Gold rate in Pondicherry

Gold is touted to be an undying passing amongst people in Pondicherry. People in the city are always on the lookout for checking gold rates as it helps them determine the right day to purchase gold at a lower price. However, gold rates fluctuate each day due to a number of factors that directly have an impact on its price. So, here are a few factors that affect gold rate today in Pondicherry.

• Inflation: Gold is a steady form of investment particularly during the time of inflation. When inflation witnesses an upward trend in Pondicherry, people look to make an investment that is steady and provides benefit in the long run. Inflation reduces the power of purchasing and gold looks like a good option during the times of financial distress. Inflation eventually leads to an increase in the demand for gold which affects its price.

• Global changes in the price of gold: Price of gold in Pondicherry is affected by the changes in the price of gold globally. This happens because gold in the city is imported from foreign countries. Factors such as a change in demand, currency value and others tend to affect the gold price on an international level. Since gold in Pondicherry is imported, its prices are directly linked to the global gold rates.

• Bank interest rates: Change in the rate of interest on financial instruments and bank deposits leads to an increase or decrease in the demand for gold which has a direct impact on its price. Lower bank rates offered by the banks translate into more cash in the hands of people and lead to an increase in demand for gold which leads to an increase in its price. This happens because gold offers good returns and is touted to be a safe investment.

• US dollar and Indian Rupee: If the US dollar strengthens against the Indian rupee, gold rates in Pondicherry witness an increase, similarly, when the US dollar becomes weak against Indian currency, gold rates decline. This happens because Pondicherry buys gold from the other countries in US dollars. So, any fluctuation in the currency leads to a change in Pondicherry gold rate.

• Fluctuation in US dollar: US dollar and gold share an inverse relationship. If the dollar becomes strong, gold rates in India decline and if the dollar becomes weak, gold rates in India rise high as people look to invest in the precious metal instead of a depreciating currency.

While investing in gold jewellery has always been ones favourite option, you can also look to invest in modern-day options that too promise to be a stable investment option.

• Gold coins and bars: Gold coins and bars in Pondicherry are often purchased during the time of weddings or festivals. Coins and bars also make for good gifting options. One can buy gold coins and bars in Pondicherry from banks or from a jeweller. It is important to note that banks do not accept gold coins and bars back, but jewellers do.

• Gold ETF: Gold ETF means Gold Exchange Traded Fund that is a type of individual stock that invests in gold as a commodity. This gold investment option is quite popular in Pondicherry and requires an individual to open a Demat account.

• Gold Funds: Under this form of gold investment, the amount paid is not invested in gold, but in gold mining companies. Gold funds are just like mutual funds and do not require an individual to hold a Demat account.

• Gold jewellery: Buying gold jewellery tops the list of being an appropriate gold investment option. However, with making charge involved in it, this form of investment doesn’t look to be fruitful in comparison to investing in bars and coins.

Gold rates in Pondicherry are determined by the Indian Bullion Association Ltd. (IBJA) that consists of prominent jewellers. Gold rates in Pondicherry are fixed twice a day i.e. in the morning known as opening rate and in the evening known as the closing rate. While fixing the gold rate in Pondicherry, ‘buy’ and ‘sell’ quotes given by the gold dealers is considered and an average rate is arrived upon accordingly. The average rate is adjusted for local taxes and the gold rate is arrived on accordingly. Also, the above factors are taken into consideration for determining the gold rate in Pondicherry.

How to Buy Gold after Checking Gold Price in Pondicherry?

The different ways by which a user can buy gold include:

• Purchasing gold ornaments from a jewellery store
• Investing in gold coins and bars offered by jewellers, banks, non-banking finance companies and e-commerce websites
• Buying Gold ETFs from the stock exchange after opening demat and trading accounts
• Availing Sovereign Gold Bonds issued by the government
• Investing in companies involved in the mining, extracting and marketing of gold