Key Reasons Why Gold Rates in India Differ City Wise

You might be wondering why some people travel to different places to purchase gold instead of buying it directly from the shops available in their own city. Well, there is a valid reason behind this: the gold rate differs city-wise even in the same country. Do you want to know why? Here, let us explore the key reasons why Gold rates in India are different in various cities.

Here Is Why Gold Rates Are Differest In Different Cities In India

Government duties & tariffs

The import duty as well as taxes imposed on gold by the Indian Government play an essential role in determining the gold price in the country, similar to any other country. These duties can be different depending on the political and economic situations of the country. When import duties are high, gold prices are also likely to be high. In other words, the decision of the Government regarding import duties has a direct impact on the gold price in the retail market.

Cost of Logistics and transportation 

Transportation costs can be considered one of the fundamental reasons for varying gold prices among different cities in the country. Gold is a pricy and heavy metal that needs secure transportation which results in an additional cost. Plus, there are different factors associated with transportation costs including distance, and mode of transportation, apart from security measures taken.

Margin of Retailers

Retailers have an integral role to play in determining Gold rates in India across different cities. They hold the flexibility to set their profit margins which can vary from one city to another. And this precisely impacts the overall gold price. Thus, it can be said that in cities with lower retailers' profit margins, the price of gold, consequently, is lower when compared to cities where retailers hold a higher profit margin.

Association of Local Jewellery 

There is a local association for almost every part of India. Just like that, jewellers also have their own association that regulates the structure of gold prices regularly. These associations set the gold rates depending on aspects such as the End of Day (EOD) price of the previous day, international gold market conditions, as well as additional costs associated with making gold marketable. These rates are usually determined twice a day. 

The other gold rate determining factors include the purchase price of gold, Demand, supply, and quantity of gold, value of Rupee and US Dollar, Central Bank Gold Reserves, Inflation, etc. 

Visit This Platform To Know Gold Rates 

If you are interested in knowing the Gold rates in India and want to check it regularly, visit August.in. Visit www.15august.in for more details.