Rajasthan, the land of the royals, Rajputs and Rajavadas, is heavily dependent on tourism. Its many historical palaces and forts stand as proof of its rich heritage and gold is a major part of it. Gold is looked at as a symbol of the Sun in Rajasthan. Men and women both are fond of wearing jewellery, and gold jewellery is one of the main commodities bought and sold there.  

With changing times gold has become one of the most stable investment options across the country. People not only buy gold jewellery for festivals or weddings but include gold in their investment portfolios. Rajasthan is no different. So, let’s look at what makes gold such a good investment option at the present gold rate in Rajasthan?

What is Today’s Gold Rate in Rajasthan?

The current gold rate in Rajasthan as of 27th April 2024, or the 22-carat gold rate in Rajasthan today, is ₹ 6769/gm. The 24-carat gold rate in Rajasthan is ₹ 7107/gm. In comparison, to ten days ago, gold prices have increased. 

Gold Rate in Rajasthan For The Last 10 Days

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

Historical Prices of Gold Rate in Rajasthan 

Tip: The gold rate in Rajasthan may rise and fall, though the performance of gold shows a steady rise upwards over longer terms.

Also Read: Steps to Calculate the Gold Price for Jewellery

Factors Affecting the Gold Rate in Rajasthan

While investing in gold, all investors seek safety, liquidity, and return on investment. Even in an economic downturn, gold has shown positive results. However, like any other commodity, there are different factors that affect its prices irrespective of the location. They are: 

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 Rajasthan 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.  

Small jewellers determine their prices individually. A making charge is added to ornaments by jewellers in Rajasthan 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 Rajasthan today (22K or 18K gold) + Making charges (inclusive of 5% GST) + 3% GST  (the price of jewellery + making charges). 

Gold Investment Options in Rajasthan

Its cultural significance aside, gold is a sound, long-term investment that can protect you against the market and currency fluctuations. There are various modern ways of investing in gold that can give you better returns.

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 Rajasthan. Also, you need to pay for insurance and safe storage as well. 

Digital Gold: In simple terms, digital gold is gold in electronic form. Platforms like Khatabook, allow you to invest in digital gold. You keep buying small amounts of digital gold online and an equal amount is kept safe in a vault under your ownership. Upon maturity, these units of digital gold can be exchanged for actual gold either in the form of jewellery or 24K pure gold at the gold rate today in Rajasthan.

Gold Mutual Funds: AMCs or asset management companies manage gold mutual funds which invest in ETFs and follow the mutual fund structure. This money is not invested in actual gold but in companies involved in the gold industry. Hence the returns depend on company profits and not the gold itself.  

Gold ETFs: Gold Exchange Traded Funds are paper representations of physical gold and almost like shares. You can trade with them on major stock exchanges. 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 physical gold prices. Each ETF here is equal to 1 gm of gold, which is evaluated at the 24-carat gold rate in Rajasthan today.

Sovereign Gold Bonds: A SGB is a bond that the Reserve Bank of India issues on behalf of the Government of India. Public and private banks offer these bonds to their customers. The bond prices are linked to the gold rate in Rajasthan. Even though these bonds are guaranteed by the Indian government and pegged to the actual gold prices, you get no physical gold on maturity.

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

Comparative Analysis of Gold Investment Options

Below is a table to help you understand the benefits and risks of various gold investments:

Comparative Analysis of Gold Versus FD Investment Options

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

Risk Factor: In terms of risk, both fixed deposits and gold are considered low-risk investments. In the short term, gold can fluctuate, but its value has remained relatively constant. Gold has served as a hedge against inflation and the decrease in currency value, making it a worthwhile investment in the long run. In contrast, FDs are free of external considerations and offer guaranteed returns, but it all depends on the length of time you invest. 

Monthly Income Generation: Gold investments do not generate monthly income. Investing in gold can create wealth over time along with acting as a hedge against volatility, and can become very valuable over time. FDs can, however, provide monthly returns if you choose periodic payments and monthly frequency. 

Premature Closure and Liquidity: Gold is a high liquidity investment that is easy to sell. Physical gold can be exchanged for digital gold units, while the liquidity of FDs depends on the bank's policies. Gold provides you with early liquidation and gold loan options. On the other hand, the sudden closure of FDs results in a penalty of 1% of interest earned.

ROI Analysis: Over the last 30 years Gold has provided a CAGR of 9.8%. However, FDs have provided a CAGR of around 8%. In Rajasthan, if you had bought gold every Teej over the past 5 years, according to an ET Wealth report, you would’ve earned 18% CAGR in returns in the current year. However, similar analyses of FD’s interest rates, which are linked to the terms and conditions set at the time of opening the account, offer an annual rate of 5-6% with an additional 0.5% for senior citizens.

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

Important Factors When Buying Gold Jewellery

Since gold jewellery is the most prevalent kind of investment done across the country, here are a few things to keep in mind before investing your hard-earned money:

• Hallmarking, Purity levels and BIS certification: The Hallmark is used by companies to denote the gold quality used and generally contains the BIS rating, logo etc. The BIS or Bureau of Indian standards certifies the purity of gold. It is the benchmark for gold jewellery quoted at the 22-carat gold rate in Rajasthan today. BIS-916 means it is 22K gold and 91.67% pure gold. Checking the purity means to ensure the gold is quality gold versus the 24K gold rate in Rajasthan and is BIS certified which is important to check when buying.
• The daily gold rates: 22k gold rate today in Rajasthan along with other levels of purity, changes every day. Each day IBJA starts the trading day by announcing the gold price for the day. Local gold associations take that into consideration to determine gold rates in Rajasthan. You should be aware of these, like the 18-carat gold rate in Rajasthan today before you buy any piece of jewellery. 
• Try Not to Sell: Usually, gold is bought with utmost care in Rajasthan, since gold is considered an heirloom passed on from one generation to another. However, life can be unpredictable. You should try to sell your jewellery to the same jeweller you bought it from. Jewellers mostly will give you 100% of the gold value, however, you’ll have to let go of any taxes or making or wastage charges paid at the time of purchase at the prevailing gold rate today 22K in Rajasthan.
• 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: All jewellers charge a making charge to offset labour costs associated with jewellery. In most cases, making charges are based on the current or today’s gold rate in Rajasthan 916. Jewellery without much design carries a lower making charge (which can vary from 6 to 25%).
• Factory Made or Hand Crafted: Factory-made gold jewellery is lower in price since the labour involved in making these is less. These are mass-produced and are usually not uniquely designed.

Tip: Buy 916 jewellery since it fetches better resale prices than the 18K gold.

Types of Gold

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

Digital Gold

Investing in gold in any form comes with a promise of good returns in the long run. However, for most investors it is not possible to shed a hefty amount every month to buy gold coins or gold jewellery. Digital gold gives you the option to own real gold without taking the hit of a huge monthly or quarterly expenditure. You can start buying digital gold with as low as Rs 10 investment. It might not seem much when you start. However, say, over a period of 10 - 20 years, you can accumulate a substantial amount of actual gold, safely kept in an insured vault until you are ready to get it delivered to you. 

Trading Digital Gold

It is possible to sell digital gold from home or even convert it into physical gold when you want. All you need to do is enter the weight of the gold and choose the sell option using your mobile phone. With a few clicks of the phone, you can order gold jewellery to convert your digital gold into physical gold. 

What is a Gold Loan?

A gold loan or a loan against gold is available from several banks, gold companies etc and is the fastest and most accessible short-term loan acquired at the gold rate today in Rajasthan. One can pledge gold in jewellery, coins, gold bars etc.. from 18 to 24K, and obtain a secured short-term loan of up to 90% of today's gold rate in Rajasthan. It must be repaid-with interest within the specified time. Digital gold can be converted to physical gold and used for loan purposes. A default in repayment leads to you forfeiting your gold.

Locations to Buy Gold in Rajasthan

Gold jewellery can be bought at today’s gold rate in GRT Rajasthan, across its major cities with reputed jewellery stores. 

Conclusion

Gold as an investment is no different in Rajasthan or India. Gold is a precious metal that never loses its value and outperforms other financial instruments during a recession. Several factors contribute to the fluctuation of gold prices. Gold is also an excellent safety net and hedge against inflation that can be easily liquidated. Investors in Rajasthan do have several options to invest at today’s gold rate in Rajasthan 916. Make a wise choice and invest safely in digital gold using a trusted platform like Khatabook.