Why is gold cheap in Kerala?

  • By Ruptok
  • January 27th, 2022

In India, Kerala is a popular tourist destination. In addition to its eco-tourism projects and stunning backwaters, Kerala is well known for its passion for gold. Kerala has long been regarded as a fantastic market for buyers and sellers of gold. Kerala is one of the top gold users in India, accounting for almost 20% of the nation’s gold consumption, according to a reputable business publication commodities online.

Together,gold loan businesses hold almost 200 tonnes of the yellow metal in jewellery, making Kerala one of the most significant gold markets worldwide as well as in India. Every day, the price of gold varies in Kerala depending on the demand for it and the global market. On a reliable website, it is simple to look up the gold rate in Kerala.

Factors Determining Gold Rate in Kerala

Being a state that is significantly involved in the gold industry, Kerala’s constantly fluctuating gold rates are established using the following criteria:

Inflation: Kerala’s gold rate has increased as inflation has been on the rise.

Low-interest rates on FDs: When FD interest rates fall, people start investing in gold, which increases demand and, eventually, the price of gold.

When to buy: People in Kerala are enamoured with gold, and demand rises throughout festival and wedding seasons. This causes the price of gold to rise. During the widely observed Onam festival, gold prices in Kerala increase. The price of gold dramatically increases around Onam because women adorn themselves with gold jewellery and invest in it. Elders often give gold coins to youngsters as gifts. Additionally, it has been noted that in Kerala, participating in any event or function is always accompanied with a gold purchase.

Money: The price of gold in Kerala is heavily influenced by the world market. The gold rate rises as the US dollar gains strength against the Indian rupee, while it falls as the US dollar loses strength against the Indian rupee. This is due to the fact that India buys gold from the US. Therefore, any change in the dollar’s dynamics will directly affect Kerala’s gold rate.

How is the current gold rate in Kerala calculated?

The most significant aspect in determining the gold rate in Kerala today is the international price. The price of gold today in Kerala is rising along with the worldwide gold price. The dollar has been steadily rising for more than a decade, which has caused the gold price in Kerala to rise sharply since the US currency has surpassed the Indian rupee in strength. The All Kerala Gold and Silver Association, a group of gold merchants, sets the gold rate in Kerala today after taking into account the aforementioned elements.

How can one invest in gold in Kerala?

Kerala views the yellow metal, gold, as a fantastic investment choice. The use of the precious metal is seen to be lucky when commemorating numerous occasions and holidays. Similar to stocks, bonds, shares, and mutual funds, gold is regarded as a fantastic investment choice. Keralan gold investors have access to the following channels:

Gold jewellery: One of the most well-liked approaches to make a wise investment is to get gold jewellery. In Kerala, buying gold is a widespread practice regardless of the price. Gold jewellery investment is a favoured investment choice in Kerala due to its popularity and stylish appeal. It’s crucial to remember that the production costs are included in Kerala’s gold rate for gold jewellery. As a result, when giving a customer the final price for their gold purchase, making fees are subtracted.

Gold ETFs: Thanks to advancements in technology, gold can now be kept in electronic form. Gold ETFs, which are individual stocks that can be exchanged on the stock market, allow for the investment of gold. Gold is invested as a commodities ETF under this method of investment, and its units are listed on the stock exchange. Gold ETFs are simple to buy and sell online and, after a year, provide certain tax advantages.

Gold mutual funds: Choosing to invest in gold mutual funds is a way to purchase gold. Either choose a gold mutual fund that is listed on a major stock market or invest in a fund of funds, which invests in a variety of other funds that are related to gold.

How a Gold loan in Kerala can help you.

To handle any financial situation, get attractive interest-rate gold loans in Kerala. For borrowers who have savings in the form of gold, gold loans are the best and easiest option.

As a result of the pandemic’s side effects, such as layoffs, closed enterprises, and salary cuts, many households are likely to pledge their gold rather than sell it to raise money for necessary expenses. Small companies with cash flow problems can also borrow money against gold.