Uttar Pradesh is the most populous state in India. It is known for over-the-top wedding celebrations and hence, gold becomes an essential part of these ceremonies.  Even those from the lower-income groups are seen investing in gold jewellery during a wedding in the family. It is also one of the few States in India that produces gold. In 2020, the Geological Survey of India found gold mines with an estimated 29,000 tonnes in the Sonbhadra district of Uttar Pradesh.

The traditional way of investing in gold in Uttar Pradesh is in forms of coins, bars, and jewellery. However, in recent times people in the state have become aware of new ways of investing in gold other than in its physical form. Buying gold jewellery is still the preferred method of investing in gold in Uttar Pradesh. Gold is traditionally seen as a safe and simple investment among people across all economic classes, making it a popular choice for buying on festive and auspicious occasions. One downside to buying gold jewellery, however, is that you will need to pay making charges, which can add another 10% to today’s gold rate in Uttar Pradesh.

Aside from that, fashion is constantly changing, so you might not get the same price for your jewelry when you decide to sell. Gold jewelry can be an appealing choice for immediate use, but if you're considering gold as an investment, there are better options now that are convenient and more cost-effective, which we'll discuss.

What is the Gold Rate Today in Uttar Pradesh?

The 22-carat gold rate in Uttar Pradesh today is ₹6865/gm. The 24-carat gold rate in Uttar Pradesh is ₹ 6865/gm as of 19th April 2024.

Gold Rate in Uttar Pradesh For The Last 10 Days

Here’s how gold has performed over the last 10-days.

Historical Prices of the Gold Rate in Uttar Pradesh:

Given below are the 24K gold variations over the last 3 months.

Factors Affecting the Gold Rate in Uttar Pradesh

Final Price of Jewellery

Consumers and investors are more concerned with the rate at which they can purchase gold for social or investment purposes. While the final price cannot be determined by a standard method, there is a requirement to know what MCX and IBJA are before we can understand gold rates in Uttar Pradesh today.

MCX stands for Multi Commodity Exchange. In many ways, it works like a stock exchange, such as the BSE, by trading commodities futures contracts. Gold prices are affected by the trading activities of big traders at the MCX, such as bullion dealers and banks. The final gold price is influenced by factors such as international gold prices, rupee-to-dollar exchange rates, and supply and demand at MCX trading.

The Indian Bullion Jewellers Association (IBJA) determines daily prices through consultations with the top 10 gold dealers in India, but the MCX provides the market with future gold price trends. 

Local Gold Associations take a cue from the gold rate decided at the national level, after taking into consideration local factors like transportation costs and seasonal hikes. Small jewellers determine their prices individually. A making charge is added to ornaments by jewellers in Uttar Pradesh after 12.5% customs duty and 3% GST are applied to gold prices per 10 grams.

The final jewellery price = gold weight in grams x gold rate in Uttar Pradesh today (22K or 18K gold) + Making charges (inclusive of 5% GST) + 3% GST  (the price of jewellery + making charges). 

Gold Investment Options

Today you can buy gold in a variety of methods. Take a look at your options.

Physical Gold: You can invest in gold bars, coins or jewellery. You can buy it from jewellery shops. However, when buying gold jewellery designing and making charges add to the buying price over and above the gold rate in Uttar Pradesh. Also, you need to pay for insurance and safe storage as well. 

How to buy gold coins in Uttar Pradesh?

• Gold coins are popular as gifts during auspicious occasions in Uttar Pradesh. The fact that gold coins come in different weights, offering investors the choice of investing according to their budget, makes it another excellent investment choice. There are many jewellers and banks that sell gold coins.
• There is also the option to buy gold coins online, but you should only purchase them from a reputable jeweller. When you buy gold coins, you should always obtain a purity certificate.
• Even though banks sell gold coins, they can't trade in them, so you won't be able to sell them in return.
• You can buy gold coins from authorised service providers under the Centre’s Gold Monetisation Scheme, launched in 2015.

Also Read: What is Gold Standard and How Does it Work?

Digital Gold: Digital gold is gold in an electronic form. Platforms like Khatabook, allow you to invest in digital gold. You can start small and accumulate gold in an insured locker until maturity. Units of digital gold can be bought online, starting from one gram onwards at the gold rate today in Uttar Pradesh.

Gold Mutual Funds: Asset management companies or AMCs manage gold mutual funds, which invest in ETFs in accordance with fund rules. You can also invest in mutual funds through various apps. 

Gold ETFs: Gold Exchange Traded Funds are almost like shares. They are paper representations of physical gold. You can trade with them on major stock exchanges and there is no upper limit on these funds. You can buy them online and keep them in your Demat trading account. These are cost-efficient investment options as there are no overheads like making charges and you can buy these at International gold rates, which are lower than 24-carat gold rate in Uttar Pradesh today. Each ETF here is equal to 1 gm of gold.

Sovereign Gold Bonds: This is a part of a gold monetisation scheme that the Central government launched in 2015. The SGBs are bonds released by the RBI- Reserve Bank of India on behalf of the Government of India. You can buy bonds through banks both in the private and public sectors. The bond prices are linked to the gold prices or the gold rate in Uttar Pradesh. It does offer a 2.5% return and is issued for 8 years with a lock-in of 5 years.

Comparative Analysis of Gold Investment Options

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

Also Read: What are the Smartest Ways to Invest in Digital Gold?

Gold vs FD

Here’s the performance comparison of gold investments versus FDs.

Risk Factor: Fixed deposits and gold are both low-risk investment options. However, gold can fluctuate somewhat over the short term but has maintained its value over time. Gold has served as a hedge against inflation and the erosion of major currencies, thus making it a worthwhile investment throughout the years. In contrast, FDs are free of external considerations and offer guaranteed returns, but it all depends on the length of time you invest. The longer your tenure, the greater your return.

Premature Closure or Liquidity: In terms of ease of liquidity, gold is the preferred choice among investors seeking a quick buy-in. It is important for investors to know how the market conditions are before purchasing or selling gold, as returns on gold will be greatly affected by market conditions. Fixed deposit plans usually restrict you to the liquidity policies of the financial institution you choose. It is possible to liquidate a fixed deposit before its maturity date, but most institutions will charge you with penal interest. Consider investing in FDs from companies that offer a penalty-free exit if you think you may need money before maturity.

ROI Analysis: Gold investments can generate a substantial return on your investment. It is worthwhile to invest in gold since historically it has provided inflation-beating results. A fixed deposit, on the other hand, has a fixed return set by the bank when the account is opened. FDs offer guaranteed returns, regardless of the amount you deposit. As compared to general citizens, senior citizens enjoy a higher interest rate of 0.50%-0.75%.

Types of Gold

Comparative Chart for 22K, 24K and 18K Gold

Digital Gold

Modern times have made technological advances in measuring the purity of gold and making it available online. Digital gold is the latest currency investment instrument that lets you invest in 24 Karat pure gold. Buying gold digitally means you own the gold and have it stored in your own secure vault and account. You can exchange digital gold for 24 Karat gold coins and ingots after paying for them as they instantly reflect in your account and can be sold later at any time. Popular platforms like Khatabook also allow you to buy fractions as low as 0.10 gm of gold making your required investments very small. The Gold Savings Plan here allows you to start as low as Rs 1/- and accumulate money for a fixed term to buy gold units.

Selling or withdrawing your gold is just a few clicks on your mobile phone and checking the day’s gold rates on the platform for the sell option. On withdrawal requests, your gold is delivered with hallmark certification at your doorstep. The biggest advantage of digital gold is that it leverages not just the day’s rates when buying, but also helps you put your small savings to great use in buying digital gold.

Availing Gold Loans

A gold loan can help you tide over a financial crisis. The best part is that gold can raise 90% of its value as a secured loan in times of distress. In hard times, you needn’t sell your gold. Just avail of a gold loan. Banks, NBFCs etc, that offer these loans at a reasonable 10 to 13% interest rate for a specific 6 to 24 months. Release your gold so you don’t dilute your holdings as defaults mean you forfeit the gold.

Necessary Checks When Buying Gold Jewellery

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

• Wastage and Making Charges: Jewellers add labour costs to the final price of ornaments they sell. These charges can range between 7 and 25% plus the GST applicable at 3% of the purchase price and 5% of making charges over and above the gold rate in Uttar Pradesh 916.
• BIS Certification: The Bureau of Indian Standards and hallmarks contain details of the quality of gold, fineness, purity, jeweller’s logo etc.
• Check the purchase bill and buy-back terms: These documents ensure easy selling/liquidity, buyback facilities, and jewellery exchange on a gram-to-gram basis, minus the making and wastage charges.
• Buying Gold Online: There are jewellers who sell gold online, however, you should be very careful of the brand of the store you are buying from. Make sure to check the certificate of authentication for physical gold and do a background check on any unknown brands of jewellery.
• Beware of Fake Gold: There are various imitations of gold available in the market today. Variations like city gold or gold plated jewellery are quite popular because of their lucrative prices.

Where to Buy Gold in Uttar Pradesh

Gold jewellery can be bought at the gold rate in Uttar Pradesh, across its major cities like Lucknow, Prayagraj, Kanpur, Varanasi, Gorakhpur, Agra, etc. which boast of many reputed jewellers such as:

Conclusion 

Gold is an excellent hedge against inflation and should form a part of your investment portfolio. Many financial analysts predict that rates of gold may reach 65K in the next two years! Use authentic sources to track the gold rate in Uttar Pradesh. In India, gold is in demand, and more investors are opting for digital gold compared to last year. To invest safely in gold, use a trusted platform like Khatabook that provides you with smart choices in gold investments. Start today and exploit the ease of digital gold purchases paid for by UPI, Net Banking. Happy investing at Khatabook!