Friday, April 26, 2024

What Is The Price Of Gold And Silver

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Demand For Gold In Mumbai

what is spot price and what is premium price of gold or silver

Mumbai is one of the largest metropolitan cities in the country. Hence, gold demand is likely to be the highest in the city of Mumbai, like any other large city for example, Delhi. We beleive that gold rates in the city of Mumbai would continue to grow, though a double digit growth in demand from the city is ruled out.

In fact, across the country we have seen a sharp slide in the demand for gold by almost 50 per cent. As the government continues to lay an emphasis on moving away people from gold by encouraging gold bonds, physical demand for the precious metal would be poor. However, we believe that demand for gold In Mumbai would continue to remain steady. We do not think that there would be some serious investment demand in the city, given that the de-monetization has reduced demand for the precious metal.

History Of Gold Trade In Mumbai

The history of gold trading in Mumbai can be traced to many centuries back. In fact, when the Britishers ruled India, gold came through ships and docked at the Gateway of India. Even silver followed the same route. In fact, the city of Mumbai, which was then known as Bombay was one of the major trading centres for gold in India. Today, trading in Mumbai in gold still continues and it maintains its stature as a great place to trade in the precious metal. Places like Charni Road have a lot of jewelry shops and are now the place to shop for precious ornaments in the country. The city of Mumbai has maintained its charm not only as a gold trading destination, but, it also has the diamond market for trading diamonds. Silver also contiues to remain an important commodity shipped from the city.

Whats The Price Of Gold Per Ounce

The price of Gold can fluctuate based on market conditions, supply and demand, geopolitical events and more. When someone refers to the price of Gold per ounce, they are referring to the spot price. The spot price of Gold is always higher than the bid price and always lower than the ask price . The difference between the spot price and the ask price is known as the premium of Gold per ounce.

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Is Gold Consumption In Mumbai Declining

There has been some serious declining trend in gold consumption across India, which means that gold consumption in Mumbai is also fast declining. Of course, there are plenty of reasons for the same. The government of India has itself been discouraging gold consumption considering the huge amounts that are already in the country. When gold consumption rises, it paves the way for a lot of US dollars to leave the country and this puts pressure on the rupee against the UD dollar. Remember, gold accounts for the second highest imports after crude oil and we have to pay for gold imports through our valuable foreign exchange reserves and mostly in dollars. So, the government’s measures to reduce consumption of the precious metal has also led to a declining trend of demand being noticed in India.

What To Look For In Delhi Gold Rates Before Buying

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If you ever thought of buying gold in Delhi, you need to do a thorough research. For example, among the things that you need to look at is how prices of gold in Delhi are determined. Among the top factors is the international gold rates. Having said that another big factor that influences gold prices in Delhi is the duties that are applicable and made payable by the government from time to time. These days there are not too many changes that are happening on the gold duties and taxes front. However, there are times when the current account deficit goes for a toss and the government to curb gold imports has to levy duties on the same. This is done because gold form the second highest imports in the country and a lot of foreign currency outflows happen when we import gold.

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Difference Between Sovereign Minted Coins

Sovereign minted silver bullion is the sole manufacture of a government mint. Traditionally, government mints have produced silver coins to commemorate national heroes or events. In some cases, these silver coins are tremendously old and incredibly rare. Privately minted silver coins, on the other hand, are designed for aesthetic reasons and are not usually have prices as high as those silver coins from sovereign mints.

Are Gold And Silver Prices Correlated To Platinum And Palladium Prices

All precious metals share some positive correlation with each other, especially during times of inflation. However, platinum and palladium are more sensitive to the economic cycle and to automotive demand in particular.

While gold and silver are money, platinum and palladium historically are not. They therefore dont see much investment demand.

Palladium tends to be the least correlated to the other precious metals and often seems to march to the beat of a different drummer. That makes it useful potentially as a portfolio diversifier.

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Gold In Futures Markets Vs Spot Market

You can buy gold in two ways: one is in the spot market in Delhi at the local jewelers shop or through the futures market. In the first instance, you pay the entire amount and you take possession of the gold that you purchased. So, you buy 10 grams at Rs 2,700 per gram, you pay Rs 27,000 for the same. On the other hand in the futures market, you buy 10 grams, but, you only pay margin money, probably of 10 per cent. So, you have higher exposure by paying very less. This is of course very risky way of buying and selling gold, but, you can also end-up making higher money. One important thing that we need to mention is that you have to sell the gold you buy, before the expiry of the contract in the futures segment. On the other hand in the cash segment, since you have already paid the cash, you can take possession and sell the gold at the time you like.

What Is The Difference Between Silver Coin Value And The Silver Spot Price

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The silver spot price will fluctuate daily based on movements throughout the industry. This overall silver price may represent an excellent opportunity compared with the value of silver coins. A silver coins valuation comes from four secondary factors: mintage, scarcity, numismatic value, and the condition of the coin. These factors have a direct impact on the value of the coins on the market. Numismatic silver coins will generally carry a higher premium over regular bullion coins when it comes time to sell, however all silver coins will follow the silver spot price and increase/decrease accordingly as the spot price moves.

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Where To Check Gold Rates And Buy Gold In Delhi

Delhi has a number of places with a heavy concentration of jewellery shops and you can check gold rates there. For example in the South Extension you can find gold shops like Tanishq and Mehersons. Karol Bagh too has a number of shops where you can buy the precious metal.

Most of the shops are pretty competitive when it comes to gold rates. You are not going to find too much of a price difference, though it is highly likely that you may find a difference in the making charges of gold.

There are various other places, where you can find many jewellery shops. In fact, if you are going to the less popular ones, it is better to check for quality and the standard hallmarking quality that you may require. You can also do your own research in buying gold, though that is not advised.

Will Silver Bolster My Retirement Fund

Silver is an excellent investment opportunity for retirement. As with any investment, it does come with risks attached. The best way to mitigate risk is to avoid ETFs and purchase small amounts of silver bullion when your budget allows. Building up a portfolio incrementally allows you to track the movements in silver price and get an idea where the best avenue for long-term investment lies.

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Can You Lock Money In Gold Etfs

If you are a keen investor in Delhi, you can also look at locking money in gold ETFs in Delhi. We thing that this is one instrument that you should try for various reasons. Just imagine that you can sell the gold extremely quickly as the liquidity in the instrument is pretty high. Another reason for buying is that it is more convenient to store and you do not have to rush to the bank locker everytime you want to take your jewellery. The other reason is that you can buy and sell at the same time. it is also more liquid. There are many such ETFs that you can buy including the Goldman Sachs Gold ETF, Kotak Gold ETF, SBI Gold Exchange Traded Fund etc. Gold ETFs tend to perform in the same manner as gold, since they track gold prices. Some of them can be converted to physical gold as and when there is a need. One must keep in mind the tax liability that arises through the different forms of gold investment like Gold ETFs and Severing Gold bonds. Go for which ever ones that have the lowest tax liability.

A Visit To The Gold Market In Mumbai

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Readers often ask the question: where to buy gold in Mumbai? And, for Mumbaikars this is probably the most simple answer to give. Yes, visit Charni Road in Mumbai which is probably the biggest gold market in India. You have several hundreds of shops lined-up very close to each other, where you can buy the best and the latest stuff. In fact, this is also popularly called Zaveri Bazaar in Mumbai. There are easily thousands of patterns that one can choose from. Most individuals in the city of Mumbai visit the place for buying gold. Mostly, each person has his or her own traditional shop from where he buys the precious metal. These shops have over the years become more plush then they used to be once upon a time. Gold prices in Mumbai’s Zaveri bazaar is unlikely to change and what may actually differ is the making charges of the precious ornaments. You can also get access to the diamond market which is also rather popular in the city. It is not too far way from the Zaveri Bazaar gold market of Mumbai. You can get all diamond studded ornaments here.

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How To Import Gold In Into India

You cannot freely import a lot of gold into India. When importing gold into Mumbai, the one thing you should note is that there is a limit of Rs 50,000. That limit of course for male passengers. For female passengers, the government has been more liberal and you can import as much as Rs 1 lakh.

Beyond that there is a duty of slightly more than 10 per cent.

So, if you are entering into Mumbai with imported gold, you need to know the norms.

One important thing that we also need to mention is that if you are carrying gold away from Mumbai, you need to take an export certificate. What would then happen is that you would not be questioned by the authorities on your way back into Mumbai with gold.

The term used to get a certificate is called an export certificate. You can take that certificate and show it on your way back, so that the custom officials know about it.

What we also suggest that as far as is possible avoid importing gold. This is because today India boasts some of the finest patterns in Gold and the best quality. So, you need not hassle yourself too much on that count.

Is It Worth Investing In Gold Schemes In Delhi

Jewellers in the city of Delhi run many schemes from time to time. Investors often ask whether it is worth investing in some of these schemes. It all depends on your need to be honest. For example, if you feel that you need to gather money for an occasion like marriage or a wedding anniversary, you should go for these schemes. Remember you need to look at the benefits that the jewellers in the city of Delhi offer. For example, if you are looking at charges then some jewellers reduce the making charges, if you have taken a gold jewellery scheme from them. So, make sure that you negotiate such kind of deals before you buy any into any gold scheme. Are suggestion is that it is always a good idea if you are planning an anniversary or birthday gift to stay invested in gold schemes. Also, there are many jewellers who lock the prices of gold, the day you make the deposit in the scheme. So, this way you are hedged against risks of any sharp drop or rise in the prices of gold.

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Factors That Determine The Price Of Silver

The spot price of silver is determined by a number of different factors. Like any commodity on the open market, the price of silver is subject to change at any moment due to volatile market dynamics.

Factors that determine the price of silver include :

  • Supply and demand
  • Currency valuation
  • Institutional buying power

Supply and demand pertains specifically to the ratio of how much silver is desired on the market compared to the volume of silver being produced from mining and minting. This is arguably the most common variable in determining the current silver price.

Investor spending refers to the activity of individual and collective investment in silver bullion, coins, and ETFs. Spending patterns will usually reflect the changing price of silver from one day to the next, such that spending will increase when the market silver price is low.

Aside from buying and selling silver, investors also engage in market speculation in the form of silver futures investment. Futures investment is the practice of speculating a future price of silver and agreeing to sell it on a specific day, for a set price. Silver futures trading has a direct impact on the price of silver because a falling price of silver may induce a trader to sell thereby compounding the decline in silver prices & value.

Where To Buy Gold In Mumbai

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There are a number of places where you can shop for gold in Mumbaii. One is the famous Zaveri Bazaar, where you find several gold jewellery shops lined-up. The renowned names for shops in Mumbai include Tribhoovandas Bhimji Zaveri and Tanishq among others. There is also a diamond market, which Mumbai is famous for. There are a host of other places, where you can buy gold from including the local shops around.

While gold rates in Mumbai barely differ from shop to shop, you should watch for the making charges. Sometimes if the value of the gold is large, a slight difference in the making charges could mean a lot. However, gold rates are unlikely to defer from jeweler to jeweler given the fact that gold rates are determined by the local association in the cities. These days it is a question of prestige, reputation and reliability and in this case it is always a better idea to go to your trusted jeweller, whom you have been buying since the last many years. This is better for your own satisfaction on the quality of gold that you are going to buy.

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Whats The Difference Between An Ounce And A Troy Ounce

The troy ounce is the standard unit of measurement used for precious metals like gold and silver. A troy ounce, when converted into grams, is equal to 31.103 grams, which is heavier than the traditional ounce, equal to 28.349 grams.

A troy ounce is approximately 10% heavier than a regular ounce. An avoirdupois ounce, or traditional ounce, can be converted into a troy ounce by simply dividing it by 0.91. However, for every troy pound, there are only 12 troy ounces, making a troy pound lighter than a regular pound, which is 16 ounces. It can be confusing, but this is the standard for measuring precious metals like gold and silver.

History Of Silver Prices

Silver and silver prices have played an important role in human cultural and economic development. The status of silver as a precious commodity made silver an important currency in early market economies, while its aesthetic appeal has remained strong ever since silvers discovery in Ancient Egypt.

To the Egyptians of the Old Kingdom, the silver price was initially deemed higher than gold. Egyptians were already familiar with gold, and Pharaohs had no trouble collecting it for jewelry & personal use. However, when silver found its way into the Empire, it quickly bore high prices as one of the most sought-after precious metals. Part of the reason for the heightened status of silver was that, because silver had never been seen before, the Egyptians assumed it was rarer than gold. Pharaohs and the wealthy upper class of Egyptian society were mesmerized by the shimmering quality of silver, and for many years in the Old Kingdom, silver had higher prices than gold.

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Gold Etf Vs Sovereign Gold Bonds

Gold ETF is a product of Asset management company, so it is a private one whereas RBI issues the Sovereign Gold Bonds or SGB on behalf of the government. So comparatively Sovereign Gold Bonds are safer as they are on behalf of the Government.

One of the advantages of putting your money in the gold bonds is you will be getting some interest for every six months which you will not get if you are investing in ETF’s. Instead of getting interest you should pay some charges for it.

You can get a loan against Sovereign Gold Bonds which you cannot get against the ETF’s.

The loan amount you will be getting depends on the bank and the gold rates in Delhi on that day.

Capital gains tax is also a thing you should consider before deciding whether to go for an ETF or a gold bond. If you hold an ETF above twelve months, you should pay long term capital gains tax, or If you are holding an ETF for less than a year you should pay short term capital gains tax. The tax you will be paying depends upon the movement of the gold price in Delhi that year. But when it comes Sovereign Gold Bonds there will be no such taxes.

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