India’s love for gold is no secret to the world, but there are only a few who know about Kerala's unparalleled association with this precious metal. It is no surprise that three of the largest gold loan companies in Kerala together hold more gold than the individual gold reserves of countries like Belgium, Australia, Sweden and Singapore.
Since gold is one of the most revered metals in the state, several festivals and occasions revolve around its buying. Its consumption pattern also increases sharply during festivals like Ugadi, Onam, Pongal and few others.
Some factors that affect the gold rate in India and Kerala are –
Geopolitical crises: Gold gets considered as a safe-haven asset and used as a hedge against inflation which is why the current political and economic situation has caused the gold rate in India to go up.
Import Duty: India imports gold to meet its demand. So, with an increase in import duty, the gold price in Kerala and across India also gets affected.
US dollar-rupee equation: Any change in the US dollar-rupee equation directly impacts the gold rate in Kerala and India. If the dollar rises, the price of gold tends to fall and vice versa.
Interest rates: There have been observations that interest rates have an inverse relationship with gold prices. As more people look to fixed-income investments with an increase in interest rates, the demand for gold falls and therefore, leading to a decrease in the gold price in Kerala as well.
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The gold price today in Kerala is getting impacted because of the reasons mentioned above. As the rupee continues to weaken against the dollar, today's gold rate in India has reason to fall. But what are the factors to consider when buying this precious metal? Let us find out.
Many investors who are interested in buying gold visit the state for its low gold prices and large chain of renowned jewellers. However, before investing in the precious metal, it is necessary to consider a variety of factors. That includes carrying on thorough research about the cities within the state where the gold rate is lowest as compared to the gold price in India. Another vital thing to note before buying gold is that most jewellers charge different rates and that is why it is best to enquire about all the gold rates offered by most of them to get a clearer picture. One other thing to keep in mind is the quality of the gold. It is always a good practice to check if it is hallmarked or not.
Where to buy gold in Kerala?
Kerala has several jewellery shops spread across the state and cities like Cochin, Thiruvanthapuram and Calicut have an innumerable number of options. Even the smaller towns offer a wide range of jewellery shops for the buying of gold. Also, the sale in these cities undergoes a dramatic increase during the popular festivals of Ugadi and Pongal. This year for Ugadi 2020 that was on 25th March, most jewellers saw a 10-15% increase in their gold sales. Since Keralites consider Ugadi as the right time to start something new, a large number of people purchased gold in Ugadi 2020 with the hope of high returns. The gold price in India and Kerala also goes up by 3% to 4% during festivals like Pongal. However, this year during Pongal 2020, gold prices were unusually high due to the growing tensions between the US and Iran and other developments in the global market. That is why the gold price during Pongal 2020 that was on 15th January was Rs.39586, considerably higher than Rs.32166 of last year.
If you want to buy gold during these festivals for any purpose ranging from long-term investment goals or auspicious reasons, you can surely visit the shops in these cities and enjoy their wide range of options. Some of the popular ones you can consider visiting include Malabar Gold and Joy Alukkas. While the gold price today in Kerala is Rs.51800 for 10g of 24-carat gold, you can track the price in the future, observe the trend and buy it when most suitable. Currently, the high gold price today in Kerala is due to a majority of factors, some of which we have listed above. However, if geopolitical situations improve and things change, you might be able to buy gold at a reasonably lower rate.
24-carat gold rate per gram –
Today’s gold rate in Kerala for 1 gram – Rs.5180
Today’s gold rate in Kerala for 8 gram – Rs.41440
Today’s gold rate in Kerala for 10 gram – Rs.51800
Today’s gold rate in Kerala for 100 gram – Rs.518000
Along with the traditional and historical importance of gold, it is an easy and convenient way to diversify your portfolio. You can hedge against inflation, get certain tax benefits and enjoy easy liquidity by investing in gold. More so, you can finance your purchase by taking instant personal loans from service providers like North Loop
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