Gold Rate in India Today

Carat and Karat have often been confused with one another as they are homophones. But they are different. A carat is a weighing unit used to measure gemstone size, gemstone such as a diamond. A karat, on the other hand, is a measurement unit stipulating the ratio of gold in an alloy out of 24 parts.

The key difference between 22k -and 24k gold is that of purity and mixture. 24k is the purest form of gold available as it contains 99.99% gold. The 0.01% impurity is because 100% purity doesn’t allow maintenance of form and shape at room temperature. Owing to this fact, 24k is not used to make jewellery, instead is used to make gold coins and gold bars.

As for 22k gold, the proportion comprises 22 gold parts and 2 parts. The 2 parts are other metals, namely copper and zinc. 22k gold is often regarded as "916 gold" as it contains 91.67% pure gold. As for the texture, it is harder, more durable, and scratch-resistant, owing to the presence of metals and alloys in the composition.

Gold is regarded as a precious metal, not only in India but in the rest of the world. But the reason for the high gold rate today is solely not because it is used in making jewellery, or because it was used as a commodity back in the day. Gold is considered valuable because of these three reasons:

Before we get into the discussion of how the hallmarked gold rate today is determined, the important thing to note is that there is no difference between the hallmarked gold rate and the normal gold rate today. No extra money is charged for hallmarked gold. The only difference is that a hallmarked gold ensures the purity of this precious metal.

In any case, buying quality hallmarked gold is advisable. In India, the quality of gold is determined at assaying centres. But there is a shortage of assaying centres in the country, and this needs to be addressed at the earliest by the government of India.

When it comes to gold investment, people usually buy physical gold in the form of coins or jewellery. However, there are many other forms of gold investment in India. Each one can be a good option for you depending on the purpose of your investment. Here are some of the most popular ways to invest in gold: -

Gold to this day remains a precious commodity. It is still one of the most effective investments that can be added to your portfolio. No matter the financial situation, gold has the ability to stand apart and beat inflation. It is seen as a differentiated asset that has proved itself in the past. People have made significant returns by investing and trading in gold.

A gold futures contract refers to a legal binding agreement for the delivery of the gold at an agreed price in the future. The contracts are standardized by a futures exchange, where the quantity, quality, time and place are regulated, only the time is variable.

Gold futures are usually traded on the Multi Commodity Exchange of India (MCX). Let us take a look at the gold futures contract on MCX. Here are the four types: -

• MCX gold futures –1 kg gold
• Mini MCX gold futures – 100 grams gold
• Guinea MCX gold futures – 8 grams gold
• Petal MCX gold futures – 1 gram gold

Gold prices keep increasing even though it pays zero interest. Investors love to hold physical gold compared to paper even if the interest rates are positive.

The gold rate today also depends on the purity of gold. Here is a quick overview of the different purity levels of gold: -