Some facts about gold in Patan
Gold plays a significant role in the economy and culture of Patan. As both an investment and a symbol of wealth, gold holds immense value in the region. Understanding its price, purity, and various buying options is crucial for making informed decisions. This article will explore important aspects of gold in Patan, from pricing and purity to loan options.
Gold is an important asset in Patan, valued for both cultural and financial reasons. Key facts include:
Gold is an important asset in Patan, valued for both cultural and financial reasons. Key facts include:
- Local demand for gold – Gold is widely used for weddings and other significant cultural events.
- Goldsmith traditions – Patan boasts a long-standing tradition of skilled goldsmiths.
- Gold as an investment – Many prefer investing in gold as a hedge against inflation.
- Gold loan market – Patan has a growing gold loan market due to rising gold prices.
- Purity preferences – 22 carat gold is commonly preferred for jewellery in the region.
How is 22 carat gold different from 24 carat gold in Patan?
The difference between 22-carat and 24-carat gold lies primarily in their purity and usage:
- Purity: 22-carat gold contains 91.67% gold, while 24-carat gold is 99.9% pure.
- Use: 22-carat gold is often used for jewellery-making due to its durability.
- Value: 24-carat gold is more expensive because of its higher purity.
- Strength: 22-carat gold is stronger, making it suitable for intricate designs.
- Colour: 24-carat gold has a brighter yellow hue than 22-carat gold.
- Investment: People prefer 24-carat gold for investment due to its purity.
- Availability: Both 22-carat and 24-carat gold are easily available in Patan.
- Popularity: 22-carat gold jewellery is more popular in local markets.
22 karats vs 24 karats vs 18 Karats gold purity in Patan
In Patan, different gold purities are available, each suited for specific purposes:- 24 carat gold: The purest form with 99.9% gold content, used mainly for investment purposes.
- 22 carat gold: Contains 91.6% gold and 8.4% alloy, making it ideal for jewellery in Patan due to its durability.
- 18 carat gold: Contains 75% gold, making it more affordable and ideal for fashion jewellery that’s less prone to damage.
- Visual differences: Higher purity gold has a richer yellow colour, while lower purity tends to look duller due to alloy content.
- Cost variations: The higher the purity, the more expensive the gold, with 24 carat being the most expensive.
- Use: 18-karat is preferred for everyday jewellery, while 22 and 24-karat are reserved for special occasions.
- Availability: All three purity levels are available at jewellers in Patan.
How are gold prices determined in Patan?Gold prices in Patan are influenced by various factors, both global and local:
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International market trends
Global gold rates significantly influence local pricing.
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Currency exchange rates
Fluctuations in the rupee also impact gold prices.
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Demand and supply
Local demand during festivals increases the price.
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Import duties
Government policies and import duties can cause variations in price.
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Gold purity
The purity level also determines the final cost per gram.
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Why do gold rates change every day in Patan?
Gold rates in Patan are subject to daily changes, driven by several key factors.- Global market movements – Changes in international gold prices have an immediate effect.
- Rupee-dollar exchange rate – A weaker rupee leads to higher gold prices.
- Demand variations – Demand spikes during the festive season lead to price hikes.
- Central bank policies – Adjustments by central banks can shift gold rates.
- Inflation – Rising inflation makes gold an attractive option, increasing demand and price.
Techniques to check the purity of gold in Patan
Ensuring gold purity is crucial before making a purchase in Patan. The following techniques are commonly used:
- BIS hallmark: Ensures that the gold meets the required purity standards.
- Touchstone method: A traditional method used to check purity by rubbing gold on a stone.
- XRF technology: X-ray fluorescence provides an accurate reading of gold composition.
The impact of GST on gold rates in Patan
The introduction of GST has impacted gold prices across India, including Patan. Here's how:- GST rates: A 3% GST is levied on the value of gold purchases.
- Impact on buyers: GST makes gold slightly more expensive for consumers.
- Jewellery making charges: GST also applies to the making charges of gold jewellery.
- Investment impact: Investors in gold bars or coins also face higher costs due to GST.
- Price transparency: GST has standardised pricing across the country, reducing price disparities.
What are the different ways to buy/invest in gold in Patan?
Investing in gold offers security and growth. In Patan, there are various ways to do so. Here are the options:- Physical gold: Buying gold jewellery, coins, or bars is the most traditional way.
- Gold ETFs: Exchange-Traded Funds provide an option to invest in gold without holding it physically.
- Sovereign Gold Bonds: Issued by the government, they offer interest and are a safer investment.
- Digital gold: Online platforms allow buyers to invest in gold in small amounts.
- Gold futures: These contracts allow investors to speculate on future gold prices.
What are the taxes on gold in Patan?
Gold purchases in Patan are subject to various taxes. Knowing these helps in understanding the total cost of gold investments. Here are the applicable taxes:- GST: A 3% GST is applicable on gold purchases across India.
- Import duty: Gold imported into India attracts an import duty, which impacts prices.
- Capital gains tax: Gold sold after making a profit may attract capital gains tax, depending on the holding period.
- Wealth tax: Although abolished, gold holdings were once taxed under wealth tax laws.
- Tax on gold jewellery: Purchases of jewellery also attract a combination of GST and making charges.
What are the making charges on gold jewellery in Patan?
Making charges refer to the cost of crafting gold into jewellery. This is an essential factor to consider when buying gold in Patan:- Percentage of gold price – Making charges are often calculated as a percentage of the gold price.
- Fixed charges – Some jewellers charge a fixed making fee.
- Design intricacy – Intricate designs may have higher making charges.
- Bargaining scope – There is sometimes scope for negotiating the making charges.
- GST impact – Making charges also attract GST, increasing the overall cost.
Impact of gold rate on gold loans in Patan
Gold rates have a direct impact on gold loans, as the value of the pledged gold determines loan eligibility. Here's how:- Higher rates, higher loan amount: When gold prices rise, you can borrow more.
- Lower rates, lower loan value: A fall in gold prices means you may receive a smaller loan.
- Loan tenure: Gold loans are typically short-term, and fluctuations in gold rates affect loan repayments.
- Interest rates: Gold loan interest rates are influenced by market gold prices.
- Resale value: If a borrower defaults, lenders may sell the pledged gold based on current market rates.
Where to get gold loan in Patan?
With Bajaj Finserv Gold Loan, you can avail of loan amounts ranging from Rs. 5,000 to Rs. 2 crore, along with competitive interest rates and quick processing. Additionally, your gold is insured for free. Bajaj Finserv offers a high loan-to-value (LTV) ratio, ensuring you receive the maximum loan amount to comfortably manage your financial needs. The application process is simple, with minimal documentation and easy eligibility requirements. You also have the flexibility to repay the interest at intervals that suit your financial situation—monthly, bi-monthly, quarterly, half-yearly, or annually. With complimentary insurance and secure storage of your pledged gold jewellery, you can be assured that your gold is well-protected. These benefits make Bajaj Finance an ideal choice for securing a gold loan in Patan.Know more about gold rates in Indian states and Union Territories
Learn more about gold rates in other cities
Frequently asked questions
What is the current gold rate in Patan?
The current gold rate in Patan fluctuates daily and is influenced by global market trends, local demand, and currency exchange rates. Typically, the rate is provided per gram for 22-carat and 24-carat gold. To get the most accurate and up-to-date gold price, it is recommended to check with local jewellers or use reliable online platforms that track gold prices in Patan. Prices may also vary slightly due to local taxes and making charges.
How does the gold rate affect gold loan amounts in Patan?
The gold rate in Patan directly impacts the amount you can borrow through a gold loan. Lenders calculate the loan-to-value (LTV) ratio based on the current gold price. When the gold rate rises, the value of the pledged gold increases, leading to a higher loan amount. Conversely, if the gold price falls, the loan amount sanctioned may be lower, as the collateral’s value decreases accordingly.
Why does the gold rate fluctuate in Patan?
Gold rates in Patan fluctuate due to several factors, including international market trends, the value of the Indian rupee against the US dollar, and local demand for gold, especially during festivals and weddings. Additionally, changes in government policies, such as import duties and taxes, affect the price of gold. Economic conditions, inflation, and global geopolitical events can also contribute to daily fluctuations in the gold rate in Patan.
What is 916 KDM gold, and how is it priced in Patan?
916 KDM gold refers to 22-carat gold, containing 91.6% purity, with KDM indicating the use of cadmium in the alloying process. It is commonly used in jewellery due to its durability and purity. The price of 916 KDM gold in Patan is determined by the current market rate for 22-carat gold, influenced by global gold prices, local demand, and taxes. For the exact price, check with local jewellers or reliable online platforms.
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