One of the newer states of India, Uttarakhand was formed in 2000. In 2017, the Geological Survey of India found traces of gold deposits in the Rudraprayag district of Uttarakhand. In a country with only a handful of gold mines, it is an important development. One of the leading gold brands in the country has a huge factory spread over 5 acres in the industrial area of Pantnagar. 

Most traditional jewellery in Uttarakhand is made of gold and gems. Like its neighbouring state of Uttar Pradesh, weddings in Uttarakhand are incomplete without gold jewellery. It is not only treated as an auspicious offering at weddings but the most obvious and simple way of securing your future. According to one of the rural banks in Uttarakhand, gold is also used frequently to avail loans in times of distress.

With changing times gold has become one of the most stable investment options across the country. That’s why the best consultants and advisors recommend a portfolio with commodities like silver and gold. Gold makes the overall portfolio risk factor smaller. But before considering investing in gold there is a lot of information one must study.

What is the Gold Rate Today in Uttarakhand?

The 22-carat gold rate in Uttarakhand today is ₹ 6760/gm of 22K gold. The 24-carat gold rate in Uttarakhand is ₹ 7098/gm of 24K gold as of 25th April 2024. 

Gold Rate in Uttarakhand For The Last 10 Days.

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

Historical Prices of the Gold Rate Today in Uttarakhand:

Here’s a peek into the 24k gold rates over the last 3 -months. 

Factors Affecting the Gold Rate in Uttarakhand

Final Price of Gold Jewellery

Local gold associations in various cities in Uttarakhand fix gold prices based on the gold rate set by the Indian Bullion Jewellers Association. IBJA takes into consideration the futures gold trading at MCX (Multi Commodity Exchange of India) and the gold rates fixed by the London Bullion Market Association every day in the morning. 

This price in turn affects the final price you pay to buy gold jewellery. Individual jewellers add making charges, depending on whether the ornament is machine or hand made, to the price of the jewellery. GST is then added to the commodity price and the services (making charges). So the final price can be calculated as: 

Gold weight in grams x the gold rate in Uttarakhand + Making charges (inclusive of 5% GST) + 3% GST on the jewellery price 

Reasons to Invest in Gold

• Gold is the only commodity that historically has been seen as not getting affected by inflation. Rather, it performs in tandem with inflation.
• Investment portfolio diversification helps you in reducing the risk of losing all your money during economic instability and market fluctuations.
• Unlike other conventional investment options, gold can be readily exchanged for liquid money. Even if you do not completely want to part ways with your gold stock, you can always avail of gold loans.
• Gold as a commodity is never going to get devalued because of its global demand. As a long-term investment, gold has always known to deliver healthy returns on investment.

Also Read: Steps to Calculate the Gold Price for Jewellery

Availing Gold Loans

Before we look into some of the long and short-term gold investment options, let’s look at how you can get a gold loan at current gold rates in Uttarakhand. Gold loans are basically requesting money from banks while keeping your gold with the bank for the said term of the loan as collateral.

Uttarakhand Gramin Bank Gold Loan

A Regional Rural Bank in Uttarakhand, UGB provides quick, hassle-free agricultural and personal gold loans to those from lower-income families. However, there is no restriction on any income group for the application of a loan. Below are the salient features of the gold loan services:

• Interest Rate: 7%
• Processing Fee: 1% of the principal amount
• Maximum Loan Amount: 20 lakh
• Loan Repayment Tenure: Up to 36 months
• Loan Prepayment Charges: 2% + GST if paid within 3 months, 0 after 3 months
• Gold Rate per gram: Between Rs 3506 and Rs 4621
• Loan to Gold Value: Up to 75%

Advantages of UGB Gold Loan:

1. Quick Disbursal: Because there is collateral involved, processing these loans requires minimal time. UGB gold loans can help you during any sort of financial emergency.
2.  Low-Interest Rate: The interest rate is low compared to other loans like a personal loan because there is a security deposit in the form of gold with the bank.
3. Safety of Ornaments: During the term of the loan, the bank is liable for the safety of your jewellery. You do not have to pay for the storage and security of your possessions.
4. No Income Bracket: The loan can be applied by anyone from any income group. There are no lower or upper-income limits.
5. Special Interest Rates for Farmers: If the loan is for agricultural purposes, special lower interest rates are applied.

Gold Investment Choices

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.

Gold Monetisation Schemes

Three gold-related schemes were introduced by the Government of India in 2015 -- Gold Monetisation Scheme (GMS), Gold Sovereign Bond Scheme, and India Gold Coin Scheme. These three gold schemes aim to limit gold imports and utilise at least 20,000 tons of gold held by Indian households and institutions to increase liquidity.

Comparative Analysis of Gold Versus Non-Gold (FD) Investment Options

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 Uttarakhand, 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?

Checklist for Buying Gold in Uttarakhand

Just to keep your investment safe, here’s what to check before you invest in gold.

• Purity, Hallmark and BIS Certification: These are important to check. Generally, the hallmark contains all details about the gold like BIS rating, company logo etc. The BIs rating certifies the gold’s purity as 24K/22K/18K.
• The daily gold rates: Gold rates can vary daily, across locations, and today’s gold rate in Uttarakhand can even vary at the jeweller’s shop. If trading on the stock market, follow the live rates. For jewellery, follow the IBJA rates. Digital gold follows the declared today’s gold rate in Uttarakhand per gram.
• Hidden costs: Gold jewellery purchases have many hidden costs. Always check for making charges ( 7 to 25%), stone and alloy rates as these fetch zero returns, GST @ 3% and be aware that storage costs can also add to the safe-keeping of gold in insurance costs.
• Buy-back conditions: Buy-back rates are very important to ensure the best returns on your investment. Jewellers may offer to buy it back at the day’s rates minus the stone weight etc, or exchange gold on a gram-to-gram basis. Also, remember white/rose gold has higher processing charges that load the buying price and are deducted from the selling price.

Types of Gold

22K, 24K and 18K Gold

Digital Gold

A digital gold investment instrument lets you invest in 24 Karat pure gold, which you own, and have stored in your own secure vault. You can exchange digital gold for 24 Karat gold coins and ingots that are the purest form while purchasing them online. You can start buying digital gold at the day’s price with as little as Rs 1/- on platforms like Khatabook digital gold which even sells fractions of gold units.  

Trading Digital Gold: 

Several mobile e-wallets allow you to buy digital gold. At present, digital gold is offered in India by platforms like KhataBook and a few big players.

You then perform the following steps on their platform:

1. Select the amount of gold you want to buy in INR or grams - You can buy gold by weight at the current gold rate in Uttarakhand or buy gold at a fixed price.

2. Choose a payment option - After completing KYC, you will be provided with multiple payment options including accounts, cards, and e-wallets.

3. Safe deposit of your gold - You can access your gold account at any time and it will be updated instantly.

4. Sell at any time – These platforms give you the option to sell your gold digitally at any time.

5. Physical Delivery of the Gold – If you are not planning to sell the gold, you can request to have the gold delivered to your home as coins or bars. Note: Delivery fees are applicable.

Where to Buy Gold in Uttarakhand

 Gold jewellery can be bought at today’s gold rate in Uttarakhand, across its major cities like Roorkee, Haridwar, Dehradun, Haldwani etc. Uttarakhand has a choice of jewellery stores. Take your pick. 

Conclusion

Use authentic sources to track the gold rate in Uttarakhand. In India, gold demand has risen since July 2019, and overseas purchases shot to 25.5T in July from the previous year’s 20.4T. Uttarakhand investors buy gold all year round and have more investors opting for digital gold when compared to last year. If investing in gold, buy from a trusted platform like Khatabook. Make smarter choices, refer to the daily prices and exploit the ease of digital gold purchases paid for by UPI, Net Banking at Khatabook.