Today's Gold Rate in Mumbai

Key Considerations for Gold Investment in Mumbai

When purchasing gold in Chennai, it's important to consider the following factors: 

Purity - Gold purity is now measured in karats, with 24 karat gold having a purity of 99.9% and 22 karat gold having a purity of 92%. Each karat of gold contains 4.2% pure gold, so 14 and 18 karat gold contain only 58.33% and 75% pure gold, respectively. Jewelers typically use 14, 18, or 22 karat gold for jewelry since 24 karat gold is too soft. Always ensure the gold's purity before purchasing, preferably by buying hallmarked jewelry that has been certified by reputable agencies. Hallmarking signifies the gold's purity. 

Weight of Gold - Most gold jewelry sold in India is weighed and priced accordingly. Jewelry with precious stones like diamonds and emeralds tends to be heavier and thus costlier. Remember that each piece of jewelry is weighed separately by the jeweler. 

Identification Mark - Gold purity is certified by the Bureau of Indian Standards (BIS), which authenticates its purity through its assaying centers. The purity level, along with the merchant's name, is then engraved on the gold item to prevent deception. However, BIS has limited reach with approximately 331 assaying centers nationwide, so exercise caution when buying gold jewelry. 

Making Charges - To cover the labor costs involved in making jewelry, all jewelers impose making charges. Thus, making charges can vary depending on the gold price. These charges typically range from 6% to 14%. Machine-made or minimally designed jewelry may have lower making charges. Some jewelers offer fixed making charges for bulk orders. Additionally, jewelry with exceptional designs may cost up to 25% more than the current gold price. 

Sales Invoice - Some jewelers may provide a cash memo instead of an invoice, which may lack legal weight in case of disputes. Always request an official invoice containing the retailer's name, address, VAT, and TIN. Ensure all purchase details are correct and comprehensive. You can also ask for a purity certificate or guarantee, though some jewelers may charge a fee for this. Lastly, carefully review the jeweler's exchange and return policies. 

How do gold prices change in Mumbai?

Like every other city and state in the world, gold prices trend today in Mumbai change due to a number of factors, all of which contribute to either bring the rates up and down. Here are some of the key aspects that determine prices of gold in Mumbai:

1. Rates set by the Indian Bullion Jewellers Association (IBJA):

IBJA, as the name suggests, is the association of all the gold jewellers in and around the country. This organisation is the one responsible to set gold rates in each city. When setting the rates, the company takes into account the following information:

1. The rates set by some of the largest gold dealers in a particular city.
2. Import duty, which is often different to each city.
3. Rates in the Multi Commodity Exchange (MCX) index. MCX is basically an exchange facility where goods and precious metals are bought and sold. Gold price changes are primarily decided based on the performance of this market.

Where to Purchase Gold in Mumbai?

There are many locations in Mumbai where one may purchase gold. Numerous gold jewellery stores in Zaveri Bazaar provide a selection of styles and designs. Popular stores include Tanishq, Bhimji, Tribhoovandas, etc. You can also look through nearby shops to purchase gold. While there are variations in Mumbai's gold costs from store to store, you should pay particular attention to making charges. A slight variation in the making costs can have a big impact on the final price of the jewellery when the worth of the gold is high.

Different Ways to Buy Gold in Mumbai

Apart from gold jewellery, there are several other ways you can invest in this precious metal. Some of the most popular ones are gold coins and bars. Another viable alternative is to invest in gold ETFs. With gold ETFs, storage difficulties and the risk of theft are eliminated. Similar to gold rates, gold ETFs in Mumbai also follow international prices.

Gold ETFs are becoming popular among major funds, particularly domestic mutual funds. You can choose from several gold ETFs such as HDFC Gold ETF, SBI Gold ETF, Axis Gold ETF, and more.

List of Hallmarking Centres in Mumbai

As per the data made available by the Bureau of International Standards (BIS), there are over 63 hallmarking centres in Maharashtra. Hallmarking centres are basically certified organisations which test metals for authenticity against various standardised variables. In Mumbai, there are centres like Leo Analytics Lab (Borivali), Variety Hallmarking (Mahakali Caves), and Varsha Bullion Hallmarking Centre (Mumbadevi), etc. However, the government is not satisfied with the number of centres in the city and is considering opening several more so as to maintain the exact standards of gold available for purchase.

Tax Implications on Gold and Gold ETFs in Mumbai

A capital gains tax is due to people who frequently buy and sell precious metals like gold, and it is dependent on the overall profit they make. Within 36 months of purchasing your gold, if you make a profit on it, you must pay taxes based on the tax bracket you fall under. On the other hand, you will be required to pay a 20% tax if your profit is realised after 36 months.

Impact of GST on Mumbai's Gold Prices

Since the Goods and Services Tax (GST) was implemented by the Modi administration, gold is now subject to 3% GST. It is a little bit higher than the earlier rate. GST might seem like a burden to people who enjoy wearing gold jewellery.

Prior to the implementation of GST, making fees were exempt from service tax; however, the craftsmanship now carries a 5% fee. Obviously, this initially affected Mumbai's gold rate, but it is now stable.

Best Practices for Storing Gold in Mumbai

The issue of storage, especially when considering precious metals like gold is a long-drawn one. However, if you are looking for the right place to store gold, you can look into any of the lockers provided by a bank near you. Banks usually offer storage space for a surcharge and will also allow you withdraw them whenever you like. If you have gold in large quantity, it is advisable to store them in a locker.

However, if you have a small quantity of the metal, it is rather better if you store them in a locker in your house. This would help you save on storage charges you'd otherwise pay the bank. Doing so will also save you the round trip you will have to take to the bank in order to use the gold for any festive occasion. Gold storage rentals in Mumbai typically start from Rs.5,000 per year for a small space. So, its better for you to take a call whether and not you will need a storage depending on the amount of gold you own.

Things to keep in mind before buying gold in Mumbai

1. Gold certification - Choosing gold with a hallmark stamp is the best bet for obtaining the purest gold possible. You should also request the BIS certificate, which verifies hallmarked gold jewellery made in India.
2. Making costs - Labor costs associated with making jewellery are referred to as making costs. They are usually based on the jeweller.
3. Buyback terms - Indian jewellery stores provide their customers with buyback terms so they can trade in their used gold jewellery for new items. The price of gold is set by Mumbai's current gold exchange rate. It's crucial to understand the buyback conditions if you want to exchange or return jewellery.
4. Gold purity - Verifying the gold's purity is a crucial factor to take into account when buying gold. Your investment will be wasted if it is not pure. Gold's purity is always expressed in karats. The purest type of gold is 24 karat which is 99.9% pure, followed by 22 karat gold. To prevent fraud, make sure your 24 karat or 22 karat gold is BIS- hallmarked when purchasing gold in Mumbai.
5. Locker Price - Everyone wants to keep their gold ina secure location. The best option for ensuring the security of your gold jewellery, coins, and bars is to purchase a locker. Your valuables are kept safe in a bank locker for an annual fee. To use the locker facility, you must have a Fixed Deposit with the bank.
6. Obtain a bill - To increase transparency in your gold buying process, request a bill. If you plan to sell the gold in the future, the bill will be helpful.
7. Cost - Take into account the current price when purchasing gold as it provides a good indication of the going rate. The price of gold varies depending on where you are.