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Gold Price in Kolkata
Kolkata is the third largest metropolitan city in India and is home to over 14 million people. The city is a hub for industries and accounts for a large chunk of all investments made in the country. Gold in India is generally not viewed as an investment opportunity and people typically keep their gold safe at home or convert it into jewelry. This mindset is however changing, and Kolkata which has one of the highest gross domestic product among Indian cities is leading the path. Fluctuating gold rates have not deterred Kolkata residents from buying gold, ensuring that Kolkata accounts for a large percentage of gold transactions in India.
Gold rate in Kolkata depends largely on market fluctuations and availability. Gold buyers can opt for either 22 karat or 24 karat gold, depending on their needs. 22 karat gold is about 92% pure and commands a lower rate than 24 karat gold, which is 99.99% pure.
Investing in gold is considered a profitable option for a large number of middle-class families in Kolkata and hence it is no wonder that the city ranks very high in the list of consumers in the country. A lot of topics relating to the precious metal, however, is often unanswered. So, in this page, we aim to cover every possible topic that relates to gold and gold rate in Kolkata.
Kolkata is home to all major jewelers from across the country and houses some of the best gold stores. One can find gold shops in every major part of the city, with the most popular ones being Reliance Jewels, Tribhuvandas Bhimji Zaveri, DK Basak Jewellers, Anjali Jewellers and Senco Gold. Residents can also opt for the smaller gold shops spread across the city to meet their individual needs.
Trend of Gold Rate in for Kolkata July 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|July 1 Rate||Rs.4,895 per gram|
|July 5 Rate||Rs.4,856 per gram|
|Highest Rate in July||Rs.4,924 per gram on 2 July|
|Lowest Rate in July||Rs.4,856 per gram on 5 July|
July 2020 - Week 1 (01 - 05):
- On Kolkata, the value of gold in the beginning of July was Rs.4,985 per gram on 1 July and showed a declining trend for the week. However, with the rise in COVID-19 cases all over the world, namely the United States of America, the risk appetite amongst investors dipped and shifted towards the bullion market. The value of the metal hit its highest on 2 July at Rs.4,924 per gram.
- On 3 July, the price of the yellow metal dipped to Rs.4,881 per gram with investors shifting away from the bullion market with the United States of America showing positive data along with ongoing reports of a possible COVID-19 vaccine being developed. Due to this, the value of the metal dipped further Rs.4,861 per gram on 4 July as investors awaited on further developments of the economic data.
- The price of the metal on the last day of the week was Rs.4,856 per gram on 5 July recording an overall weekly decline.
Trend of Gold Rate in Kolkata for June 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|June 1 Rate||Rs.4,722 per gram|
|June 30 Rate||Rs.4,895 per gram|
|Highest Rate in June||Rs.4,904 per gram on 25 June|
|Lowest Rate in June||Rs.4,711 per gram on 9 June|
June 2020 - Week 1 (1 - 7):
- The yellow metal opened the month of June at Rs.4,722 per gram in Kolkata. There was an increase of Rs.10 in the rates when compared to what was charged on the final day of the previous month. The opening price was the lowest for the month till date.
- The rates of gold were on the upward trend in the city over the first few days. It was accounted to growing tensions between the United States of America and China, protests in major U.S. cities and investors seeking a hedge against the coronavirus-induced economic fallout. The increase in the rates saw the precious metal record its highest price for the month till date on 5th of June when a gram cost Rs.4,841.
- Having recorded its highest price, the rates declined as stocks jumped. The precious metal closed the opening week of the month at Rs.4,788 per gram. In Kolkata, the rates witnessed a declining trend over the week.
June 2020 - Week 2 (8 - 15):
- Gold prices in Kolkata opened the second week of the month at Rs.4,711 per gram on 9 June and the price of the metal increased on 10 June to Rs.4,732 per gram with investors shifting away from riskier assets and towards the safe-haven metal with the rise of new COVID-19 cases with what was called the second wave of the disease. The price of gold showed a continuous inclining trend in the city, increasing to Rs.4,776 per gram on 11 June with investors awaiting on the U.S. Federal Reserve’s update on the economic data of the United States of America.
- The price of the metal, on 12 June, remained steady at Rs.4,776 per gram with investors still waiting on the update by the U.S. Federal Reserve. With the value of the dollar rising in the international market, the inclining trend of the yellow metal was limited, and the value of the metal remained the same at Rs.4,776 per gram on 13 June.
- On 14 June, the price of gold dipped to Rs.4,746 per gram with risk appetite on an incline again amongst investors and with tensions rising between Washington and Beijing regarding the trade deal, investors shifted back to the bullion market and the metal recorded a marginal incline its prices. At the end of the week, the metal closed at Rs.4,747 per gram and closed with an overall incline in prices.
June 2020 - Week 3 (16 - 21):
- A gram of the 24-karat gold was priced Rs.4,811 at the start of the third week of the month in Kolkata. Compared to the closing price of the previous week, the rates were up considerably. There was an increase of Rs.64 for every gram of the yellow metal.
- Over the next three days, the rates fluctuated in the eastern metropolitan city. Gold was priced at Rs.4,815 per gram on 19th June. The rates jumped in the city on 20th and 21st June as concerns about a second wave of coronavirus infections dented hopes of a quick economic recovery.
- The yellow metal closed the week at Rs.4,866 per gram in Kolkata. This was the highest recorded price of the precious metal for the month of June till date. The rates saw an inclining trend in the city.
June 2020 - Week 4 (22 - 30):
- Gold was priced at Rs.4,867 per gram on 22nd June in Kolkata. Compared to the previous week’s closing price, the rates of the yellow metal were up by Rs.1 in the metropolitan city.
- The rates of the yellow metal climbed to Rs.4,904 per gram on 25th June as investors turn towards the safe-haven metal after increasing coronavirus cases dented hopes of a swift economic recovery. This was the highest recorded price of gold for the month of June in the metropolitan city.
- In Kolkata, the precious metal closed the week at Rs.4,895 per gram. The metal’s overall performance in the city witnessed an inclining trend.
Trend of Gold Rate in Kolkata for May 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|May 1 Rate||Rs.4,681 per gram|
|May 31 Rate||Rs.4,712 per gram|
|Highest Rate in May||Rs.4,811 per gram on 24 May|
|Lowest Rate in May||Rs.4,620 per gram on 9 May|
May 2020 - Week 1 (1 - 9):
- The gold was priced at Rs.4,681 per gram at the start of the month of May in Kolkata. Compared to the closing price of the previous month, the rate for every gram was down by Rs.50.
- Over the next few days, gold price increased in the metropolitan city. The gold recorded its highest price for the month of 4th May after tensions between the United States of America and China increased over the matter of the origin of coronavirus. A gram of the 24-karat gold cost Rs.4,702 in the city on the mentioned date.
- The rate charged for gold slipped in the next couple of days as risk appetite improved amid easing lockdowns and the dollar strengthened. While the rates improved again, gold closed the opening week in the city at Rs.4,620 per gram. This was the lowest recorded price of the gold for the month to date with the overall performance showing a decline in the rates.
May 2020 - Week 2 (10-16):
- The price of gold in Kolkata opened the second week of the month at Rs.4,621 per gram on 10 May and increased marginally to Rs.4,622 per gram on 11 May. The rise in prices was majorly due to the investors shifting away from the equities market with rising fears of fresh cases of COVID-19 being reported all over the world. The price of the metal increased marginally to Rs.4,636 per gram on 12 May.
- On 13 May, the price of gold had increased to Rs.4,674 per gram and increased marginally to Rs.4,675 per gram on 14 May with central banks releasing stimulus packages all over the world to support the economy. With this, the bullion industry was supported with these stimulus packages, resulting in the rise in gold prices.
- Gold prices on 15 May were Rs.4,710 per gram increasing by Rs.35 and further increasing to hit the weekly high at Rs.4,751 per gram on 16 May, closing at the same price. The metal’s prices increased with tensions rising between China and the United States of America. With this, the investors shifted the bullion market amidst uncertainty over the trade deal between the two countries.
May 2020 - Week 3 (17 - 23):
- At the start of the third week of May, gold was priced at Rs.4,801 per gram in Kolkata. There was an increase of Rs.50 in the rates of the yellow metal when compared to the closing price of the previous week.
- The rates increased gradually in the eastern metropolitan city and recorded its highest price for the month on 20th May with a gram costing Rs.4,847. The rates increased as fears of a global recession persisted even though economies reopened.
- On 21st May, gold prices dropped in the city as the rates slipped by 1 percent in the international market as the U.S. dollar firmed and bullion’s safe-haven appeal was dented. The decline in the prices continued for the next day as well before recording a slight increase on the final day of the week. The yellow metal closed the week at Rs.4,791 per gram in Kolkata with the overall performance showing an incline in the rates.
May 2020 - Week 4 (24 - 31):
- In Kolkata, the price of gold at the beginning of the last week of the month was Rs.4,811 per gram on 24 May and dipped marginally to Rs.4,802 per gram on 25 May due to a higher risk appetite amongst investors amidst positive Japanese equities data. The price of the precious metal dipped further to Rs.4,801 per gram on 26 May as hopes of a recovering economy increased risk appetite amongst investors in many countries.
- The price of the yellow metal on 27 May was steady at Rs.4,801 per gram and remained unchanged on 28 May as well. However, on 29 May, the price of the metal dipped by Rs.100 to Rs.4,701 per gram as investors awaited the response from the United States of America on the imposition of a security law on Hong Kong by China.
- On 30 May, the price of gold increased marginally to Rs.4,702 per gram and closed the month and the week at Rs.4,712 per gram. The rise in prices in the latter half of the week was due to the rising tensions between China and the United States of America and China along with riots happening in the United States of America as well. The metal closed May with an overall monthly incline in prices.
Trend of Gold Rate in Kolkata for April 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|April 1 Rate||Rs.4,263 per gram|
|April 30 Rate||Rs.4,731 per gram|
|Highest Rate in April||Rs.4,826 per gram on 29 April|
|Lowest Rate in April||Rs.4,263 per gram from 1 - 5 April|
April 2020 - Week 1 (1 - 4):
- A gram of 24-karat gold was priced at Rs.4,263 in the city of Kolkata on 1 April. The price of the gold did not record any incline or decline in the first week of the month due to the lockdown imposed in the country, which resulted in the trading centres to be closed.
- Gold prices were fluctuating heavily with a sign of a slight increase in the international market with investors awaiting the job data from the United States of America. However, even though gold prices were set for a drop due to the increasing value of the dollar, bad job data from the U.S. capped its losses.
- At the end of the week, gold closed the first week of April in Kolkata at Rs.4,263 per gram on 4 April.
April 2020 - Week 2 (5 -11):
- In Kolkata, a gram of 24-karat gold was priced at Rs.4,263 on 5th April. The price of the metal did not see any change when compared to the closing price of the previous week.
- The rates climbed to Rs.4,275 per gram on 6th April as bleak U.S. nonfarm payrolls data underscored the deepening economic impact of the coronavirus pandemic.
- The rates continued to increase over the week and recorded its highest price for the month on the 10th April with a gram costing Rs.4,499 as investors hedged risks ahead of a long weekend and a meeting of top oil producers. Gold closed the month at Rs.4,263 per gram with the overall performance showing an incline in the rates.
April 2020 - Week 3 (12 - 18):
- In Kolkata, gold opened the third week of the month at Rs.4,475 per gram on 13 April and dipped marginally to Rs.4,449.5 per gram on 14 April. However, on 15 April, the price of the metal recovered marginally and was priced at Rs.4,478 per gram. The rise in prices occurred due to increasing speculation among investors about a possible recession.
- On 16 April, the price of the metal increased to Rs.4,479 per gram with safe-haven demand of the metal constantly on the rise due to the increasing effect of the Coronavirus on the economy on a daily basis. The price of the metal hit its highest of the week and month on 17 April, just 7 days after hitting it, at Rs.4,499 per gram.
- The metal on the last day of the week closed at Rs.4,345 per gram recording a decline in prices on that day due to President Trump announcing measures to restart the economy in the United States of America. Due to increased risk appetite, the investors shifted back to the bullion market. At the end of the week, gold recorded an overall incline in prices closing at Rs.4,345 per gram on 18 April.
April 2020 - Week 4 (19 - 25):
- In Kolkata, the price of gold at the start of the fourth week of April was Rs.4,336 per gram. The rates were down by Rs.9 for every gram when compared to the closing price of the previous week.
- The rates slipped in the eastern metropolitan city after recording a minimal increase the next day. The decline which saw a gram of the 24-karat gold being retailed for Rs.4,323 on 22nd April was accounted to the dollar firming up amid doubts over the United States’ plan to reopen the world’s largest economy even though the coronavirus pandemic shows no signs of easing.
- Gold prices climbed over the last three days of the week emboldened by hopes of more stimulus from the United States as the lockdown imposed to curb to spread of coronavirus starts to take a toll on the economy and its labor market. The precious metal closed the week Rs.4,592 per gram, the highest recorded price for the month of April till date.
April 2020 - Week 5 (26 - 30):
- In Kolkata, the price of gold at the beginning of the last week of April was Rs.4,800 per gram on 27 April. The price of the metal showed heavy inclines in the country, amidst the declining trend in prices in the international market. With higher risk appetite amongst investors in the United States of America, with speculations of easing of lockdown restrictions, investors shifted to the stock market.
- The price of the metal on 28 April dipped marginally to Rs.4,776 per gram with investors booking profits on the metal’s prices. However, on 29 April, gold hit its highest price of the week and the month at Rs.4,826 per gram as investors shifted to the bullion with central banks announcing stimulus packages for the economy.
- With the high prices of the metal, gold prices dipped in the last day of the month on 30 April at Rs.4,731 per gram. The dip in prices was due to lower demand of the metal with investors awaiting an ease of lockdown restrictions.
Trend of Gold Rate in Kolkata for March 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|March 1 Rate||Rs.4,303 per gram|
|March 31 Rate||Rs.4,263 per gram|
|Highest Rate in March||Rs.4,583 per gram on 7 March|
|Lowest Rate in March||Rs.4,150 per gram on 24, 25, 26 and 27 March|
March 2020 - Week 1 (01 - 07):
- A gram of 24-karat gold was priced at Rs.4,303 per gram in Kolkata. The price of the gold held steady on 2 March as well. Throughout the week, gold prices saw an inclining trend due to the investors shifting to the bullion market due to its safe-haven appeal. With the Coronavirus spreading all over the world, its effect on the economy has been nothing short of disastrous. The gold price on 3 March was Rs.4,337 per gram with a marginal increase by Rs.34 with investors awaiting on a rate cut by the Federal Reserve of the U.S.
- As the United States Federal Reserve cut down the repo rates and instructed Central Banks to do so as well, the gold rate increased to Rs.4,346 per gram on 4 March. However, gold prices saw a major incline on 5 March at Rs.4,482 per gram in the city which also included a steady local demand as an important factor.
- Gold prices dipped marginally on 6 March to Rs.4,448 per gram with minute local demand playing an important factor in the lowering of prices. Along with this, a strong United States dollar value in the market also capped the gains of gold. However, on 7 March, gold showed a heavy incline priced at Rs.4,583 per gram and closed the week at an overall incline.
March 2020 - Week 2 (8 - 14):
- In Kolkata, a gram of 24-karat gold was priced at Rs.4,565 per gram on 8 March. Compared to the previous week’s closing price, the rates slipped by Rs.18 per gram.
- Over the week, the rates witnessed a declining trend in the prices as the rates of gold in the global market fell due to the impact of coronavirus.
- With gold prices headed for its biggest weekly loss since 1983 investors embarked on a selling spree to accumulate cash and meet margin calls across other markets which have been damaged by the impact of the coronavirus outbreak. This meant that gold closed the second week of March at Rs.4,265 per gram, the lowest price for the month till date.
March 2020 - Week 3 (15 - 21):
- 24-karat gold was priced at Rs.4,265 per gram in the city of Kolkata on 15 March ad held steady at the same price on 16 March as well. The price of the gold increased marginally to Rs.4,280 per gram on 17 March, soon after the repo rates were cut down on an emergency basis by the Federal Reserve in the United States of America.
- Traders shifted to the bullion market temporarily which boosted buying. However, with most investors shifting away from the stock market and bullion to sell their assets and hoard cash, the gold price dipped to hit the lowest price in the month and week till date at Rs.4,158 per gram on 18 March. However, with the European Central Bank announcing that they will take measures to help recover from the losses, the gold rate showed an incline. Gold was priced at Rs.4,237 per gram on 19 March.
- After the momentary incline in prices, the price of the gold began to dip again to Rs.4,163 per gram on 20 March as investors went back to convert their assets into cash. With a marginal safe-haven appeal, the demand for the gold saw a gradual incline in prices at the end of the week. Gold closed the week at Rs.4,265 per gram on 21 March in the city.
March 2020 - Week 4 (22 - 31):
- In Kolkata, the 24-karat gold was priced at Rs.4,263 per gram at the beginning of the fourth week of March. The rates saw an increase of Rs.47 for every gram when compared to the closing price of the previous week.
- The rates of the yellow metal didn’t see any change in Kolkata over the final week of March even though the rates fluctuated in the global market. Investors liquidated their positions in the safe-haven metal despite stimulus measures being undertaken to fight the economic damage caused by the pandemic.
- In the eastern metropolitan city, gold closed the week at the opening price of the week i.e., Rs.4,253 per gram. The fact that the rates didn’t see any change can be accounted to the lockdown which was enforced to prevent the spread of coronavirus. The rates of the 24-karat gold witnessed a declining trend in Kolkata over the week.
Trend of Gold Rate in Kolkata for February 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|1st February Rate||Rs.4,199 per gram|
|29th February Rate||Rs.4,377 per gram|
|Highest Rate in February||Rs.4,436 per gram on 25 February|
|Lowest Rate in February||Rs.4,160 per gram on 7 February|
February 2020- Week 1 (1 - 9):
- Kolkata’s gold prices have been higher than the other cities in the country. The price of the metal opened the month at Rs.4,199 per gram and hit the highest price of the week on 4 February at Rs.4,226 per gram. However, the price of the metal remained steady for the first three days of the week.
- On 5 February, the price of the metal started dipping as investors shifted back to the stock market with increased risk appetite. On 5 February, the price of the metal was Rs.4,181 per gram and hit its lowest price on 7 February at Rs.4,160 per gram. The dip in prices was when China cut down the reverse repo rate and additional liquidity was added to the market to sustain the economy.
- However, even if this measure by the Central Bank worked for a few days providing respite to the market, it did not last for long. Gold prices started increasing again on 8 February increasing to Rs.4,181 per gram with investors shifting back to the bullion market. The Coronavirus escalated again and resulted in a loss of many lives. At the end of the week, the price of the metal closed at Rs.4,209 per gram.
February 2020 - Week 2 (10 - 16):
- In Kolkata, a gram of the 24-carat gold was sold for Rs.4,209 at the start of the second week of February. There was no change in the prices when compared to the previous week’s closing price as increasing concerns over the severity of the coronavirus outbreak offset a slight reprieve for equities with China easing some work and travel restrictions.
- The rates of the yellow metal slipped to Rs.4,181 per gram in the metropolitan city on 13 February as investors’ risk appetite increased after reports emerged that there was a decline in the number of new coronavirus cases.
- Gold prices picked up in the latter half of the week as there was renewed fears over a global economic impact given an increase in the number of new coronavirus cases in China. The rates of the yellow metal closed the week at Rs.4,239 per gram with the overall performance showing an incline in the prices.
February 2020 - Week 3 (17 - 23):
- In Kolkata, 24-carat gold was being sold for Rs.4,239 per gram at the beginning of the third week of February. There was no change in the prices when compared to the previous week’s closing price and the price of the metal decreased to Rs.4,226 per gram on 18 February. This was due to investors shifting to the stock markets with higher risk appetite.
- However, the price of the metal showed continuous inclines in the global markets due to the escalating fears of the Coronavirus and its effect on the economy of not only China but also the world. Gold prices increased to Rs.4,230 per gram on 19 February, further increasing to Rs.4,282 per gram on 20 February amidst virus fears.
- With a steady local demand in the country due to the wedding season supported by the positive global trends, gold prices hit new highs in this week. At the end of the week, gold was priced at Rs.4,293 per gram on 22 February and further increasing to Rs.4,396 per gram on 23 February.
February 2020 - Week 4 (24 to 29):
- The rates of the 24-carat gold started the fourth week of February at Rs.4,396 per gram. Compared to the closing price of the previous week, the rates of the precious metal didn’t see any change in the eastern metropolitan city.
- Gold prices recorded its highest for the month the next day with every gram costing Rs.4,436 in Kolkata. The increase in the prices was accounted spurred safe haven buying given the spread of coronavirus outside China and its potential impact on global economic growth.
- The rates declined considerably following that and slipped to Rs,4,391 per gram on 27 February. The fall in the prices was accounted to investors booking profits after the global prices climbed more than 1% earlier in the session due to increasing worries about how the outbreak of coronavirus might hurt the global economy.
- The yellow metal closed the final week of February at Rs.4,377 per gram in Kolkata with the prices witnessing an inclining trend over the month.
Trend of Gold Rate in Kolkata for January 2020 (rates per gram of 24 karat gold)
|Parameters||Gold price (24 karat)|
|January 1 Rate||Rs.4,027 per gram|
|January 31 Rate||Rs.4,199 per gram|
|Highest Rate in January||Rs.4,251 per gram on 9 January|
|Lowest Rate in January||Rs.4,027 per gram on 1 January|
January 2020- Week 1 (01 - 05):
- The prices of gold in Kolkata were higher than the other states comparatively, opening the month at Rs.4,027 per gram. On 2 January, the price of the metal increased marginally to Rs.4,041 per gram amidst a weak dollar and the rising value of the rupee.
- Gold prices were holding at Rs.4,041 per gram on 3 January as investors awaited updates on the stock market. However, on 4 January, due to the tensions between the United States of America and Iran, the price of the metal increased to Rs.4,094 per gram.
- On 5 January, the metal’s price increased further to Rs.4,111 per gram, almost reaching its 7-year high. Tensions in the middle east gave rise to safe haven appetite amongst investors due to which the demand for the metal increased.
January 2020- Week 2(06 - 12):
- In Kolkata, the price of the metal in the second week of January opened at Rs.4,111 per gram. The metal’s price fluctuated through the week due to geopolitical factors such as the tensions surrounding Iran and the United States of America. Gold prices increased to Rs.4,195 per gram on 7 January.
- However, after dipping marginally to Rs.4,174 per gram on 8 January, gold prices hit the weekly high on 9 January at Rs.4,251 per gram. This was majorly due to speculations by investors concerning President Trump’s response to Iran’s attack on the U.S. Army base in Iraq.
- The price of the metal dipped drastically after United States President Donald Trump refused to escalate the tensions further and ease the conflict. Investors, due to this, shifted to the stock market on a strong dollar and gold closed the week at Rs.4,136 per gram.
January 2020- Week 3(13 - 19):
- The price of gold in Kolkata was Rs.4,136 per gram at the beginning of the week. There was a marginal dip in prices on 14 January at Rs.4,108 per gram as investors had a higher risk appetite ahead of the signing of Phase 1 of the trade deal between the United States of America and China.
- On 15 January, gold was priced at a lower price of Rs.4,074 per gram as the trade deal was signed between the two countries. Investors shifted to the stock market instead of the bullion as the value of the dollar also increased in the market. However, gold prices increased on 16 January as speculations rose amongst traders on the unresolved issues in the trade deal.
- Due to uncertainties and the tensions in the Middle East escalating, investors shifted to the bullion instead of the stock market due to its safe-haven appeal. The price of the metal increased to Rs.4,104 per gram and closed the week at the same price.
January 2020- Week 4 (20 - 26):
- Gold price in Kolkata started the fourth week of January at Rs.4,104 per gram. The rates remained unchanged in the city when compared to the previous week’s closing price.
- Over the next two days, the rates of the yellow metal increased in the eastern metropolitan city as investors turned towards the safe-haven metal given the concerns regarding growing tensions in the Middle East and the outbreak of coronavirus in China. On 22 January, gold prices stood at Rs.4,153 per gram in the city.
- The rates slipped to Rs.4,118 per gram on 23 January as investors assessed the risk of coronavirus becoming a global epidemic. Over the remaining days of the week, gold prices increased gradually before closing at Rs.4,176 per gram. The overall performance showed an incline in the prices of the precious metal.
January 2020- Week 5 (27 - 31):
- The precious metal in Kolkata showed an inclining trend in prices in the last week of the month. Opening at Rs.4,176 per gram, gold prices increased to Rs.4,193 per gram on 28 January. As investors waited on developments by the Federal Reserve’s decision on rate cuts, gold prices held steady in the first half of the week.
- After holding steady at Rs.4,193 per gram till 29 January, the price of the yellow metal dipped to Rs.4,158 per gram hitting its weekly low on 30 January. The trend of lowering prices came as a surprise amidst the positive global trends of the metal. This was majorly due to positive data from the consumer durable goods industry in the United States of America and Indian investors awaiting the Union Budget 2020.
- The price of the metal increased soon after to Rs.4,199 per gram on 31 January due to escalating concerns over the Coronavirus and its global effect. Gold closed the month recording an overall incline in prices.
Also Check Gold Price in NearBy Cities of Kolkata
|Gold Rate In Siliguri||Gold Rate In Ranchi||Gold Rate In Jamshedpur|
|Gold Rate In Guwahati||Gold Rate In Raipur||Gold Rate In Bhilai|
|Gold Rate In Patna||Gold Rate In Bhubaneswar||Gold Rate In Cuttack|
Gold as an Investment in Kolkata
Investments in gold have evolved over the centuries and gold now offers more investment avenues than ever before. Gold investments act to balance rising inflation, with changing gold rates negating any inflation which could creep in. Some of the popular gold investment options in Kolkata are mentioned below.
Jewelry – Jewelry has been the preferred choice of Indians when it comes to buying gold. Traditionally jewelry was not seen as an investment but people are warming up to it now. Gold jewels can be exchanged or sold, making it a decent investment option in case of emergencies.
Gold Accumulation Plans – These plans provide an investor with the opportunity to deposit a specific amount on a monthly basis. After completion of an agreed upon time period the investor can choose to cash in the deposits in exchange for gold coins or jewelry.
Gold Bullion Bars – Gold bars are seen as a safe investment and every country invests in keeping certain gold bars as reserves. Kolkata has a large number of high net worth individuals and gold bars can be a sound investment opportunity for them. These bars are 99.5% pure and can weigh up to 1 kg each, making them excellent high value investments.
Gold Bullion Coins – These coins are an ideal investment option for those with low reserves. Coins can be purchased according to weight, weighing anywhere between 1g to 10 g. With no wastage and making charges, coins offer better value for money than jewelry and can also be converted into liquid assets if need be.
Allocated Gold Accounts – A lot of people worry about the safety of their gold investments and this plan is perfect for those who wish to own gold but do not want to keep it with them. Gold accounts ensure that the gold is safe and secure in banks, with the owner having freedom to access it at any point.
How are Gold Rate fixed in Kolkata?
Gold rates are often set on the same principle in all the states and cities in the country. But, as variables often differ in different states and so does the demand, we see prices that are dissimilar in most places. Coming to the part about how gold rates are fixed, we can say that it hinges on a number of factors. These include:
- Rate of gold in the international market:The reason why gold rates in the international exchange matters is because much of the bullion in the country is imported. Gold rates in the global market depends on how well the US dollar is performing. This is because the metal is mostly trade in US currency.
- Import duty:Every state has a different import duty which is added on top of the duty that should be paid for importing the metal into the country. Gold prices in the market may vary depending on the duty paid at a particular point in time.
- Bank margins:Usually, banks are one of the few institutions that are designated to import gold into the country. When banks get the metal into the country, they decide on a profit margin before selling the same to the retailers. The percentage cut banks decide to take will also have a bearing on how gold rates are set.
- The MCX:The Multi Commodity Exchange, known commonly as the MCX, is a market where commodities are exchanged. Prices on this index will impact how gold is priced in a city, in this case, Kolkata.
- Associations: Bullion association is an association of traders and retailers who come together to discuss any and all of their gold related concerns. To set a rate, these traders often consider some of the biggest retailers and their latest pricing while also taking into account the profitability of the rate they set.
Like every other city in India, fixing gold rates in Kolkata involves a set procedure. While the process is the same, the various costs involved is what brings the rate difference. In this section, we tell you how gold rate in Kolkata is fixed.
- Import duty
- GST on gold
- Marginal cost of banks importing the gold
- Local bullion association along with some of the leading dealers in the city
- Cost of gold on the Multi Commodity Exchange (MCX)
- The Rupee-US dollar dynamic
When fixing gold prices, all the aforementioned factors come into play. The import duty though remains the same for all imports, same is the case with the GST too. After this, the local association decide on what price better reflects the market dynamic (demand, inflow, outflow etc). Once all this are taken care of, the performance of the US dollar and the Indian rupee provides direction to prices.
Factors behind the rise of Gold Price in Kolkata
Up until 2003, gold prices around India remained around the Rs.3,500 bracket, but things changed soon after the Lehman Brothers crash happened in 2008. When the markets crashed, people felt that investing in gold, whose prices were rising significantly would help offset their losses. Now, ever since 2008, gold prices have risen by more than 750% within a decade.
Future of Gold Price in Kolkata
While we have mentioned how gold prices have gone up over the last couple years, there is a chance that bullion trading has seen its best days already. These days there’s very few reasons why gold rates should spike, unless the world again goes through a bad debt situation like it did in 2008. Som expect gold prices to remain more or less flat for much of 2017.
Gold loans in Kolkata
Availing loans against gold has become rather common of late with several NBFCs like Muthoot Finance and Manappuram Gold Loans have been established with this as their core business principle. There are also several other NBFCs and banks which offer loans against assets like gold. To provide a loan, they usually value the gold at the current day’s rate and will keep it as a collateral tilt he borrowed amount is completely repaid with interest.
Selling Gold in Kolkata
Selling gold in Kolkata is relatively simple as nearly every jewellery store offers you this service. All you’d have to do is walk into a jeweller near you, who will value your gold and pay the total amount based on how much it weighs. However, what we suggest is that you go to reputed jewellers and retailers so that you don’t get hoodwinked by scamsters.
These are some of the most important things you should know about investing in gold in Kolkata. If you are really looking to invest in the metal, be advised that rates haven’t seen the best of days in the past few months and isn’t likely to go up any time soon.
What impact has GST had on gold rate in Kolkata?
As per the Income Tax regulations, gold as a commodity is taxable under the law and with the introduction of Goods and Services Tax (GST) on 1st July, 2017, the price dynamic has underwent a major rejig. As per the old law, gold was taxed at 12.2% , of which 10% was the import duty, 1% was the excise duty, while the remaining 1.2% was the VAT complement of the tax. At present, the the excise and VAT duty have been scrapped and has been replaced with a GST of 3% and the 10% import duty still remains.
On the retail front, there are a few different components to look at. For instance, there’s the 5% making charge on top of the 10% import duty, and 3% GST.
Ways to invest in gold in Kolkata
Being a major metropolitan city, Kolkata certainly offers a lot of scope for gold investment. For people looking to invest in the yellow, there are plenty of avenues to choose from. These range from obvious consumer-centric instruments like jewellery and gold coins, while there are also other investment-driven options one can explore like gold bullions and Exchange Traded Funds (ETFs).
Things to know before investing in gold in kolkata
In this section we will talk about the various things you should know about before investing in gold. Here are a list of things every gold investor must know before making their purchase:
- The purity level:Gold is available in multiple levels, which are based on how pure they are. These are four of the mostly known ones, i.e,, 14 karat (58.33% pure), 18 karat (75% pure), 22 karat (92% pure), and 24 karat (99% and above). A 24K gold is also considered to be the purest form of gold. For jewellery purposes, 22K gold is commonly used as it offers designers a certain level of customizability. Another reason 22K gold is used instead of 24K is because the latter is far too brittle to withstand complex and intricate designs.
- What the labour charges are:Every jeweller, irrespective of where they are based, add what is known as labour charge. This is the compensation for the man hours spent creating a piece of jewellery. Sellers usually add this amount to the overall cost of the product.
- Certification:Every gold type is certified with an authentication letter and most jewellers provide the a certificate stating that their gold is either KDM or Hallmark certified. Make sure your gold has the right certification before making the purchase.
- Timing of the purchase:The timing of your purchase can have a bearing on how much your jewellery could cost. For instance, during festive seasons when demand is high, you are likely to spend more as opposed to buying during the off season. Also be on the lookout for additional offers which reputed jewellers put up from time to time.
- Keep the weight in mind:When a jewellery is weighed before a sale, any other stones used (emerald, diamond etc) will also be included in the pricing. This may increase the price of your jewels further. So, keep this in mind when purchasing studded jewellery.
What factors influence gold rate in Kolkata?
There are a number of reasons why gold is priced different in almost every other city in the country.
- One of the things that play a role is logistics. You see, India has very few gold mining companies and in order to make up for the shortage, we import gold from other countries like Switzerland, Saudi Arabia, the USA, Ghana, Peru, Bolivia among others.
- The second factor is the Central Bank, which sometimes imports gold when there’s an especially high demand for the metal. As a consequence of this, gold prices also rise up.
- The third factor is the Indian Rupee. Depending on how good or bad the rupee is performing, gold rates differ. For instance, if the rupee gains upto 100 points on the dollar i.e., if the value falls from say Rs. 64 for 1 USD to Rs.62 per 1 USD, gold rates drop. This is because the importing cost decline due to a stronger rupee. The opposite is also true, if rupee falls and dollar gains, gold rates increase.
What’s the difference between KDM and Hallmark gold?
KDM and hallmark are two entirely different things, in that KDM alludes to the process of using other metals to make jewellery that would last long. On the other hand, Hallmark is the certification provided to piece of gold based on its purity levels. The latter is follows a clear cut instruction set by the Bureau of Indian Standards (BIS), the arbitrator of sorts for gold standards in India.
Gold or Gold ETF: Which is a better option?
Whether a gold or gold ETF is a better option depends on the reason behind your purchase. If, for instance, you are buying gold for personal consumption, there’s no other way than to buy gold. On the other hand, if you want to buy gold from an investment point of view, you could take a clear look at ETFs. But, before going for it, you should know that ETFs aren’t the same as physical gold, in that you won’t have it with you. Also, ETFs are taxable in you register any capital gains after you liquidate your assets.
|Also Know: Silver Rate in Kolkata|