Gold Rate Today in Pondicherry - 22 Carat and 24 Karat Gold Price in Pondicherry (19th April 2024)

Gold is one of the few precious metals that will always be valuable. Although gold prices change regularly, they have historically shown an upward trend. This blog presents some facts about the gold market of Pondicherry, the historical and current gold rate in Pondicherry and variables influencing the gold price, physical and digital gold. It also presents places in Pondicherry to buy authentic gold so that you can make an informed decision while purchasing.

Importance of Gold

For millennia, gold has been an ideal investment because of its ever-increasing value, rapid security for loans, and asset for financial crisis management. In recent years, there has been an increase in the number of gold investors due to its consistency in value compared to other types of investments. Gold has tripled in value over the last five years, representing a significant gain for all long-term investors. The price of gold will continue to rise due to a multitude of factors, including lower production, scarcity of natural resources, rising demand from increased purchasers, and the use of gold as an investment metal rather than a metal for jewellery creation.

Geography of Pondicherry 

Pondicherry's (or Puducherry) main sources of income are agriculture and tourism. Pondicherry is divided into four districts: Karaikal, Mahe, Puducherry, and Yanam. While Tamil Nadu surrounds Puducherry and Karaikal, Yanam on the west coast of Kerala is surrounded by Andhra Pradesh and Mahe. A manufacturing facility in a UT provides various tax advantages to businesses. Although the operation of a Union Territory frequently comes with a set of perks such as cheaper cess and tariffs, the gold prices in each of these districts correlate to the neighbouring geography. 

Also Read: Steps to Calculate the Gold Price for Jewellery

Gold Rate in Pondicherry  

24 Karat gold rates in Pondicherry are standardised across four districts and most associations and jewellers base their prices on the rate of gold's lending price. Rates for 24 Karat gold might occasionally be lower than in neighbouring metropolitan cities such as Chennai or Hyderabad. The prescribed rates proposed by the Chennai-based Madras Jewelry Manufacturer Association also influence the 22 Karat gold rate in Pondicherry.  

Jewellers usually calculate the 22 Karat gold rates in Pondicherry. The prices may vary slightly between neighbouring jewellers due to factors like making charges, wastage, melting charge, refiner profits, and even differences in impurity costs (Nickel, Aluminum, Palladium, Silver, Iron). Transportation, logistics, security expenses, changes in business operations, and, eventually, business margins are all aspects to consider.

Current Gold Rate in Pondicherry last 10 days

The Historical Gold Rate in Pondicherry 

Gold rates in Pondicherry can fluctuate at least twice every day. Because gold required for jewellery manufacturing needs to be imported, these rates are usually calculated from international standards.

Measurement of Gold

Gold is weighed in grams or troy ounces (1 troy ounce = 31.1034768 gram).

What is a Karat?

The term Karat denotes the purity of gold. It is a measure of fineness or purity. It refers to the proportion of an alloy mixed with gold, such as copper. Because pure gold is exceedingly soft, it must be alloyed with another metal before it is used to make jewellery, etc.

24K gold, often known as 24 Karat gold, is 100% gold. The fineness scale used to define the purity of gold is as follows:

24 K = 99.9% Pure

22 K = 91.3% Pure

18 K = 75% Pure

14 K = 58.5% Pure

10 K = 41.7% Pure

Buying Gold in Pondicherry

In Pondicherry, prominent streets for purchasing gold and jewellery include Nehru Street, Kosakadai Street, Bharathi Street, and Kamaraj Salai. Tanishq, Joy Alukkas, Lalitha Jewellery, and Khazana jewellery are some of the most well-known brands in Pondicherry. The Siva Valli Vilas Jewelers, founded in 1929, and Sri Lakshmi jewellery, founded in 1936, are legacy jewellers in Pondicherry. Jewellers in Karaikal can be found on Bharathiyar Street and Thirunallar Road. Rathna jewellery, Sri Lakshmi Jewellery, Fathima Thanga Maligai, and Raghava jewellery are local names you can trust. When purchasing jewellery, it is recommended to collect invoices and ensure hallmark certification. 

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

Investing in Gold in Pondicherry

Gold is largely purchased in Pondicherry as a relatively safe investment that has witnessed tremendous gains in the past. Even though Indians participate in other investment channels like fixed deposits, real estate, gold investing remains a substantial element of the investment portfolio. Gold can be bought as physical gold or digital gold.

Physical Gold Includes

Jewellery- Buying gold jewellery is still the most popular way to invest in gold in Pondicherry. People of all economic classes acquire gold on festive and significant occasions since it is seen as a secure and straightforward investment. The one downside of purchasing gold jewellery is that you must pay for the making charges, which may add up to an additional 10% to the price.

Gold Coins- This is the most popular way to own gold. The rates are determined by their weight as well as supply and demand. The gold coins will be available in a variety of weights. You can return the gold coin to the jeweller. Banks sell gold coins as well, but they will not repurchase them from you. Gold coins are traditionally thought to be auspicious. Hence purchasing gold coins based on Pondicherry gold rates from various places might be advantageous in the long term when one wants to liquidate.

Gold bars- They are the most conventional form of gold investment. They can also be traded on international marketplaces.

Digital Gold Includes:

Gold Funds- You can invest in mutual funds, such as funds of funds (FOF) that hold units in other gold-related funds. Alternatively, you might invest in a fund that invests in gold firms that are publicly traded on global stock exchanges. Gold can be invested in as an open-ended fund with the SBI Gold Fund. The investment is in SBI Gold Exchange Traded Schemes units. 

ETF- Individuals in Pondicherry who want to invest in gold can do so by purchasing Exchange Traded Funds (ETFs). Gold ETF investments may now be made online, changing how gold is purchased and providing gold investments with a whole new dimension. Each ETF unit is worth one gram of gold. They gain popularity since they have a few advantages over purchasing physical gold such as jewellery or coins.

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

• ETFs are traded on the stock exchange, they are easy to purchase and sell, and there are no liquidity difficulties.
• If you keep it for more than a year, you may be eligible for tax breaks.
• You do not need to be concerned about the physical safety of the gold asset or storage difficulties. Because the ETFs are held in electronic form in the Demat account, there is no risk of theft.

Most investors in gold ETFs do so because of the instrument's high liquidity as well as the ease and simplicity of investing in it.

Digital Gold- A New Concept

Gold can be purchased in three forms- 

• Physical form where it can be purchased from a jewellery shop
• Bond form where investing can be done instead of the physical purchase of gold for better returns
• Digital gold is an electronic certificate where gold can be bought and sold by avoiding unnecessary cost.

Online platforms such as Khatabook are an excellent example of Digital Gold. You are able to buy or sell any amount of Gold since this electronic certificate is backed by physical gold. Most importantly, you can get the actual delivery of the gold.

How to buy gold in Pondicherry?

Investing in gold may be an expensive business, so keep the following points in mind before making a purchase.

• Research gold rates: Gold prices fluctuate daily; therefore, it is critical to monitor market trends and stay updated. It will assist you in making an educated decision regarding when to buy or sell.
• Decide what to buy: Gold is available in many forms, including jewellery, bars, coins, and gold stocks. Each kind has its own set of benefits and drawbacks. If you intend to sell the gold later, jewellery may not be the best solution, and you should consider other forms of gold investment.
• Ensure Certification: Certification of purity is the most crucial factor to consider when investing in gold. Some laboratories known as Assaying and Hallmarking Centers are authorized to certify the purity of gold; jewellers are not authorized to confirm the purity. Only jewellers licensed by the BIS (Bureau of Indian Standards) can get their jewellery validated at these Assaying Centers. 
• Online purchase: Today, there are many online gold vendors. Though online purchase is convenient, one must be very careful to only buy from trusted certified dealers because there is a high risk of cheating and adulteration. Buy from trusted online platforms such as Khatabook. 
• Invoice: Most essential, at the time of purchase, make sure to obtain a bill from the seller. An invoice will help you take any action if the gold is impure or lacks the supplier's quality.

How to sell gold?

It is not difficult to sell gold in Pondicherry because most jewellers and dealers are willing to buy it. However, the gold ornaments may sell for less than planned because jewellers only pay for the weight of gold, not the design. Selling prices do not include the making charges added at the time of purchase.  You must be aware of the current gold rate in Pondicherry and the weight of the gold you intend to sell to get the best rate. Before making a decision, it is best to obtain estimates from several buyers. 

It is always a better idea to sell gold bars and coins rather than jewellery because they fetch higher prices from jewellers.

A gold loan against your jewellery is also an option when there is an urgent need for money. Banks and other non-banking financial institutions (NBFCs) provide gold loans at excellent interest rates. Because your gold is used as collateral, there is less documentation required, and the approval and loan disbursement procedure is easy. Therefore, knowing the gold rate today at 22K in Pondicherry can aid in this process. 

Factors Affecting Gold Price In Pondicherry

The following are some of the factors that influence the price of gold in Pondicherry.

Seasonal demand: Gold demand in Pondicherry tends to soar during auspicious festivals, marriage seasons, and other occasions, resulting in higher prices.

Strength of the US Dollar: A strong US dollar implies that gold rates in Pondicherry are falling as investors prefer to invest in the currency rather than the commodity. On the other hand, banks tend to invest in gold rather than the depreciating dollar when the dollar falls in value. This action is being taken to protect against potential risks; due to the increase or decrease in demand, the price of gold changes.

Fixed Deposit interest rates: Fixed deposits have long been a preferred choice for Indians regarding investment. Gold comes in second place. When interest rates on government bonds decline, investors prefer to invest in gold as an alternative investment choice. When the demand rises, the price of gold rises as well.

Economic stability: The price of gold tends to rise during economic downturns since it is considered a stable asset. Investors are shifting their funds away from riskier investments and into gold. Gold also has the virtue of being highly liquid, and it retains its value in times of uncertainty.

Inflation: During times of inflation, the price of gold tends to rise. Because gold is purchased as a hedge against inflation, the spiralling trend raises the price of gold.

Local factors: 

The 916 gold rate in Pondicherry might vary between cities. The following are the primary reasons for variances in domestic gold prices:

• Transportation cost

The majority of the gold in Pondicherry is imported. As a result of the expense associated with precious metal shipping, port cities such as Mumbai and Chennai tend to have slightly cheaper costs than cities located far from the port.

• State taxes

Different states pay different taxes, resulting in pricing differences between states.

Conclusion

In today's competitive market, investing in gold can prove to be a worthwhile investment. Having a solid financial portfolio can enhance your wealth, due to which knowing the gold rate in Pondicherry today is important. 

So, make smart decisions today by using trustworthy platforms like Khatabook for your investments.