Gold Rate in Uttar Pradesh

Gold has always been a lucrative investment, providing stable returns and having the capacity to remain inflation-proof. Across the globe, gold investments are considered safe investments. Besides, gold shares an intrinsic bond with the cultural ethos of most countries. In India gold forms an integral part of its cultural and artistic heritage.

As a resident of Uttar Pradesh, you must have purchased gold ornaments and jewellery as part of weddings, festivities, celebrations and religious rituals. Some of you would have purchased gold bars and coins purely for investment. But did you know that you can make several gold-related investments too? Yes, from Gold Mutual Funds to Gold Sovereign Bonds the possibilities are numerous. Read on to know all about what makes gold a sound investment option and how should you make investments in this yellow metal.

To sell or purchase gold, you must know the Uttar Pradesh gold rate today. Here’s a look at the gold price in Uttar Pradesh on Dec 20, 2024.

• 24 Carat pure gold rate for 10 grams = Rs. 76,020

• 22 Carat standard gold rate for 10 grams = Rs. 72,400

• The 24 Carat gold rate in Uttar Pradesh today for 1 Gram is Rs. 7,602

• The 24 Carat Uttar Pradesh gold rate for 8 grams today is Rs. 60,816

• The 22 Carat gold rate in Uttar Pradesh per gram today is Rs. 7,240

• The 22 Carat gold price today in Uttar Pradesh for 8 grams is Rs. 57,920

If you want to purchase or sell 18 Carat gold, here’s a look at the prices:

• 18 Carat gold rate today in Uttar Pradesh is Rs. 5,854 for 1 Gram.

• 18 Carat today gold rate in Uttar Pradesh is Rs. 46,832 for 8 Grams.

To analyse the current gold rate in Uttar Pradesh, here’s a comparative rate chart between 24 Carat and 22 Carat gold rates:

The Goods and Service Tax was introduced in 2017 as part of the union government’s motto: ‘One nation, one tax.’ To streamline and strengthen the tax regime, it consolidated the tax structure by subsuming 17 indirect taxes. Under the unified tax system, four different tax slabs along with special tax rates were levied on different goods and services. While certain items, such as crude petroleum, high-speed disease, aviation fuel, and so on have been exempted from GST, a 3% special tax rate has been prescribed on the value of gold. So if you decide to purchase gold in Uttar Pradesh, you now have to pay:

• 3% GST on the value of gold: Before GST was introduced, you had to pay a total of 2% as tax on the value of gold. This comprised 1% as Value Added Tax and 1% as sales tax. Now you have to pay 3% on the value of gold.

• 5% GST on making charges: A key highlight of GST was that it taxed the service sector with different tax rates. As jewellery making was considered a part of the service sector, consumers had to pay 5% GST on the making of gold ornaments. Remember, before GST was implemented, there were no taxes on the making of gold ornaments.

Here’s a chart to help you understand the impact of GST on gold: 

As an investor in Uttar Pradesh, you can not only choose to invest in physical gold but also choose from a range of gold-related investments. Before investing, keep into account your investment horizon, be it short-term, medium-term or long-term and consider your risk appetite. You can invest in:

• Physical gold: You can buy physical gold in the form of ornaments, coins and bars. Remember to choose a safe and secure place for its storage.

• Gold Mutual Funds: You can invest in gold mutual funds with a basic Systematic Investment Plan (SIP) of as low as Rs. 1,000. These funds are open-ended and invest in gold derivatives. The Net Asset Value (NAV) of these funds are primarily influenced by the price of physical gold.

• Miscellaneous gold investments: You can choose to invest in government-backed Sovereign Gold Bonds (SGBs) or gold derivates. Both are discussed in the subsequent sections.

Gold Exchange-Traded-Funds (ETFs) represent units of physical gold and are traded across stock exchanges. To put it simply, one gold ETF is equal to 1 Gram of gold. You can begin investing with as low as 1 unit of gold ETF and gradually build a corpus. Gold ETFs primarily invest in gold bullion. To start trading in gold ETFs, you need to have a Demat account and a trading account. As compared to physical gold, gold derivatives have a lower price and are more transparent.

If you want an assured payment of the market value of gold on maturity along with regular interest payments, then choose Sovereign Gold Bonds. These are issued by the RBI on behalf of the Indian government and have a tenure of 8 years. You can choose to redeem your SGB after 5 years. As compared to physical gold, you don’t have to worry about the purity of gold or its storage. You can also use SGBs as collateral for loans. You can buy SGBS directly from the RBI or through the listed banks and post offices. You can also purchase them from SEBI-licensed intermediaries.

With bustling cities like Lucknow, Kanpur and Allahabad, Uttar Pradesh is among the states showing a huge demand for gold. Historically, people have purchased gold as a symbol of status and wealth. The residents primarily purchase gold ornaments, coins and bars. Although people have traditionally invested in physical gold, the trend is fast changing. In the era of the digital revolution, a large section of the population is investing in alternatives to physical gold. Gold ETFs, Sovereign Gold Bonds and gold mutual funds are much sought-after.

• There is no single factor that determines the gold rate in Uttar Pradesh today. Like every other commodity, the supply and demand factors largely shape the gold rate. Also, consumer behaviour shapes the gold price. For instance, during Dhanteras and Diwali, people buy gold, considering it to be auspicious. This results in high demand and consequently high prices.

• The international prices of gold - based on the spot prices and futures prices - also play a crucial role in determining the gold price today in Uttar Pradesh. The Indian Bullion and Jewellers Association (IBJA) fixes the daily benchmark rates based on these prices. This rate is then used by retail jewellers across major cities of India, including those in Uttar Pradesh, to identify the retail price for buying and selling gold.

Now that you have a checklist in place. Consider some other factors as well:

• Know the gold purity measures: The purity of gold is expressed in Carats and fineness. Pure gold is of 24 Carats with a fineness (parts per thousand purity) of 999. You can refer to the chart given below: 

• Purchase when the demand is low: If you are buying gold when there is a thriving demand, you can end up paying a comparatively higher price. For instance, most people purchase gold during Diwali and Dhanteras. You could wait for the festive season to be over before making a purchase.

• Know the credentials of your seller/jeweller: Always consider the credentials of your jeweller. You can check the BIS website for the list of BIS-certified jewellers. You can also ask whether the jeweller is a member of local or national jewellers’ association.

• Calculate the taxes beforehand: Before making a purchase ask your jeweller to provide you with the final bill amount, which includes GST, both on the gold value and the making charges.

• Consider your financial goals and risk appetite: This becomes especially important if you invest in alternatives to physical gold. For instance, investing in gold ETFs carries market risks because of the volatility of gold prices. If you are unwilling to take risks and have an investment horizon of above five years, Gold Sovereign Bonds can be a better alternative. Considering your investment horizon and financial goals will help you secure better returns. You can avail Gold Loan for your financial requirements.

If you want to purchase physical gold, you can make a physical visit to a store or purchase it online from banks or retailers. Here’s a look at the benefits of buying gold from different places:

• Offline Jewellery stores: Your gold jewellery can be designed to suit your aesthetics. You can choose from various carat purity levels and embellish your jewellery with precious or semi-precious stones.

• Online retailers: If you don’t have the time to make a physical visit to a jewellery store, you can digitally visit an online retailer, choose from scores of designs and make a convenient online purchase.

• Banks: You can purchase the highest quality gold coins from banks, both via a physical visit or online. Despite a marginally high price, you get unbeatable quality assurance. You can check Gold Loan Eligibility to avail Gold Loan from Banks too.

• Bullion traders: If you want to buy 24 Carat pure gold bars and coins, you can visit a reputed bullion trader’s offline or online store. You can benefit from competitive markup charges and easy buy-back terms.

• SEBI-licensed intermediaries: To purchase gold SGBs or to trade in Gold ETFs, you can reach out to a SEBI-licensed stockbroker. You can also contact a registered financial advisor to help you with making gold-related investments