Indians consume tonnes of gold during wedding seasons, festivals, making India one of the largest importers of gold in the world. Whether it is a wedding or a religious event, no ceremony goes without the usage of gold. Gold is a vital part of Indian culture.
If you are searching for ‘gold rate today in Bangalore 22k’, you probably know that the gold jewellery rates do not remain the same in all cities. What you can get for your gold in Bangalore differs from the price of gold in Delhi. Several factors determine the gold jewellery rate in Bangalore.
How is the gold jewellery rate determined in Bangalore?
The gold rate is highly influenced by the inflation rate (both international and domestic inflation). Whenever inflation rises, the rate of gold rises, the demand for gold increases, and when the demand for gold climbs up, the gold jewellery rate will also shoot up. So, the regular changes in the gold rate in Bangalore are also because of the current inflation.
- Gold reserves
The Reserve Bank of India (RBI) sometimes holds gold reserves for the future. When the RBI decides to hold more gold reserves, the gold jewellery rate will go up. The reason can be attributed to the increased cash flow while the gold supply decreases. So, the gold rate today in Bangalore 22k is affected by the RBI’s gold reserves.
- Jewellery market
The gold jewellery market is dependent on the wedding and festive seasons. For instance, people buy tonnes of gold during Diwali, which significantly improves the gold demand. Also, the demand for gold does not entirely depend on the gold jewellery market. Numerous electronic manufacturing companies buy gold to use in devices, such as smartphones, television, computers, GPS, etc.
The gold jewellery rate fluctuates based on the policy changes in the gold mining companies. For instance, if the gold mining company decides to increase the gold production cost, the gold prices in Bangalore will also rise. So, when the gold production cost increases, so do the gold rate in India.
- State laws
Every state in India has specific rules and regulations that play a crucial factor in determining the gold rate. When gold is imported from other countries, the state imposes certain taxes that impact the final selling price. Besides that, since the gold is transported from other states, there is an additional hauling cost that you will have to bear.
Things you must do before selling your gold for cash
Before selling your unwanted gold to your preferred gold dealer, keep the following things in mind to make an informed decision and get the best deal available:
- Make sure to know the worth of your gold. Visit multiple lenders, weigh your gold jewellery, and gather different rates. This way, you know the exact price you can get.
- Not all gold jewellers offer the same rights. So, it is imperative to compare different jewellers and choose a reliable and reputed one to sell your gold.
- If your gold is not BIS marked, you will need to get it from a reputed gold store in your locality. A hallmarked gold eliminates doubts about the authenticity of the purity of gold.
- While looking for a buyer in the gold market, you must find a legitimate one. You could look into online reviews and testimonials that offer great insight into your lender’s reputation.
- Make sure to keep the purchase invoice of your gold jewellery at the time of selling it. Most reputed gold buyers ask for the purchase invoice, as it cancels out doubts about your gold purity, weight, etc.
- Your offer may contain hidden charges such as processing fees, etc. Make sure to carefully read the fine print of your agreement and ensure to agree with the terms and conditions of your gold buyer before signing any document.
How do gold buyers measure the purity of your gold?
To determine the purity of your gold jewellery, it has to go through a hallmarking process conducted by the Bureau of Indian Standards (BIS). Your gold jewellery’s purity is certified through a BIS hallmarking procedure based on components such as BIS mark, Jeweller’s identification mark, purity (in karat), and the hallmarking center’s identification mark.
Some gold buyers may even use a magnet to determine your gold’s purity before buying it. All gold items before 24k contain a certain amount of metal. When the magnet touches the gold item, it attracts the metal in it. That’s how your gold buyer establishes the exact percentage of the metal content in your gold jewellery.
Ensure to visit only a reputed financial institution to get the correct value of your gold.