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Located on the western coast of India, Udupi is a town which is known across the world for its cuisine. This small town is slowly inching towards expansion and is believed to have one of the highest per capita income in the state. Given its coastal nature, it has played a key role in trade and commerce, which meant that goods passed through it, typically in exchange for gold payments in the past. Strategic location combined with conducive growth have enabled the people of Udupi to invest in a number of options, with gold being top on most lists. Gold prices in this coastal town are largely dependent on international gold rates, with market trends dictating daily rates.

The sale of gold in Udupi picks up during the wedding season and certain festivals, with Diwali, Paryaya and Krishna Janmashtami being some of the popular occasions wherein people purchase gold. An influx of tourists has also led to gold being sold to them during these festivals.

Gold price in Udupi

Gold rates around the world are determined after taking a number of factors into consideration, with market fluctuations, global demand, government taxes and purity of gold dictating the final price one pays. Gold rates in Udupi vary on a daily basis, with 24 karat gold costing significantly more than 22 or 18 karat gold.

24 karat gold – These are popular as pure gold investments, thanks to them being 99.9% pure. Taking a cue from international trends, gold rates in the city have been going up, with 1 gram of 24 karat gold currently costing Rs 2,968 (as of March 10, 2016). The year 2015 was a good time for residents to purchase gold, thanks to a poor performance on the back of an impending Federal Rate Hike, which led to prices falling to lows of Rs 2,515 in mid-2015. Since January 2016, gold prices have steadily climbed up, jumping by over Rs 400 in the last three months.

22 karat gold – 22 karat gold is perhaps the most popular option when it comes to buying gold in Udupi, thanks primarily due to its blend of purity and affordability. Its 92% purity index makes it around Rs 200 cheaper per gram compared to 24 karat gold. Witnessing a trend similar to 24 karat gold, prices have gone up since January 2016, currently trading at Rs 2,760 per gram (as of March 10, 2016). Gold prices fell below the Rs 2,300 mark per gram in 2015 and hovered around Rs 2,400 per gram for a major portion of the year.

Gold Rate Trend in Udupi for April 2017 to June 2017 (per gram of 24 karat gold)

Gold Rate Trend in Udupi for January 2017 to March 2017 (per gram of 24 karat gold)

Gold Rate Trend for Udupi in January 2017

• On the 1st of January in Udupi, gold was priced slightly low on account of reduced demand. The rate of gold was Rs.2,820 per gram. This rate was noted the next day as well and was also the lowest at which gold traded for the month in the city.
• A marginal increase in the rate was seen from the 3rd of the month due to heightened demand for this precious metal from jewellers. As a result, gold traded at Rs.2,890 per gram on the 10th of January.
• From the 12th of the month, gold was priced at Rs.2,920 per gram. This rate continued until the 15th and can be attributed to the harvest festival of Sankranti. The rate of gold continued to increase as the week progressed.
• This precious metal traded at Rs.2,970 per gram on the 23rd and the 24th of January and this was the highest at which gold traded at for the entire month. However, this high rate was not sustained and gold rate reduced marginally on account of low demand.
• On the last day of January, gold was priced at Rs.2,930 per gram and recorded an incline of 3.90% in the price of gold.

Gold Rate Trend for Udupi in February 2017

• Gold opened the month of February by trading at Rs.2,945 per gram and was also one of the lower rates of gold noted. This was due to reduced demand from investors and jewellers.
• The rate of gold was steady at Rs.2,945 per gram until the 5th of the month post which the price of this metal increased by Rs.10.
• Throughout the month of February, a number variations were noted in the rate of gold due to fluctuations in the demand for this metal along with other geopolitical factors.
• On the 16th, gold traded at Rs.2,970 per gram and increased the next day to trade at Rs.2,980 per gram.
• As the value of the U.S.Dollar fell, the rate of gold rose to Rs.2,995 per gram. Gold traded at this price from the 24th of February to 26th of February.
• On the last two days of the month, the rate of gold increased to trade at Rs.3,005 per gram. This was also the highest at which gold traded for the month. A rise of 2.03% was noted in the price of gold in Udupi.

Gold Rate Trend for Udupi in March 2017

• The trend observed in Udupi during the month of March was in opposition to the trend witnessed in January and February.
• This precious metal traded at Rs.3,005 per gram on the 1st, which was a continuation of the rate noted during the end of February. This was also the highest rate at which gold traded at for the month.
• However, demand from international and domestic markets fell, resulting in a decline in the rate of gold to Rs.2,990 per gram. The rate of gold continued to decline as the month progressed.
• A number of variations were noted in the rate of gold in Udupi in March.
• On the 15th of March, gold traded at its lowest for the month due to U.S. Fed Reserve’s decision regarding the interest rates. The price of gold on this day was Rs.2,855 per gram. However, a marginal recovery was noted over the next few days.
• On the last day of the month, gold traded at Rs.2,990 per gram recording a decline of 3.49% in the price of this metal in Udupi.

Gold investment avenues in Udupi

Gold has always been a part of celebrations in Udupi, with sales peaking during festivals. Apart from the novelty factor, it is also considered a family heirloom, thereby imparting importance to it. Some of the popular modes to purchase gold in Udupi are mentioned below.

Over-the-counter – Jewellers are the preferred option for most residents of Udupi, with a number of gold options provided to them. While 24 karat gold can be purchased in the form of coins or bars, 22 karat or 18 karat gold can be purchased either in the form of jewellery, coins or bars. Jewellery stores provide gold products for different budgets, ensuring that one finds something to suit their financial requirements. One can choose to purchase gold coins from certain banks too, albeit such purchases are traditionally costlier.

Market trade - Still in its infancy stage in Udupi, market trade provides an option for people to own gold without physically going to a jeweller or bank. The National Stock Exchange and Mumbai Stock Exchange provide platforms for people to indulge in gold trade, with gold ETFs, E-gold and futures contracts being the popular modes of investing in gold.