As the festive season of Diwali approaches, a long-standing tradition in India sees many individuals preparing to purchase gold for auspicious reasons. Many people strategically postpone their buying decisions for several months leading up to the festival, largely due to the 15-day period of Shraddh. This period, observed before Navratri, is considered inauspicious for acquiring assets across many regions in India. Consequently, from the beginning of Shraddh, also known as Pitra Paksha, until the auspicious occasion of Dhanteras, consumers typically delay their gold purchases. This yearly pattern results in a noticeable spike in demand during Diwali, leading to a slight increase in gold prices.
As of October 11, 2024, the Indian Bullion and Jewellers Association (IBJA) reported retail selling rates for gold jewellery as follows: Fine Gold (999) 24-karat is priced at Rs 75,620 per 10 grams, while 22-karat gold is at Rs 73,810 per 10 grams. For those interested in lower purities, 20-karat gold is available at Rs 67,300 per 10 grams, 18-karat gold at Rs 61,250 per 10 grams, and 14-karat gold at Rs 48,780 per 10 grams.
In this article, we will examine the rates of 22-karat gold offered by some of India’s leading jewellers in anticipation of Dhanteras and Diwali. The prices of gold can differ from one outlet to another and from city to city, making it essential to focus on 22-karat gold, which is the most commonly used purity for jewellery. Specifically, 22-karat gold has a purity of 91.6%, in contrast to 18-karat gold, which has 75% purity, and 14-karat gold, with a purity of 58.33%.
Current 22-Karat Gold Rates from Leading Jewellers
As of October 12, 2024, we have compiled the prices for 22-karat gold from five prominent jewellery brands in India, selected based on their popularity. The rates listed reflect prices from both physical stores and official websites.
PC Jewellers: Rs 71,700 per 10 grams
Malabar Gold and Diamonds: Rs 71,200 per 10 grams
Joyalukkas: Rs 71,200 per 10 grams
Kalyan Jewellers: Rs 70,950 per 10 grams
Reliance Jewels: Rs 70,730 per 10 grams
Understanding Gold Jewellery Pricing
The final price of gold jewellery includes several additional charges beyond the base gold price, such as Goods and Services Tax (GST) and making charges. Making charges can range from 10% to 40% depending on the complexity and type of the jewellery piece.
Formula Used by Jewellers to Determine Final Price: Final price of jewellery = {Price of gold x (Weight in grams)} + Making charges + GST (3%).
Some jewellers may also apply hallmarking charges, fixed at Rs 45 per piece, in addition to GST.
What Is Hallmarking?
Hallmarking is a regulatory measure aimed at safeguarding consumers from fraud when purchasing gold or silver jewellery. Each piece of hallmarked jewellery is stamped with a unique six-digit alphanumeric code known as the Hallmark Unique Identification (HUID) number. This number can be verified for authenticity using the “Verify HUID” feature in the BIS Care app, ensuring customers receive the quality they expect.
As the festive season draws near, these insights into gold pricing and the importance of hallmarking can help consumers make informed purchasing decisions while embracing the auspicious traditions of Diwali.
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