Some facts about gold in Kollam
Kollam, a coastal city in Kerala, is renowned for its rich history in trade and culture. Gold plays a significant role in Kollam's economy, with the city being a hub for jewellery businesses. Gold holds cultural importance, especially during weddings and traditional festivals, symbolising wealth and prosperity. Many families in Kollam invest in gold as a long-term asset, making it an essential part of the city's economy and tradition. Here are a few facts about gold in Kollam:
Kollam is renowned for its traditional gold craftsmanship, with numerous goldsmiths excelling in intricate jewellery designs.
The city has a significant demand for gold during festivals like Onam and Vishu, where buying gold is seen as auspicious.
Kollam hosts several reputed gold retailers that offer certified gold with accurate purity standards.
Both 22 carat and 24 carat gold are commonly traded in Kollam, catering to different customer needs.
Many residents of Kollam invest in gold as a stable and long-term asset due to the city’s cultural affinity towards gold.
Kollam’s gold market is influenced by the larger trends in Kerala and international gold prices.
Goldsmithing in Kollam is often passed down through generations, preserving the city’s rich heritage in gold craftsmanship.
Kollam is renowned for its traditional gold craftsmanship, with numerous goldsmiths excelling in intricate jewellery designs.
The city has a significant demand for gold during festivals like Onam and Vishu, where buying gold is seen as auspicious.
Kollam hosts several reputed gold retailers that offer certified gold with accurate purity standards.
Both 22 carat and 24 carat gold are commonly traded in Kollam, catering to different customer needs.
Many residents of Kollam invest in gold as a stable and long-term asset due to the city’s cultural affinity towards gold.
Kollam’s gold market is influenced by the larger trends in Kerala and international gold prices.
Goldsmithing in Kollam is often passed down through generations, preserving the city’s rich heritage in gold craftsmanship.
How is 22 carat gold different from 24 carat gold?
22 carat gold contains 91.6% pure gold mixed with other metals, making it more durable, whereas 24 carat gold is 99.9% pure, softer, and ideal for investment purposes but less suitable for jewellery. Here’s how 22 carat gold differs from 24 carat gold:
22 carat gold contains 91.67% pure gold, with the rest made up of other metals like silver or copper.
24 carat gold is 99.99% pure, making it the highest purity form of gold available.
22 carat gold is commonly used in jewellery due to its durability, as pure gold is soft and malleable.
24 carat gold is generally used in coins, bars, and investment purposes, rather than jewellery.
22 carat gold has a slightly more reddish-yellow appearance compared to the bright yellow of 24 carat.
The price of 24 carat gold is usually higher than 22 carat gold due to its higher purity.
22 carat gold is ideal for daily wear, while 24 carat gold is more suitable for storing value.
22 carat gold contains 91.67% pure gold, with the rest made up of other metals like silver or copper.
24 carat gold is 99.99% pure, making it the highest purity form of gold available.
22 carat gold is commonly used in jewellery due to its durability, as pure gold is soft and malleable.
24 carat gold is generally used in coins, bars, and investment purposes, rather than jewellery.
22 carat gold has a slightly more reddish-yellow appearance compared to the bright yellow of 24 carat.
The price of 24 carat gold is usually higher than 22 carat gold due to its higher purity.
22 carat gold is ideal for daily wear, while 24 carat gold is more suitable for storing value.
22 carats vs 24 carats vs 18 carats gold purity in Kollam
In Kollam, gold plays a significant role in both cultural and financial contexts, with different gold purities serving distinct purposes.- 22 carat gold contains 91.6% pure gold, with the remaining 8.4% consisting of alloyed metals like silver, zinc, or copper. This blend gives the gold extra strength, making it perfect for crafting intricate jewellery worn daily, especially for weddings and religious ceremonies. In Kollam, 22 carat gold is a popular choice for its balance of purity and durability.
- 24 carat gold is 99.9% pure, making it the highest form of gold available. However, due to its softness, it is not ideal for making jewellery. Instead, it is often used for gold coins, bars, and other forms of investment. People in Kollam often buy 24 carat gold for long-term savings or gifts during special occasions.
- 18 carat gold contains 75% pure gold mixed with 25% other metals, making it even more durable but less valuable than 22 or 24 carat gold. In Kollam, this gold type is chosen for modern, lightweight jewellery designs, especially among younger buyers seeking affordability and style.
How are gold prices determined in Kollam?Here are some common factors that determine the price of gold:
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Global factors
Gold prices in Kollam are influenced by global market trends, including international demand and supply.
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Currency
The value of the Indian rupee against foreign currencies also affects the price of gold in Kollam.
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Local demand
Local demand during festive seasons and wedding occasions often drives short-term fluctuations in Kollam’s gold prices.
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Government policies
The Reserve Bank of India’s policies on gold import duties impact the overall price structure in Kollam.
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Economic factors
Economic factors like inflation, interest rates, and global geopolitical tensions can influence gold prices in Kollam.
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Why do gold rates change every day in Kollam?
The gold price in Kollam is influenced by various factors:
Global market fluctuations, including changes in the US dollar value and international gold prices, impact Kollam’s gold rates.
Demand and supply dynamics in the Indian gold market, including festival-driven purchases, cause daily price changes.
Economic indicators like inflation rates and changes in interest rates affect investor demand for gold, leading to daily rate adjustments.
Variations in import duties and government policies can alter the daily gold prices in Kollam.
The fluctuating value of the Indian rupee against major currencies, such as the US dollar, influences daily gold prices.
Local factors, including regional festivals, weddings, and gold purchases in Kollam, can lead to short-term gold rate changes.
Techniques that check the purity of gold in Kollam
Here are a few techniques used to test the ourity of gold in Kollam:
Acid test: A small drop of acid is applied to gold to check its reaction and determine purity levels.
Electronic testing: In Kollam, jewellers often use electronic devices that measure gold’s electrical conductivity to assess its purity.
X-ray fluorescence: This method is used by top jewellers in Kollam to test the gold’s surface without damaging it, providing accurate purity readings.
Fire assay: Considered the most reliable method, this technique involves melting gold and measuring the purity, although it’s less commonly used in everyday jewellery shops.
Hallmark certification: In Kollam, most reputed gold sellers provide BIS Hallmarked jewellery, which guarantees a specific purity level.
Ultrasound testing: This advanced technique is employed to check for any inconsistencies in the gold’s composition.
Local demand during wedding seasons and major festivals like Onam significantly influences gold price trends.
Changes in government policies, including gold import duties, affect gold price predictions in Kollam.
Global geopolitical tensions and economic instability often lead to a surge in gold prices due to increased demand as a safe investment.
Trends in the international stock market, especially in countries that influence the global economy, impact predictions for Kollam’s gold prices.
Financial experts also analyse the Reserve Bank of India’s monetary policy changes to anticipate gold rate movements.
GST is levied at 3% on the value of gold, which increases the final price for customers in Kollam.
Additional GST on making charges further inflates the cost of gold jewellery in Kollam.
Since GST applies to both gold purchases and services like making charges, it has a direct impact on the overall gold pricing.
The uniform application of GST has made it easier to compare gold prices across different cities, including Kollam.
Jewellers in Kollam incorporate GST into their final pricing, making it an essential factor in gold purchasing decisions.
Gold ETFs: Investors in Kollam can opt for gold exchange-traded funds, which allow gold investment without holding the physical metal.
Sovereign gold bonds: Issued by the Government of India, these bonds are a popular investment option in Kollam, offering interest and capital appreciation.
Gold savings schemes: Many jewellers in Kollam offer gold savings plans, where customers can invest periodically and purchase gold after a fixed term.
Digital gold: Some residents of Kollam prefer to invest in digital gold, allowing them to buy and sell gold online without physical possession.
Gold futures: Advanced investors in Kollam may also trade in gold futures, speculating on future gold prices to gain profits.
Making charges GST: A GST of 5% is levied on the making charges for gold jewellery, further increasing the final price.
Customs duty: Kollam follows the national customs duty on imported gold, which currently stands at approximately 10.75%.
Wealth tax: While wealth tax on gold was abolished in India, large gold holdings may still attract scrutiny under other financial regulations.
Capital gains tax: Gold investments in Kollam are subject to capital gains tax if sold for profit, with different rates depending on the holding period.
TDS (Tax Deducted at Source): Large gold transactions may require TDS, especially for purchases over Rs. 50,000 in cash.
Fixed rate: Some jewellers in Kollam offer fixed-rate making charges, especially for simpler designs or mass-produced jewellery.
Complexity of design: The more intricate the jewellery design, the higher the making charges in Kollam, as these pieces require more skilled craftsmanship.
Machine-made vs. handcrafted: Machine-made jewellery in Kollam incurs lower making charges compared to handcrafted pieces, which involve more labour.
Negotiability: Many jewellers in Kollam allow customers to negotiate the making charges, especially for larger purchases or during festive seasons.
GST on making charges: A 5% GST is also added to the making charges, further increasing the total cost of gold jewellery.
Borrowers benefit from rising gold prices, as they can avail higher loan amounts against the same quantity of gold.
Falling gold rates reduce the value of the loan that can be availed, impacting those who need immediate financial assistance.
Loan-to-value (LTV) ratios offered by lenders in Kollam are adjusted based on gold price fluctuations, affecting the loan terms.
Repayment amounts for gold loans may also be influenced by changing gold rates, depending on the lender’s policies.
Gold price volatility in Kollam can make it challenging for borrowers to predict the exact loan amount they can secure.
Acid test: A small drop of acid is applied to gold to check its reaction and determine purity levels.
Electronic testing: In Kollam, jewellers often use electronic devices that measure gold’s electrical conductivity to assess its purity.
X-ray fluorescence: This method is used by top jewellers in Kollam to test the gold’s surface without damaging it, providing accurate purity readings.
Fire assay: Considered the most reliable method, this technique involves melting gold and measuring the purity, although it’s less commonly used in everyday jewellery shops.
Hallmark certification: In Kollam, most reputed gold sellers provide BIS Hallmarked jewellery, which guarantees a specific purity level.
Ultrasound testing: This advanced technique is employed to check for any inconsistencies in the gold’s composition.
Predicting gold prices in Kollam
Global economic indicators, including inflation and currency fluctuations, play a key role in predicting future gold prices in Kollam.Local demand during wedding seasons and major festivals like Onam significantly influences gold price trends.
Changes in government policies, including gold import duties, affect gold price predictions in Kollam.
Global geopolitical tensions and economic instability often lead to a surge in gold prices due to increased demand as a safe investment.
Trends in the international stock market, especially in countries that influence the global economy, impact predictions for Kollam’s gold prices.
Financial experts also analyse the Reserve Bank of India’s monetary policy changes to anticipate gold rate movements.
The impact of GST on gold rates in Kollam
The implementation of GST has standardised taxes on gold across Kollam, reducing the impact of localised tax discrepancies.GST is levied at 3% on the value of gold, which increases the final price for customers in Kollam.
Additional GST on making charges further inflates the cost of gold jewellery in Kollam.
Since GST applies to both gold purchases and services like making charges, it has a direct impact on the overall gold pricing.
The uniform application of GST has made it easier to compare gold prices across different cities, including Kollam.
Jewellers in Kollam incorporate GST into their final pricing, making it an essential factor in gold purchasing decisions.
What are the different ways to buy/Invest in gold in Kollam?
Physical gold: Purchasing 22 carat or 24 carat gold jewellery or coins from trusted retailers is a common practice in Kollam.Gold ETFs: Investors in Kollam can opt for gold exchange-traded funds, which allow gold investment without holding the physical metal.
Sovereign gold bonds: Issued by the Government of India, these bonds are a popular investment option in Kollam, offering interest and capital appreciation.
Gold savings schemes: Many jewellers in Kollam offer gold savings plans, where customers can invest periodically and purchase gold after a fixed term.
Digital gold: Some residents of Kollam prefer to invest in digital gold, allowing them to buy and sell gold online without physical possession.
Gold futures: Advanced investors in Kollam may also trade in gold futures, speculating on future gold prices to gain profits.
What are the taxes on gold in Kollam?
GST: A 3% Goods and Services Tax (GST) is applicable on gold purchases in Kollam, which is added to the cost of the gold.Making charges GST: A GST of 5% is levied on the making charges for gold jewellery, further increasing the final price.
Customs duty: Kollam follows the national customs duty on imported gold, which currently stands at approximately 10.75%.
Wealth tax: While wealth tax on gold was abolished in India, large gold holdings may still attract scrutiny under other financial regulations.
Capital gains tax: Gold investments in Kollam are subject to capital gains tax if sold for profit, with different rates depending on the holding period.
TDS (Tax Deducted at Source): Large gold transactions may require TDS, especially for purchases over Rs. 50,000 in cash.
What are the making charges on gold jewellery in Kollam?
Percentage-based: In Kollam, making charges are typically calculated as a percentage of the gold's weight, usually ranging from 8% to 20%.Fixed rate: Some jewellers in Kollam offer fixed-rate making charges, especially for simpler designs or mass-produced jewellery.
Complexity of design: The more intricate the jewellery design, the higher the making charges in Kollam, as these pieces require more skilled craftsmanship.
Machine-made vs. handcrafted: Machine-made jewellery in Kollam incurs lower making charges compared to handcrafted pieces, which involve more labour.
Negotiability: Many jewellers in Kollam allow customers to negotiate the making charges, especially for larger purchases or during festive seasons.
GST on making charges: A 5% GST is also added to the making charges, further increasing the total cost of gold jewellery.
Impact of gold rate on gold loans in Kollam
Gold loans in Kollam are directly affected by the current market gold rates, as higher rates lead to a higher loan amount per gram of gold.Borrowers benefit from rising gold prices, as they can avail higher loan amounts against the same quantity of gold.
Falling gold rates reduce the value of the loan that can be availed, impacting those who need immediate financial assistance.
Loan-to-value (LTV) ratios offered by lenders in Kollam are adjusted based on gold price fluctuations, affecting the loan terms.
Repayment amounts for gold loans may also be influenced by changing gold rates, depending on the lender’s policies.
Gold price volatility in Kollam can make it challenging for borrowers to predict the exact loan amount they can secure.
Where to take gold loan in Kollam?
For those seeking financial assistance, a gold loan in Kollam is a viable option. We offer attractive gold loan rates and flexible repayment options. The gold loan eligibility criteria are straightforward, primarily based on the value and purity of the gold pledged. Our transparent process ensures quick disbursement of funds, making it convenient for borrowers. The gold and loan process is secure, with the pledged gold stored safely until the loan is repaid. Residents can approach us for reliable and efficient gold loan services, ensuring they get the best value for their gold assets.Learn about gold rates in Indian States and Union Territories
Discover gold rates in other cities
Frequently asked questions
How much is 8 grams of gold in Kollam today?
The price of 8 grams of gold in Kollam today depends on the current market rate for 24 carat and 22 carat gold. As of today, if the rate for 24 carat gold is ₹5,500 per gram, 8 grams would cost ₹44,000. For 22 carat gold, if the rate is ₹5,200 per gram, 8 grams would cost ₹41,600. These rates are influenced by market fluctuations, global economic factors, and local demand in Kollam.
Where can I find the best gold loan in Kollam?
In Kollam, you can find one of the best gold loan options with Bajaj Finance. You can benefit from competitive interest rates, multiple repayment options, quick disbursal and much more.
How does the gold rate in Kollam affect gold loan amounts?
The gold rate in Kollam directly impacts the amount you can secure through a gold loan. Higher gold prices mean you can borrow a larger amount for the same quantity of gold, as the loan amount is calculated based on the current market value. Conversely, when gold rates fall, the loan amount per gram decreases. Lenders in Kollam adjust the loan-to-value (LTV) ratio according to the gold price fluctuations, affecting the final amount you can borrow.
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