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 26th April 2024, the 22-carat gold rate in Tamil Nadu today is ₹6710/gm. The 24-carat gold rate in Tamil Nadu today is ₹7046/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.

Historical Prices of Gold Rates in Tamil Nadu

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

Why Gold Rates in Tamil Nadu Fluctuate

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.

Also Read: Steps to Calculate the Gold Price for Jewellery

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.

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

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.

Difference in Traditional FDs Vs Gold Investments

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

Know Your 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. 

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

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.

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.