Are you thinking of buying gold as an investment at the current gold rate in Madhya Pradesh? The gold rate today in Madhya Pradesh makes the overall portfolio risk factor smaller. But before considering investing in gold, there is a lot of information one must know. 

What is the Gold Rate Today in Madhya Pradesh?

The current gold rate in Madhya Pradesh as of  20th April 2024, or the 22-carat gold rate in Madhya Pradesh today, is ₹6903/gm. The 24-carat gold rate in Madhya Pradesh is ₹7248/gm of 24K gold. 

Gold Rate in Madhya Pradesh For Last 10 Days

Here’s how the 22k gold rate today in Madhya Pradesh and 24-carat gold rate in Madhya Pradesh have performed over the last 10-days.

Historical Prices of Gold Rate in Madhya Pradesh

Factors Affecting the Gold Rate in Madhya Pradesh

To see how investing in gold beats inflation, imagine investing Rs 10,000 in 25 gm of gold in 2000. Today this amount in currency can buy you just less than 2.5 gm of gold. The investment over the long term has grown to Rs 1,11,800 while the value of Rs 10,000 has decreased! 

Consider this. China and India are the largest consumers of gold contributing to 25% of the annual global gold demand. India holds approximately 11% of the global stock. The gold demand in India has the Southern states contributing 40%, the northern 20%, Western 25 to 30%  and the Eastern 10% to 15% with a total 90% of the gold demand being imported and paid for in USD. 

The gold rate in Madhya Pradesh rises due to increased demand, higher import duties which in turn depend on the USD and currency fluctuations. In addition, post the pandemic in 2020, inflation and prices have risen while interest rates have dropped. The stock markets are volatile, international gold prices rising and the high liquidity of funds in the hands of the investors result in driving the purchase of gold to new highs.

Also Read: Steps to Calculate the Gold Price for Jewellery

Final Cost of Jewellery

Gold rates differ from the daily rates and from jeweller to jeweller and the IBJA or Indian Bullion Jewellers Association rates.

The final price of gold jewellery can be calculated as follows. 

The final jewellery price is equal to [Gold Weight in grams multiplied by the gold rate + Wastage and Making charges + 3% GST]. 

Gold Investment Options

Gold is a good investment asset. But if you wish to have better returns, try the modern gold investment options.

• Physical Gold: You can buy jewellery or bullion (coins/bars) at banks, jewellery shops etc.
• Digital Gold: This is gold bought on the digital platform and platforms like Khatabook, which allows you to start buying gold in small quantities. Keep accumulating gold in an insured locker till maturity. You can exchange the certificate for physical gold that Khatabook will deliver to your doorstep in tamper-proof packaging. 
• ETFs, Mutual Funds: They help you invest at low risk and are traded on the stock market. 1 ETF=1 gm of gold 
• Futures are contracts that specify that a certain fixed quantity of gold will be traded at a specified future date at today’s gold rate in Madhya Pradesh.
• Derivatives and trading in gold as a commodity at the current gold rate in Madhya Pradesh is riskier and involves trading on the commodities market.
• SGBs or Gold Sovereign Bonds are government-guaranteed bonds and have an 8-year term with 2.5% returns. They are like fixed deposits.

Comparative Analysis of Gold Investment Options

Let's quickly understand how gold investments compare with digital gold and the mutual funds investing in gold. 

Stock markets are risky while promising high returns. Options like derivatives, trading in gold as a commodity, futures contracts etc. need you to be extremely good at playing the stock markets intelligently. Gold in all its forms is profitable and hence provides a safe investment path and is an excellent hedge against inflation. The fall in currency rates like the USD, Indian Rupee etc causes a change in the gold rate today in Madhya Pradesh 22k. Gold also carries the risk of theft, insurance costs, making charges, wastage charges and more. 

The bonds, deposits in banks are comparatively low-risk options.  However, their interest rates are low and most institutions penalize early closures with a 1% penalty charge on interest earned. Gold in the physical or electronic form provides you with both early liquidation and gold loan options. 

Compared to gold rates in Madhya Pradesh two decades ago, the returns in gold are stable and ever-rising. Besides, gold is a high-liquidity investment that is easy to sell. Digital gold introduced in 2007 has become the most popular electronic form of gold since its units are exchangeable for physical gold and leverage your small savings into returns on gold prices on reputed platforms like Khatabook.

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

Important Factors When Buying Gold Jewellery

Are you planning to buy jewellery at today’s gold rate in Madhya Pradesh? Here’s what to check.

• Purity levels: 24K gold is the purest form of gold available and is 99.9% pure. The choices of buying are 22K, 18K, 14K, 10K gold etc. 
• BIS Certification: The BIS or Bureau of Indian standards certifies the purity of gold. The most popular 916 gold means that every 100gm of gold contains 91.6gm of pure gold and is quoted at the 22-carat gold rate in Madhya Pradesh.
• The Daily gold rates: Gold rates vary daily, across locations, and even by the moment on the commodities market. Before investing in gold, do take a look at today's gold rate in Madhya Pradesh.  
• Buy-back terms: The buy-back terms are essential to preserving the value of your gold jewellery.  Many jewellery shops assure customers of buyback facilities at the prevailing gold rate in Madhya Pradesh.
• Know your gold: Gold jewellery is generally 22K. Note that white and rose gold prices may be higher than the daily gold rates due to processing and making charges. 
• Wastage and Making Charges: It can range from 10 to 20% plus the GST applicable at 3% of the purchase price over and above today’s gold rate in Madhya Pradesh.

Types of Gold

24K refers to pure Gold, while 22K/ 18K gold is used in jewellery.

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

Digital Gold

Digital gold is a new global gold currency system that suffers no manipulations or variations in the exchange rate. It permits investors to easily buy, sell or trade anywhere in the world in pure gold without touching the gold and without fear of theft. You can leverage your savings by procuring fractions of gold units. Such gold is free from theft and stored in insured lockers till the time of delivery, with no restrictions on investments or conversions to physical gold in the form of jewellery. Digital gold is thus a preferred investment today in Madhya Pradesh and contributes to 4 to 5 tonnes of the gold retail sales with over 25 lakh investors in India. 

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

Trading Digital Gold

Platforms like Khatabook offer digital gold online where you can use a mobile phone and a few clicks to buy pure gold units stored in your ownership in insured lockers. You can sell digital gold from home or even convert it to physical gold at will. All you need to do is enter the weight of the gold and choose the buy/sell option on your mobile phone. You can convert it to physical gold by ordering gold jewellery with just a few clicks on the phone delivered to your doorstep in safe and sealed packaging.

What is a Gold Loan?

Physical gold, jewellery etc. can raise 90% of its value or today’s gold rate in Madhya Pradesh as a secured loan in times of distress.  Most banks and financial institutions offer such gold loans. It is repaid with bank interest within the specified time. However, a default causes the lender to auction the gold.  

Locations to Buy Gold in Madhya Pradesh

Gold jewellery can be bought across its major cities in Madhya Pradesh, which have reputed jewellery stores. 

The Bottom Line:

Gold investors, both large and small, have direct risk exposure to the daily prices of gold. The risk tolerance levels and the gold rate determine the choice of buying options. It is best to have a part of the portfolio in gold since it is a good hedge instrument. Be smart and invest in digital gold using a trusted platform like Khatabook