Due to the Corona virus, markets are seeing a decline in the coming days. The stock market witnessed a significant fall in the past day. Investors have sold gold to recover from losses after the stock markets fell due to business activities, and internationally, gold prices fell 5 percent. Earlier in 2013, Saina saw such a huge drop in prices. After this decline, gold in the domestic market may now be cheaper. In the last week, gold has become cheaper than Rs 1000 per ten grams in three days. Further, prices may fall by up to Rs 3000 per ten grams.
What is the price of gold and silver today?
-Sona 10g 24 Carat-42,810.00
- Silver 43,556 per kg
Bloomberg reports
Gold fell 4.5 per cent to $ 1,571 an ounce on Friday, according to a Bloomberg report. This is the biggest fall since June 2013. At the same time, the prices of silver and palladium have declined since 2008.
Who decides these prices
Demand and supply is an important factor in determining gold prices. When demand is high and supply is low, its prices go up. Gold is an administrative unit for fixing prices which works internationally and nationally. This organization, together with the national level organizations associated with governments of all the countries of the world, jointly decides what the gold price should be.
Who decides the price of gold in India?
MCX (Multi Commodity Exchange) regulator sets gold prices in India. This organization does this by taking into account the demand-supply, international market and market conditions (inflation or deflation) in the Indian market. It also talks with the London Bullion Market Association (LBMA) for this.
How do jewelers decide rates?
We are trying to illustrate this with an example. Let's learn how to rate gold when you go to a jewelry showroom to buy gold.
Last Price of Jewelery = Gold Price (22carat or 18carat) Weight in X grams + ie 3% GST on making charge + (cost of jewelery + making charge)
Suppose the price of 24 karat gold is going up above Rs 39 thousand per 10 grams and the goldsmith imports 22 grams of purity 10 grams of gold at Rs 3750. If you have to buy 9.6 grams of gold chain, its rate will be as follows.
Price of 1 gram Gold: 3750
Price of 9.60 grams Gold Chain: 3750 X 9.60 = Rs 36000
Making Charges (assuming they are 10%): 10% of 36000 = Rs 3600
Total rate so far = 36000 + 3600 = 39,600 Rs
3% GST = Rs 1188 at Rs 39600
The final value of the gold chain = Rs 40,788
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