in Kolkata can keep a keen eye on the current gold rate to make informed investment decisions. Understanding the market trends, as well as factors that influence gold prices, can assist investors in making wise investment choices.
Factors such as inflation, currency fluctuations, political stability, and global demand and supply can all impact gold prices. Furthermore, today’s gold prices in Kolkata can be influenced by global events such as the pandemic and the economic policies of major nations.
Keeping an eye on these events and their potential impact on gold prices can be beneficial to investors.
Today’s Gold Rate in Kolkata
The gold rate in Kolkata is highly volatile and changes on a daily basis. Here is the snapshot of the gold prices in Kolkata over the last 10 days as of 30 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
In addition to physical gold, there are several other ways to invest in gold, including:
- 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.
- 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 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.
- Gold savings schemes: Jewellers offer these to allow investors to buy gold jewellery monthly. These schemes can help slow accumulators.
Factors Affecting Prices of Gold
Gold rates in Kolkata are affected by many factors and can change daily. Gold prices in Kolkata are affected by global demand and supply, currency exchange rates, inflation, geopolitical events, and government policies on gold import and export.
1. Global Demand
Global demand and supply play a significant role in determining gold prices in Kolkata. When global demand for gold is high, prices tend to increase, and when supply is high, prices tend to decrease. This demand and supply can be influenced by various factors, such as economic conditions in major gold-consuming countries, the performance of the global economy, and the behaviour of major central banks.
2. Currency Exchange Rates
Currency exchange rates are also a crucial factor in determining gold prices in Kolkata. Since gold is globally traded in US dollars, fluctuations in the exchange rates between the Indian Rupee and the US Dollar can directly impact the price of gold in Kolkata.
3. Geopolitical Events
Geopolitical events such as wars, political instability, and natural disasters can also have a significant impact on gold prices in India, vis-à-vis Kolkata. During times of geopolitical turmoil, investors may seek refuge in gold, which can drive up the demand and result in an increase in gold prices.
Taxation on Gold
In Kolkata, 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 Kolkata, 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. Due to their decentralized, digital nature and widespread use, cryptocurrencies provide a new opportunity for speculative investing.
- 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 pool money from various investors to invest in diversified assets like stocks, bonds, and other securities. They offer professional management, risk diversification, and a range of options to suit different risk profiles and investment goals.
As mentioned afore, the gold rate in Kolkata can be influenced by various factors, including global demand and supply, currency exchange rates, inflation rates, geopolitical events, and government policies related to gold import and export.
Keeping track of these factors can help investors make informed decisions about their gold investments in Kolkata. As of today, the gold rate in Kolkata is ₹ 60,320 (10g of 24 karats).
Q: How does the price of gold in Kolkata fluctuate based on its purity?
The price of the metal in Kolkata is influenced by the quality of the gold, which is measured in karats. Although 22-karat, 18-karat, and other lesser-karat gold are less pure and less expensive, 24-karat gold is the purest kind available. Always check the gold’s purity before investing.
Q: How can I be certain that the gold in Kolkata is high-quality and genuine?
Before buying gold in Kolkata, make sure the hallmark is certified by the Bureau of Indian Standards (BIS). A BIS hallmark guarantees the quality and purity of the gold, protecting your investment.
Q; Are there taxes on the buying of gold in Kolkata?
Absolutely. Gold purchases in Kolkata are subject to the Goods and Services Tax (GST). The current GST rate for gold is 3% on the metal’s value plus an additional 5% for costs associated with the making charges of the jewellery.