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India’s affinity for gold and gold jewellery is evident in the fact that we are the biggest importers of gold in the world. However, it is no secret that the Southern states look at gold in a different light. As per the 2017 India Gold Report, brides from Tamil Nadu on average wear 300 gm of gold at their wedding. The zeal to buy gold increases in Tamil Nadu around Akshaya Tritiya. There are special gold schemes launched by the Tamil Nadu government that we will discuss in detail in this article.

Are you deciding on buying gold as an investment at today’s gold rate in Tamil Nadu? Let’s start with why gold is a good investment. Gold is considered the right choice of investment and an effective hedge against inflation, uncertain economic times and political unrest. That’s why the best consultants and advisors recommend a diversified portfolio with commodities like silver and gold. But before considering investing in gold there is a lot of information one must study.

What is Today’s Gold Rate in Tamil Nadu?

As of the 25th of November 2021, the 22-carat gold rate in Tamil Nadu today is Rs 4496/gm. The 24-carat gold rate in Tamil Nadu today is Rs 4721/gm.

Gold Rates in Tamil Nadu For The Last 10 Days:

Check out our chart for the variations in the 22k gold rate today in Tamil Nadu and the 24-carat gold rate in Tamil Nadu over the last 10-days.

Date

10 Gram (22 K)

10 Gram (24 K)

24 November 2021

 

Rs. 45000

 

Rs. 47250

23 November 2021

 

Rs. 45340

 

Rs. 47610

22 November 2021

 

Rs. 46050

 

Rs. 48350

21 November 2021

 

Rs. 46220

 

Rs. 48530

20 November 2021

 

Rs. 46220

 

Rs. 48530

19 November 2021

 

Rs. 46290

 

Rs. 48600

18 November 2021

 

Rs. 46340

 

Rs. 48660

17 November 2021

 

Rs. 46250

 

Rs. 48560

16 November 2021

 

Rs. 46500

 

Rs. 48830

15 November 2021

 

Rs. 46310

 

Rs. 48830

 

Historical Prices of Gold Rates in Tamil Nadu

Refer to the chart showing the 24K gold performance over the previous three months. 

Months

Lowest Price 24 Carat Gold Rs. Per 10 Grams

Highest Price 24 Carat Gold Rs. Per 10 Grams

October 2021

46,400

47,650

September 2021

45,570

47,210

August 2021

45,990

49,380

 

Why Gold Rates in Tamil Nadu Fluctuate

Government Gold Reserves  

RBI holds the government gold reserves. When RBI buys more gold, gold prices rise due to an increase in the flow of cash in the market and a decrease in gold supply. 

Inflation 

As gold is compared to currency and holds significant value, it is used to hedge inflation. When inflation is high, demand for gold increases, and vice versa. 

Jewellery Market  

During festivals like Diwali, Akshaya Tritiya, and wedding seasons, the gold rate rises due to increased demand. As a result, when the demand-supply mismatch occurs, it leads to an increase in gold prices. 

Global Movement 

The rate of yellow metal is affected by any global movement in the gold rate. 

Interest rate trends  

With the increase in the rate of interest, people tend to sell gold to get cash. An increased supply of yellow metal leads to decreased rates. However, lower the interest rates; more money in the pockets of customers. Higher the demand and increase in rates of the metal. 

 

Final Price of Jewellery

The final price of jewellery in Tamil Nadu is higher than the rates for each day. There are a few additional stakeholders who participate in the process of deciding gold prices every day and in the long run.

  • Futures Trading: Any commodity, no matter how stable, is vulnerable to selling and buying trends. Gold futures are contracts wherein a strike rate is agreed upon as well as that a fixed amount of gold will be sold at a future date. Thus there is the MCX price set by the Multi Commodity Exchange of India Ltd which affects the gold prices of the ornaments.
  • IBJA: The Indian Bullion Jewellers Association also releases daily prices followed by local jewellery associations. This price includes the margins and prices the association buys gold from RBI or MCX.
  • Taxes and Making Charges: Gold jewellery, the most common form of retail gold purchase, involves taxes and making charges. Depending on their practices, jewellers determine wastage and making charges accordingly. A GST of 3% on the piece of jewellery and 5% on the making charges are added to the total amount you pay to buy the ornament.

So, the way the final jewellery price is calculated looks something like this:

Gold weight in grams x the gold rate in Tamil Nadu + making charges (inclusive of 5% GST) + 3% GST on the final ornament’s price.

Special Gold Schemes by Tamil Nadu Govt.

The Tamil Nadu government under its social welfare schemes has marriage assistance schemes involving the distribution of gold coins for Thirumangalyam for girls from financially poor backgrounds. This scheme was launched in 2011, and until February 2021, 12,50,705 beneficiaries have been recorded under the scheme. Details of the schemes are:

SCHEME – I 

Assistance Provided and Eligibility

  • Cheque of Rs.25,000/- and gold coin of 8 grams. 
  • The bride should have completed 10th Std, at the time of marriage. 
  • If the Bride belongs to ST, she should have completed Vth Std. The parent’s income should not exceed Rs.72,000/- per annum. 
  • The bride should have completed 18 years and the groom should have completed 21 years at the time of marriage. 
  • Only one girl from a family is eligible. 

An application must be submitted before 40 days or atleast one day prior to the wedding, in case of unavoidable circumstances.

Documents to be enclosed:

10th Marksheet, Transfer Certificate, Community Certificate, Income Certificate, . Ration Card Photo Copy, Marriage invitation, Passport size photo of the applicant and parents

SCHEME – II 

Assistance Provided and Eligibility 

  • Cheque of Rs.50,000/- and gold coin of 8 grams. 
  • The bride should have passed the Degree / Diploma, at the time of marriage. The parent’s income should not exceed Rs.72,000/- per annum. 
  • The bride should have completed 18 years and the bridegroom should have completed 21 years at the time of marriage. 
  • Only one girl from a family is eligible. 

The application should be received before 40 days or atleast one day prior to the marriage in case of unavoidable circumstances. 

Documents to be enclosed:

10th Marksheet, Degree Certificate, Provisional Certificate, Transfer Certificate, Community Certificate, Income Certificate, Ration Card Photo Copy, Marriage invitation, passport size photo of the applicant and parents.

Modern Gold Options Compared

You can buy gold today in a variety of methods. Take a look at your options.

  • Futures and spot contracts 
  • Physical Gold in coins, jewellery and bars 
  • SGBs or Gold Sovereign Bonds
  • Digital or E-gold, ETFs, Mutual Funds
  • Gold stocks/shares in gold production/mining companies
  • Derivatives and trading in gold as a commodity
  • Gold Savings Schemes
  • Gold Deposit Scheme (by SBI)

Here’s a comparison chart of physical gold with modern gold investment options.

 

Investment

Demat Account

Gold at Maturity

Gold Jewellery

Investment is made in buying gold bars/ coins/ ornaments.

Doesn’t need a Demat account.

The gold is yours to own from day 1 of purchase. 

Digital gold or E-Gold

 

Investment is made digitally and purchases units of pure gold/ ETF units.

No Demat account needed. Simple paperwork.

Gold is bought and owned in this electronic investment.

Gold Sovereign Bonds (SGBs) and FDs

 

Investment is made in a fixed-term bond or deposit earning a fixed rate of interest and for a fixed term.

No Demat account needed. Simple paperwork.

No gold is connected to the investment.

Gold stocks/shares in gold production /mining companies

 

Investment is made in company stocks involved in gold production and hence returns are dependent on company profits made.

Demat account needed.

Gold underpins the investment when they follow the fund structure.

Gold derivatives

 

Investment is made in larger quantities of gold traded on the stock market.

Demat account needed.

Gold is traded in and not owned in this investment.

Futures contracts

 

Investment is made for trading a fixed quantity of gold bought at present rates, at a future date on the stock market.

Demat account needed

Gold trading at a future date is involved.

Gold Commodity Trading

This investment in the stock market is involved in gold trading and needs specific market knowledge and expertise.

Demat account needed.

Gold trading only.

 

Difference in Traditional FDs Vs Gold Investments

Let’s compare how gold investments fare against fixed deposits:

Risk Factor

Premature Closure

ROI Analysis

Liquidity

Gold is an asset effective against inflation and a fall in currency rates when included in the portfolio. However, it can be stolen and is hard to store safely. The added costs of making/ wastage charges, insurance etc are substantial.

Gold provides you with both early liquidation and gold loan options.

If you buy gold regularly annually for 5 years, you can get 18% CAGR in returns. Digital gold allows you to buy fractions of a gram of pure gold and leverage both your savings and the day’s gold rates.

Gold both digital and physical is a high liquidity investment that is easy to sell. Digital gold units are exchangeable for physical gold.

The FD on the other hand has no risks attached to it except the falling interest rates and a fixed tenure.

In contrast, the FD sudden closure is penalized with 1% of the interest earned. However, the FDs can also be used as collateral in times of financial distress.

FD’s interest rates are linked to the term and offer an annual rate of 5-6% with an additional 0.5% for senior citizens.

Whereas, the liquidity of the FD is dependent on the bank’s policy.

 

Know Your Gold

    24K Gold

22K Gold

18K Gold

99.94 gms to every 100gms of gold.

91.67 gms to every 100gms of gold.

75 gms to every 100gms of gold.

Yellow 

Yellow 

Depends on the alloy.  

Available as coins/bars. 

Available as coins, bars and ornaments.

Available as gold ornaments.

Used in making jewellery, for industrial purposes, and in medical measuring devices.

Used in gold ornaments making.

Used in gold ornaments making.

Most pure and expensive.

Lower purity and costs compared to 24k gold.

Lower purity and cost compared to 24 or 22K gold.

 

Digital Gold

Digital gold is an electronic form of buying pure gold whose ownership is transferred to your digital and insured locker instantly. The Khatabook platform even offers fractions of a unit of gold and a Gold Savings Plan with a fixed term. This means you can now leverage your small savings to buy gold and leverage the day’s rates as well. Save and convert your money into gold units held in an insured digital locker till you need the gold in physical form. 

Buying and selling Digital Gold:

Several mobile e-wallets, platforms and apps allow you to buy digital gold. At present, digital gold is offered by several reputed platforms and apps though the big players dominating the market are just a handful. The Khatabook app is a preferred app as all you need to buy/sell digital gold is a mobile phone, an internet connection and a few simple steps to follow. 

You then perform the following steps on their platform:

  • Enter the gold, its type and weight in grams.
  • Select the payment mode and upload KYC verification documents.
  • Make a payment, and the digital gold is instantly reflected in your locker.
  • If you need to sell, check today’s gold rate in Tamil Nadu and sell your gold without further hassles. 
  • When you need to take possession of your gold, just ask for home delivery of the physical gold.

Availing Gold Loans

A gold loan means you approach a bank, gold loan company or NBFc to take a short-term loan while offering your 18 to 24K gold as security or collateral. The loan has a fixed term of 6 to 24 months and an interest rate of 10 to 13%. The process is quick and lasts just 1 to 3 days at most. On repaying the loan the gold is released and your gold is back in your custody. However, a default means forfeiting the gold. In Tamil Nadu, in February 2021, the government launched a gold loan waiver scheme for over 15-lakh women members of SHGs who could not repay the cooperative banks and cooperative societies gold loan dues.

Where to Buy Gold in Tamil Nadu:

Tamil Nadu has a wide variety of jewellery stores. Take your pick.

Jeweller

Location        

Tanishq

Chennai

Kirtilals

Chennai

Malabar Gold

Chennai

Lalitha Jewellery

Madurai

Kalian Jewellers

Madurai

Salem Stores

Salem

Pranav Jewellers

Trichy

Joyalukkas

Coimbatore

 

Checklist When Buying Gold Jewellery

Here’s what to check when buying jewellery or gold.

  • BIS Certification and Hallmark: The BIS or Bureau of Indian standards certifies the purity of gold. The Hallmark certifies talks of the quality of gold offered at the jewellery counter and shows the BIS rating, company logo etc. Do check these as it is important when you sell the gold.
  • The daily gold rates: Gold rates vary across jewellers as they add a margin to arrive at the daily IBJA or gold association rates. Besides, today’s gold rate in Tamil Nadu can vary by the moment reflected in the live prices of the commodities market. Always check these rates, alloy cost, stone charges etc before buying ornaments.
  • Buy-back terms: When selling the gold or exchanging it the buy-back rates are very important. Check if the store offers you a gram-to-gram exchange, the day’s gold rate and ensure you carry your purchase receipt along. Note that you cannot recover the tax paid, making charges etc. Hence don’t sell unless you must!

Conclusion:

Tamil Nadu investors know that gold appreciates over time as an effective long term investment. The prices are unpredictable and may have ups and downs. Gold prices have risen significantly over the last 20 years. It is an excellent hedge against inflation, economic slowdown and should be part of your portfolio. Read and buy digital gold on Khatabook.

FAQ

How do you buy digital gold in Tamil Nadu?

The steps required are to log into a platform like KhataBook. Enter the gold, its type and weight in grams. Select the payment mode and upload KYC verification documents. Make a payment and the digital gold is instantly reflected in your locker.

How do you sell digital gold in TN?

If you need to sell, check today’s gold rate in GRT Tamil Nadu and sell your gold without further hassles. When you need to take possession of your gold, just ask for home delivery of the physical gold.

Where can I buy gold in Tamil Nadu?

Tamil Nadu has many jewellery stores of repute in most cities and villages too. One can also buy gold in the pandemic times from online sites like Tanishq, Kalyan Jewellers, Malabar Jewellers etc.

What is the gold rate in Tamil Nadu today?

As of the 25th November 2021, the 22-carat gold rate in Tamil Nadu today is Rs 4496/gm and the 24-carat gold rate in Tamil Nadu today is Rs 4721/gm.

What is meant by karat?

Bullion is available as 24K gold while jewellery is also available as 22K bars, coins etc. 24K gold is the purest form. To find the karats, just multiply the mass of pure gold in any item by 24 and divide it by its total mass. The prices are quoted as today’s gold rate in Tamil Nadu per gram.

What does Hallmark represent in buying gold?

Hallmark refers to the 916 Hallmark certification from BIS (Bureau of Indian Standards)

How is the purity of gold determined?

The purity of gold is determined by referring to the carats on the BIS certification.

What is KDM gold?

KDM gold refers to cadmium-soldered gold. It is mixed with gold to make jewellery. However, due to side effects, it is no longer used.

How can I check my digital gold account holding?

Just head to the transaction history tab to get these details. Quarterly email statements are also made available just as in bank accounts.

Are joint accounts allowed under a digital gold account?

No. This facility is not there at present.