Gold Rate in Mumbai

What’s more, gold trading and investing have become much easier and cheaper. This is great news for long-term investors and short-term traders looking for more opportunities and greater diversification.

Gold has been the best-performing primary asset class over the last five years, returning more than 200 percent on an unleveraged basis. Seeing the gold price in Mumbai today for 22 carats and 24 carats, this trend may continue for the next five years.

Investors in Mumbai are primarily looking for a favourable return while minimising the risk potential. Gold manages to meet both these investment goals that you may, as an investor, prefer.

If you are an investor in Mumbai, here is why you should consider diversifying your portfolio to include gold:

• Mumbai investors looking for a decent return on income may be surprised by the overall gold rate trends

• Gold is an inflation-beating investment with long-term gain

• The trend seen in the last 5 years proves that the value of gold has kept pace with inflation

• Stock market investment and investment in gold go hand-in-hand in the opposite direction

For instance, when gold performs well on the stock exchange, the markets almost start crashing. As a result, including gold in your investment portfolio may provide a backup when your equity investments turn unfavourable.

• Check the Purity of Gold

When buying gold in Mumbai, it is critical to acquire only hallmarked gold. This is because the chances of being misled when purchasing gold are significant.

The Bureau of Indian Standards, or BIS, is in charge of hallmarking gold in India. So, before you buy hallmarked gold in Mumbai, keep an eye out for a few items, including the BIS insignia.

Aside from the BIS mark, the jeweller's name or logo would be displayed along with the gold's manufacturing date.

• Check Prices Online and Offline

Gold pricing is determined based on the purity of gold. So, investing in tiny amounts of gold is ideal if you plan to buy gold in Mumbai. This is because it would help you understand the average prevailing gold rates.

Consider an example to help you understand this.

Assume you want to buy ₹2 Lakhs worth of gold. Buying in smaller amounts makes sense, as you can save money if the price drops.

Naturally, if gold prices rise, you will lose money. So, purchasing 10 grams of gold at a time may be the best option here.

• Negotiate Making Charges

Making jewellery requires proper skills. Before any piece is made, proper designing and additional craftsmanship are necessary. Moreover, if you want a customised design, the jeweller may not bear the forging cost and other charges.

Hence, you have to pay a specific percentage of the cost, known as making charges, depending on the jewellery type. This way, the amount you need to pay can vary, depending on the gold cost.

• Steer Clear of Studded Jewellery

Many jewellery makers add precious stones like emeralds and diamonds to gold jewellery, making it heavier. As a result, you may pay for many add-ons that do not add any value to the gold.

So, when buying gold jewellery as a long-term investment option, avoid stone-embedded pieces, as the price of studded stones may not give you any returns.

• Check Retail Locations

In addition to online and offline retailers, it is also important to check with different retail locations around Mumbai. For example, gold retailers in Zaveri Bazaar, Kalbadevi may give you a better overall deal than large retailers in downtown areas like Charni Road or Colaba.

Additionally, rates fluctuate from one city to another. For instance, if the gold rate of 24K gold in New Delhi is ₹42,864, the gold rate of 24K gold in Mumbai may be ₹41,676. So, when buying gold, the location of the retailer is an important factor to consider.

Prices are generally determined by several varying factors, such as:

• Prevailing gold rates

• Making charges

• Weight

• Applicable GST (Goods and Services Tax)

Here is the formula to calculate jewellery rates:

Gold Rate x Weight of Gold (g) + Making Charges + GST (Jewellery Price + Making Charges) = Final Price for Gold Jewellery

To understand this formula a bit better, take a look at an example:

Aggarwal Jewellers quotes ₹38,500 for 15g of gold. Now if you want to buy a gold necklace which weighs 12.5g, the price is calculated as follows:

• Price of 1 gram of gold = Rs. 38,500/10 = Rs 3,850

• Price of 12.50g gold necklace = Rs. 3,850*12.50 grams = ₹48,125

• Making Charges = 16% of (₹48,125) = ₹7,700

• Total = ₹48,125 + ₹7,700 = ₹55,825

GST = 3% of Rs. 55,825 = ₹1,675.7

So, the final purchase price of the necklace is ₹57,500.5