Gold rates on Oct 8: 14K, 18K, 22K and 24K explained

Gold rates in India

When you go into a jewellery store or look at prices on the Internet, you will often be quoted prices with 22K and 24K gold very prominently indicated. Those are the most common purities you will get in India, although gold is also present in 14K or 17K. The karat refers to the percentage of gold that the piece contains. While the 24K is virtually pure, the 22K is a small percentage of other metals combined, and the 14K or the 17K contain even less gold. The lower the karat, the lower the intrinsic value per gramme, although the hardness may be higher.

Current market situation in karats

On October 8, the price of 24K gold was at Rs 12,180 per gramme; for the 22K variety, the price was Rs 11,888 per gramme; for 18K gold, it was Rs 9,866, for 20K it was at Rs 10,840 and for 14K, the rate was Rs 7,856 per gramme, according to the India Bullion and Jewellers Association. These rates are without GST or making charges.

The unaccounted spending on the gold price

The quoted price per gramme is only one part of the cost that you pay. Jewellers also charge making charges, design premiums, GST and sometimes TCS, especially on costly purchases. That is why two stores could charge very differently for the same purity. For the lower karats like 14K and 17K, there can be high mark-ups as well, as there is little demand and these are imported or specially alloyed.

How foreign markets determine Indian rates

Indian gold prices have a link with the worldwide market. More demand in foreign countries, currency or central bank purchasing can all lead to a rise in prices in India. Dollar-rupee exchange rates also play a large role in all of this. Prices are updated on a daily basis, and may differ from one city in India to the next, the difference in local demand and supply creating tiny fluctuations.

Do you want to purchase 14K or 17K gold in India?

The majority of Indian customers opt for a 22K piece for regular wear or a 24K one as an investment in coins and bars. For budget-friendliness or foreign designs, a 14K or 17K if more popular, although their resale price is typically lower. In such a situation, checking for BIS hallmarking is particularly critical, as well as making sure the article has a legitimate HUID number that confirms purity.

What today's purchasers must keep in mind

Before you make a purchase on this festive season, use the prices that have been published as a guide, but don't stop there. Always ask for a breakdown in purity, labour charges and tax. Also, check the hallmark before making the payment, especially if you are making the purchase on a karat not very commonly transacted on India. For purchasing gold in 14K, 17K, 22K or 24K, making an informed decision provides you with value as well as peace of mind.