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Gold Rate in Chennai (25th February 2017)

Gold Rates in Chennai are witnessing a steady trend since the start of the year.  Demand for gold in Chennai has been on the rise, with most of the demand coming for jewellery and less in gold biscuits and gold coins.

Today 22 Carat Gold Price Per Gram in Chennai (INR)

Gram 22 Carat Gold
22 Carat Gold
Daily Price Change
1 gram ₹ 2,849.70 ₹ 2,826.40 ₹ 23.30
8 gram ₹ 22,797.60 ₹ 22,611.20 ₹ 186.40
10 gram ₹ 28,497 ₹ 28,264 ₹ 233
100 gram ₹ 2,84,970 ₹ 2,82,640 ₹ 2,330

Today 24 Carat Gold Rate Per Gram in Chennai (INR)

Gram 24 Carat Gold
24 Carat Gold
Daily Price Change
1 gram ₹ 3,048.50 ₹ 3,023.60 ₹ 24.90
8 gram ₹ 24,388 ₹ 24,188.80 ₹ 199.20
10 gram ₹ 30,485 ₹ 30,236 ₹ 249
100 gram ₹ 3,04,850 ₹ 3,02,360 ₹ 2,490

Gold Rate in Chennai for Last 10 Days (10 g)

Date 22 Carat 24 Carat
Feb 25, 2017 ₹ 28,497 ₹ 30,485
Feb 23, 2017 ₹ 28,264 ₹ 30,236
Feb 22, 2017 ₹ 28,187 ₹ 30,152
Feb 21, 2017 ₹ 28,268 ₹ 30,238
Feb 20, 2017 ₹ 28,308 ₹ 30,300
Feb 19, 2017 ₹ 28,311 ₹ 30,279
Feb 18, 2017 ₹ 28,312 ₹ 30,281
Feb 17, 2017 ₹ 28,392 ₹ 30,656
Feb 16, 2017 ₹ 27,998 ₹ 29,949
Feb 15, 2017 ₹ 28,042 ₹ 30,008

Weekly & Monthly Graph of Gold Price in Chennai

Historical Price of Gold Rate in Chennai

  • Gold Price Movement in Chennai, January 2017
  • Gold Rates 22 Carat 24 Carat
    1 st January rate Rs.26,977 Rs.28,873
    31st January rate Rs.27,838 Rs.29,692
    Highest rate in January Rs.28,360 on January 19 Rs.30,215 on January 19
    Lowest rate in January Rs.26,977 on January 2 Rs.28,873 on January 2
    Over all performance Rising Rising
    % Change +3.19% +2.84%
  • Gold Price Movement in Chennai, December 2016
  • Gold Price Movement in Chennai, November 2016
  • Gold Price Movement in Chennai, October 2016
  • Gold Price Movement in Chennai, September 2016
  • Gold Price Movement in Chennai, August 2016

22 Carat Gold Rate In Chennai Today Vs 24 Carats

This is a question that many investors and users of the precious metal would like to know. Let us quickly take this question in a quick point by point answer.

1) 24 Carats is fully pure, while 22 carats is not.

2) The former has purity of 99.99 per cent, while the later is 91.6 per cent pure.

3) 24 karats gold is more expensive than 22 karats.

4) 22 karats is used to make jewellery, while 24 karats is not, because it can break rather easily.

So, should you buy 22 karats or 24 karats?

This is something that is always so very difficult to answer. It depends on your own needs and requirements. For example, if you are going to buy gold ornaments, there is no way you are going to get them with 24 karats purity. You have to buy them as 22 karats purity. Now, the resale value is always better in the case of 24 karats, but individuals largely restrict themselves to coins and bars. Of course, the latter is for the rich and affluent class as the costs involved is very high. In any case, you can make a choice yourself, given the fact on your own financial condition and whether you have money for the same.

So individuals often ask the question: Should we go with 22 karats or 24 karats gold? The answer is very simple: 22 karats gold would fetch you lesser price, while 24 karats gold would fetch you a higher price. If you are looking to buy and sell both are very much marketable. So, the choice of which level of purity of gold to buy is purely your own prerogative. As for us we would recommend that you buy either.

How is todays gold rate in Chennai 916 determined?

Have you ever asked yourself how gold rates in GRT Chennai or gold rates in Lalitha Jewellery are determined? It is more complex then you think to determine the gold rates in Chennai. This is because let us see what are the factors that influence the gold prices of 916 gold in Chennai. In fact, not only 22 karats, but all other varieties of gold.

a) Interest rates:

One big factor is the interest rates. When interest rates in developed countries rise, investors sell gold and buying fixed yielding instruments. This affects the daily gold rates in Chennai.

b) Demand for the precious metal

This is a pretty straight forward point. As is widely known anything that has lower demand will see a fall in prices and anything that has good demand will see a rise in prices. This is also true for gold.

c) Government policies

Gold prices go higher when the government policies are not favourable for the precious metal. Say for example, when the government imposes duties and tariffs it leads to a fall in prices and this is very simple.

d) Local factors

Gold is also impacted by a number of local factors like the local government's tariffs and duties. In short, there are a host of factors that influence gold rates in Chennai today. You need to examine the prices before buying. Unless, there is a need you should avoid buying at high prices. You can adopt a strategy of buying on declines. We suggest that you buy for the very long term or else you would not be able to make any money from the price rise in the precious metal.

Gold Rate in Chennai, 22 & 24 Carat Gold Price Today

Understanding the gold markings on Jewellery in Chennai

There are various markings on gold Jewellery that could happen from time to time. These include the hallmarkings, which have the typical markings with the date of manufacture etc. But, what you could also look at as is the markings for the typical purity of gold. let us see what these gold markings in Chennai comprise of:

24 karats marking:

The 24 karats marking comprises of no other metal that is mixed with it. So, if you buy 24 karats gold in Chennai, you are assured of the purity of the metal, which is 100 per cent pure. It does not get purer then this.

22 karats gold

Typically this would be used in gold jewellery and you can see the marking on the jewellery. This is about 91.6 per cent pure with the remaining being probably copper. So, check the marking before buying.

18 karats marking

This is another common form of gold and gold jewellery that we see in the 18 karats marking. Gld jewellery is often used to make with 18 karats gold.

Now, there are emerging worries as far as hallmarked gold is concerned. There are reports that are emerging that gold in Chennai or any other centre, should have hallmarking centres that are thoroughly monitored, so that there is no scope for duping the customer. Also the belief is that if we see a lot of gold being hallmarked, India could have the potential to generate large amounts from export of the precious metal.

Lower karats forms

There are many lower forms of Karats which could as low as 8 karats. These are rarely used in India and we do not even know whether anybody sells the same. We suggest that you go with the usual tried and tested method of 22 karats and 24 karats gold. Even the 18 karats gold is good enough in Chennai. The long term stories for all of these precious metals is good. In India generally you should be buying the 22 karats or the 24 karats or the 18 karats.

Why Chennai is a big consumer of gold?

It is difficult to precisely pin as to which city is the largest consumer of gold in India. According to reports one of the biggest consumers of gold in in India is south India. There are reports that South India consumes the maximum of gold and that is around 30 per cent. Of this it is difficult to come to any conclusion on the exact consumption that we are seeing for gold in Chennai. But, we must understand the significance and why gold consumption is so high in Chennai. Gold is not only considered as auspicious, but, also a matter of pride and prestige. As a matter of fact, the larger the amount of gold that one puts the more wealthy one is considered. Of course, over the years these kinds of fads are fast changing and people are becoming more realistic. How much gold can you put also depends on your ability to afford it. Buy and large it is largely customery these days to place a lot of gold on ocassions like marriage. This is one reason why Chennai consumes so much of gold. In the future too we are likely to see demand from the city continuing to be strong and robust. However, at most what could happen is that the desire for physical gold may slowly make way for gold in various forms like gold etfs and gold bonds. But ultimately, the desire for gold would always be there.

Importing gold into Chennai

There are various aspects of importing gold into Chennai. Here are a few things that you need to keep in mind.

a) You can import a maximum of Rs 1 lakh of gold and that too you have stayed outside the country for more than 1 year.

b) The above is for women and men are allowed to import gold to the tune of Rs 50,000 only.

c) It is important to carry an export certificate, if you are carrying gold on your way out of the country, so you are not questioned on your way back into Chennai.

d) This is also a valuable document and forms an important basis of proof that you carried gold out of the country.

e) It is important to understand that you should have stayed outside the country for more than 1 year for the above norms to be applicable.

g) It is also important to remember that you cannot carry more than 1 kg gold and the limit is presently restricted to 1 KG.

h) There are other aspects that you need to keep in mind before you buy into the precious metal and import into the country. it is also important to understand that the rules regarding import of gold into the country keep changing and you should know all the rules surrounding them.

How to buy gold in the futures market in Chennai?

It is not too difficult to buy gold in the gold futures market in Chennai. You first need to open a broking and trading account before anything else. Once you open the broking and trading account, you can buy gold in the same way as you buy shares and stocks. For this you have to first place an order. There are many advantages of buying gold in the futures market in Chennai. The first and the foremost is that it is easily liquid. You can sell and the amount is credited to your account in trading day plus 2 days. The second there is price transparency and you do not have to worry whether you got the right price or not. Lastly, you can buy in large quantities with lesser amount, in place of the amounts you would have got for buying physical gold. This is because buying gold in the futures market largely works on the basis of margins. Normally, you would end-up paying a margin of 5 to 10 per cent. So, in the futures market if you buy gold worth Rs 2 lakhs, you would end-up paying only Rs 15,000 as margin. check that before you buy gold in Chennai.

What is the best rate to buy gold in Chennai?

This is often the most difficult question to answer. In fact, few would attempt to answer a question like that. But, let us give you some clues on what would be the best rate to buy gold at in the city of Chennai. Today gold rates in Chennai for 916 karats purity is around the Rs 28,200 levels. It was at Rs 27,200 in the month of December. So, it is not a bad bet at the moment. Investors have made money in the last few months. But, those buying the precious metal may not make money any longer. In fact , if they do, their returns at best would be very minimal. So, what this means is that for a little returns the rewards are not too high, as the risk to fall is even higher. In short, the risk to reward ratio is no longer favourable for buying gold. So, what you could do is buy into the precious metal, only when it is low. But, how low is often the question. Let us say that you want to sell at rates of Rs 30,000. In that case, you should buy the precious metal, at around the Rs 27,000 levels, which would then give you decent returns of near 10 per cent. Do not forget that gold has a lot of costs associated with buying and selling, which means your returns need to be even better. This is the only problem with gold rates in Tamil Nadu generating the returns for investors. At best you get nominal returns. Another thing worth noting is that you end-up also paying taxes, which means your returns dip even further. In any case, buy on dips and sell at higher levels is the only strategy that you can adopt

Why Gold Prices in Chennai Change?

Gold prices in Chennai are influenced with a host of factors. Among these include how the central banks across the globe are buying and selling gold. These days there is not a lot of storage that takes place with the central banks of each country. When this happens it could lead to a sharp volatility in the prices of gold. In short, this is the demand that emerges from the central bank's of the country. When there is a larger than expected demand, from the central banks it could push gold prices higher and hence the prices in Chennai also tend to move higher. The other factor that influences gold prices is the role played by Gold ETFS in the country. When gold ETFs buy, it leads to a rise in the gold prices in the international markets, which ultimately have a bearing on the gold prices in Chennai. Cross currency headwinds can also impact the precious metal. For example, a sharp gain in the dollar can make gold prices fall. In short, gold prices today are impacted by a host of factors and there is no single reason that has a major impact. At best you can say that it is multiple factors that come into play, as far as gold is concerned. You cannot buy gold based on timings and predictions.


Taking gold loans in Chennai

You can avail gold loans in cities like Chennai and other states of Tamil Nadu. In fact, there are many gold loan companies that offer gold loans to borrowers, which we should use when we are in dire straits. Gold can be pledged for money. How much of gold you would get from the gold loan companies, depends on a host of factors including the purity of your gold. Also, the Reserve Bank of India from time to time specifies the gold to loan value, beyond which gold loan companies cannot lend gold. One can avail gold only during emergencies and generally speaking individuals in India are very reluctant to take a loan. This is because gold is considered very precious in India and the last thing that Indians want to do is to pledge their gold. In any case what we suggest is that in place of taking a personal loan it is always a better idea to take a gold loan. Interest rates are almost the same for a gold loan or a personal loan. The only big advantage that one may receive with regards to the gold loan is faster disbursals then a personal loan, which maybe a time consuming affair.

Checking purity of gold in Chennai

You are in Chennai and wishing to buy gold, the first thing you should do is check today's 916 gold prices in Chennai today. Apart from this the second and the most important thing to do is check if the gold you are buying is not adulterated. What we mean is that it should be pure. Now here are a few things that you should do. Firstly, we strongly recommend that you look for hallmarked gold. We are not sure, how many gold jewellery shops in Chennai sell hallmarked gold. The BIS has to set up-more hallmarked centres in the country so gold jewellers in the city, can go ahead and get the gold that they are selling as hallmarked ones. What happens when you buy this kind of precious metal is that you are at least assured that you are buying pure gold. What this also means is that you will not have regret of buying impure gold at a later stage. There are many reasons to be buying hallmarked gold. The most important of these is that you can easily sell them, as the buyer is assured of purity. So go ahead and buy this king of gold only in Chennai.

Rising demand

Chennai has always been one of the top cities in the country, when it comes to gold demand. There has always been a steady uptrend that we are seeing. The city now not only sees significantly higher demand but, there is also a good and different gold patterns that we see. The city boasts of gold patterns that are typical to the city only. What this means is that you do not get the type of patterns elsewhere which makes this rather unique. People of the city also like gold and if they need to buy, they would. What this means that price is not a major factor in taking a decision all of the time. Sometimes, it is more of a case of love for the precious metal. So, gold rates become almost irrelevant during those times. If you are looking to buy into the precious metal, now maybe the right time.

Gold prices in Chennai in 2017

As we move into 2017, the question that often arises is: how far can gold prices move higher from here on? We are not too bullish on gold prices moving higher from here on. We believe that higher interest rates in the US and a gaining rupee, could put pressure on gold prices in India. The only hope for gold rates in Chennai moving higher is geo-political tensions around the globe. We do not foresee that happening anytime soon, which is why we believe that gold prices in Chennai would move lower. The rupee has also been gaining against the dollar, which will ensure that gold prices do not gain much.

As we write gold prices have already dropped to a 6-month low in India. For some support for the precious metal, there should be a few things that should happen, however, none of the factors at the moment are conducive. For example, there are no geo-political tensions, which normally tend to wreck havoc with prices. On the other hand, neither is there too much of economic growth that is faltering. With global equities rallying, gold is likely to see a drop, as investors move away from it, to equities, which tend to flourish, when gold is moving lower.

Today gold rates in Chennai 916

Gold rates in Chennai today for 916 may vary from shop to shop. You need to check the prices before buying. However, it is likely that prices would not change too much, though making charges would differ. If you go for schemes from the local jewelers they may offer you some discount in terms of prices. Therefore, you can take up gold schemes and also ask them for the live gold rates in Chennai, before you decide on buying. Remember, there is another way you can closely monitor the gold prices and that is through the futures and options trade. This is the best way to track live prices, though you would need to open an account for the same. The prices may differ from the spot rates and the futures rate. So make sure that you are not making a buying decision based on one rate. In any case, you can always buy in small quantities instead of making a lumpsum payment.

Shops to buy Gold In Chennai?

There are a number of Jewellery shops in Chennai. Tanishq has as many as six gold jewellery shops in Chennai. In fact, we do not know, if they have added a few more in the city.

Prince Jewellery located at RT Nagar in Chennai is another. Lalitha Jewellery and Mart at T Nagar is another popular place that you can buy gold and gold jewellery in chennai.

When passing by Catheral Road in Chennai, you cannot miss the huge shop of Khazana. In fact, it has now expanded to other cities like Bengaluru. There is also Lalitha Jewellery wher you can check and buy gold in Chennai.

If you go to Usman Road in the heart of Chennai city, you cannot miss the huge shop of Sree Kumaran Gold House. It is a part of the Chennai Silks Group and has a great variety of gold and gold jewellery in the city.

How 916 Gold rates in Chennai is determined?

Today 916 Gold rates in Chennai, more popularly known as 22 karats gold is determined in the international markets. Domestic cues, except the currency and local tarrifs are the only way gold prices in Chennai are affected. However, practically speaking gold rates in Chennai today depend on how global factors pan-out. For example, when interest rates in the US rates rise, international prices go higher and when interest rates go higher, gold prices would fall. Another possible factors that affects 916 gold rates in Chennai today is cross currency headwinds. For example, when the dollar falls, gold prices gain, while on the other hand when the gains, gold prices tend to fall. Whether gold prices fall or gain, it is important to keep part of your investment in gold, so as to hedge your risks. Of course, while there are many ways in which you can buy gold, including gold bars, gold coins and biscuits, the best bet would be the gold ETFs. 

Things to be aware of when buying gold in Chennai?

The one good thing when buying gold these days is that we have come a long way since the good old days, when it was very difficult to check purity and buy gold. Today, we can conduct checks before buying.

In fact, when buying the precious metal, we suggest that if it is jewellery or gold coins and bars, you make sure that you look for hallmarked quality.

Also, it is important that you do not melt gold and make new ones, as you get very little value when you melt gold. If you are looking to buy gold do not forget to go for hallmarking. These days there are reports that even hallmarking of the precious metal can result in duplication.  So, the best way out would be to buy gold from a reputed jeweler only. At least, this way you can be rest assured on the purity of the gold. In any case, gold it is always a better proposition to buy into hallmarked gold. If you are buying gold inline, remember there is always an element of risk, so you need to be careful. There is no mechanism, by which you can check the purity of gold online. So, be careful.

Understanding making and wastage charges

It is important to understand how making and gold wastage charges work in Chennai. There used to be a time when jewellers would claim that the old gold jewellery melted entailed a lot of wastage. They would then claim this from the melted jewellery of the individual. What would happen in the end would be that the investor or the individual got very little value for his money. Sometimes, there was no way to be sure that this was a fact or not. It could also result in individuals getting duped. We are not saying that all of the jewellers could make this happen. However, one must note that there can be no exorbitant charges when it comes to gold in Chennai. Another issue that we need to discuss is the making charges. This of course has to be paid and can vary from jeweller to jeweller. Again this has to be compared to jewellers in the viscinity so that you get the best on making charges.

What to do with your old gold in Chennai?

If you have old unused gold in Chennai, you have plenty of options on what you can do with it. The first is that you can either give it to the jeweller and make new jewellery or you can sell the same. We would advise you to sell the same for a number of reasons. The first and foremost is that it gives you instant money in the form of cash or cheque. Secondly, there are many gold loan companies that give you a better gold rate then the jewellers. Some of them use the latest German machines to check for the gold purity. If you are looking to sell the same, the right way would be to approach them. You might get good rates and that too without damaging your gold. However, remember that you need to carry your address proof or else you might not be able to encash.

Where to check for the hallmarked 916 22 karats gold in Chennai?

As we have been saying in many of our article, go for the hallmarked gold rates in Chennai. Now, the question is where do I get hallmarked jewellery shops in and around Chennai offer you hallmarked gold. Once you buy them you have to look for the stamp. Check for the BIS hallmark, which will be on the inner or back side of each of the ornaments that you are buying. You can see the date, year of logo manufacturing date etc. So, once you are done you have finally purchased a hallmarked piece of gold. This is imperative because it becomes easier to sell a hallmarked piece of gold then any other. However, you may not find all jewellers providing this facility, especially in the rural areas.

Looking foward to better prices

It has not been a bad year for people in Chennai who invested in gold. It is always a good idea to be a little more optimistic when it comes to prices. This is because, there are always hopes of better recovery in gold prices for a number of reasons. Demand for the precious metal is likely to rise in the coming years and this should augur well for the precious metal. We believe that demand not only from the making of jewlery, but, also from industrial use would rise in the state of Chennai. When that happens Chennai live gold rates are likely to move higher. Demand from industry, so fas has been very subdued, as industrial growth has slumped across the globe. This has put some pressure on gold prices in Chennai and across the various parts of India.

How much gold ornaments can you import into Chennai?

There is a restriction on gold jewelery and ornaments that you can bring into India. If you thought there is zero duty when bringing gold into Chennai, you are wrong. There is an amount up to which you can freely bring the precious metal. for example, you can bring up to Rs 50,000 of gold jewellery into the country without any duties, if you are a male. On the other hand the amount is restricted to Rs 1 lakh, for a female traveller. However, there is a cap of up to 1 kg that you can bring. There is some misconception that we can import gold duty free up to 1 kg. This is not true and you need to pay the applicable duties beyond the value that we have mentioned above. Therefore, if you are staying abroad it makes sense to come to India and buy your required quantities of gold. Today, the city of Chennai boasts some of the finest patterns of the precious metal.

Famous jewellery shops in Chennai

There are a number of famous jewellery shops in Chennai where you can buy gold from. Some of these include Laliltha Jewellery, G R Thanga Maligai, Khazana Jewellery etc. However, one can also visit the popular stores or chains. Among these include the Tanishq and Reliance Jewels as well. for example, Tanishq has a number of showrooms in Anna Nagar and R T Nagar area in Chennai. Lalitha Jewelery is another popular place to shop for gold in Chennai. There are many companies that also offer schemes where you can have a monthly sum deduct from your account. There are also mechanisms whereby you can pay the money online. You need to visit the showroom of some of these companies. Reliance Jewels too runs a showroom in Chennai. We are not sure of some of the branches of these big chains, but, you can check through the local directories.

Rich returns from Chennai gold

Investment in gold in Chennai has helped investors reap a bountiful. Gold prices in Chennai, which were trading at Rs 65 in 1964, has galloped to Rs 27,300 for 10 grams today. In fact, there has been a heavy demand for the precious metal in the city, which has pushed gold prices higher. Even in the last 10 years or so, gold has given solid returns. For example, in 2008, gold prices were near the Rs 10,000 mark, they have already grown by 2 and half times in the last 8 years or so. This is why individuals prefer the precious metal, as it has provided a perfect hedge in times of crisis. And, if you are a long term investor, you should just not be worried about temporary fall in prices.

Lalitha Jewellery Gold Sparrow Scheme in Chennai

Lalitha Jewellery, the renowned gold Jewellery shop in Chennai and Tamil Nadu runs the popular Golden Sparrow Scheme. under this scheme you pay money in 11 installments and buy gold jewellery after this period, but, within 30 days of completion of 11 months. One is still not clear on what is the discount the firm is offering. You can also buy gold Jewellery above this amount, but then you have to pay the excess amount. Say for example your 11 month installments amount to Rs 25,000. What you can do is buy gold worth Rs 30,000 and pay the balance of Rs 5,000. We so no advantage in buying through Jewellery schemes. in fact, we suggest you put money in fixed deposits, where you earn an interest and after 11 months redeem the same and buy gold. Why should one complicate the life with these schemes, where again there are so many terms and conditions involved. In any case, even if you are going to purchase these schemes do it from reputed Jewellers.

Understanding how gold rates in Chennai fluctuate?

Gold prices tend to fluctuate based on a host of factors. Among these include how the dollar behaves against a number of important currencies - let us say for example the euo and the Japanese Yen. When the dollar moves up against these important currencies gold prices tend to fall. On the other hand when the dollar moves down, gold prices tend to go higher. This is the simple co-relation between gold and the US Dollar. Another important factor that you should always keep in mind is that the government will levy duties to protect the flow of dollars outside the country. In the past it has altered the duty structure on gold, which had had its own influence on gold prices in the city of Chennai. Hence, you should exercise some caution before buying. There have been frequent changes in the structure of gold, which has altered the price of the precious metal. Remember, that gold prices are extremely sensitive to gold duties and structures.

Where to check gold rates in Chennai?

There are a number of online portals where you can check for gold rates. We at www.goodreturns.in update our gold rates frequently everyday.

You can come back here to check gold rates across Chennai. We wish to emphasize that you must check the prices before buying. This is because there could be minor changes in gold prices amongst jewelery shops in Chennai.

One of the most important things that you should be careful about is the making charges of gold jewelry. Sometimes, the difference can be substantial, though gold rates in Chennai among different shops is unlikely to be very different from each other. What differs largely is the making charges.

We hope that discerning investors and buyers will check making charges before investing or buying gold jewelry.

What drives gold prices in Chennai?

A while lot of things can move gold prices in Chennai. For example, when there is less economic chaos, gold prices would be higher globally and hence in Chennai. It is generally observed that as gold prices fall, equity markets tend to rally. So, shares and gold tend to move in opposite directions. There can also be a condition when both the asset classes are stable. There are many other factors that can drive gold prices either way. One important factor that can ensure less volatility is government policies that need to be stable. Frequent changes in duties can act as a deterrent to price stability in the market. We have seen that happen so often in the past, where gold prices have succumbed to an increase in import and excise duties. There are also things like inflation, which influence prices, which we shall discuss later.

Gold investment: A long term proposition

Gold investment is more a long term investment proposition in Chennai. If you want to have a perfect hedge against different asset classes, the best way would be through gold. In Chennai today, gold rates have given more of long-term returns than any other asset class. Gold has often known to be a perfect hedge against inflation. These days, gold rates have been more volatile than inflation, which is why the safe haven tag has been lost. In any case, you cannot have a portfolio, which does not comprise of gold. It is a good idea that gold be a part of your portfolio. The best way would be to invest in the precious metal through small amounts. The ideal would be through a scheme that is promoted by some of the local jewelers. This would help you save in gold for a wedding or a special ocassion. However, you need not invest a lumpsum aount, given the fact that gold prices are rather high now. It is a good idea to buy into the precious metal on declines.

Gold consumption on the rise

The precious metal has seen a steady rise in consumption in India from 442 metric tonnes in 2009 to 974 tonnes by 2013. However, this is not the highest when compared to countries like China which have a higher consumption. In fact, gold consumption in China at 1120 metric tonnes, was higher by almost 10 per cent as compared to India. In India most of the consumption goes into jewelery, while in China is is used a lot as bars and coins as investments. The country also uses the precious metal in manufacturing items. Of late there have been reports that the reserves of China was not as large as it was believed to have. The United States is the third largest consumer of the precious metal.

Taxes on sale of gold

If you thought there were no taxes that are applicable on gold, you are making a mistake. Not only is there capital gains tax on gold, but, there is also a wealth tax that is applicable.

To begin with, you must remember that if your gold value crosses Rs 30 lakhs, you must pay wealth tax. The valuation of the gold prices have to be done by March 31, 2016. It does not matter at what rates you bought the gold in Chennai and when.

So, if the amount of gold held crosses Rs 30 lakhs, you need to pay a wealth at 1 per cent of the value for that particular financial year.

Remember, the Income Tax Authorities have the power to raid and seize gold. Apart from this there is also a capital gains tax that is applicable on sale of gold. It is pertinent to note that this is only when you sell the gold and the profit arises thereof.

There are two types of capital gains that will arise. One is short term capital gains when you sell shares and the other is long term capital gains. In the case of short term capital gains, tax is done as per your tax bracket, while in the case of long term it is 20 per cent, plus indexation.

Bringing gold into Chennai from abroad?

Those travelling from abroad, can bring gold into Chennai, but, you need to watch for gold rates in Chennai and compare them with the rates abroad.

You can bring duty free gold worth Rs 50,000, if you are a male traveler, or upto Rs 1 lakh, if you are a female traveler. Gold prices in Chennai, will not defer too much from that prevailing abroad, though these days the quality of gold jewelry would not defer too much when compared to that imported from abroad. Earlier, investors or consumers were always worried on the impurities, but, the precious metal is today available in India, in its purest form.

Why investors should buy gold in Chennai?

Gold has not reduce in value over the last many years. For example, a Re 0.25 coin in 1970 had tremendous value. But, today it is out of circulation. Gold on the other hand keeps increasing in value and hence its value never diminishes and why it is a perfect hedge against inflation. Therefore, if you are looking to buy gold, use it as a hedge against inflation. It is also pretty much liquid and can be sold as an emergency. One can also avail loans, if one can pledge the precious metal with a gold loan company. If you are looking to buy gold in Chennai, always look at the long term prospects for gold and not the vest short trem opportunities that the precious metal ould offer.

Checking gold purity in Chennai

There are many hallmarking centres, where you can check the purity of Gold. These are set-up by the Bureau of Indian Standards.

You can ask and make enquiries in Chennai to see where these centres are located. These days, howeever, there is no need to check the purity of gold, given that we get hallmarked jewelery. You can insist on hallmarked jewelry. Since, these are already tested, there maybe no worries on quality.

Checking for purity does not take time and it should be done in 15 minutes.

Last year, there were reports that an associate of the Chennai Hallmarking Centre do checking of thousands of ornaments a day.

There is a constant demand to add ore such centres.

Global demand is fast falling

Worldwide the demand for gold is fast slowing down. Traditional demand which came from industry and jewelry is showing a decline. For example, gold demand for jewelry, according t statistics provided by the World Gold Council was just about  2,390 tonnes in 2015, as compared to 2,479 tonnes in 2014. So, the year-on-year demand has actually declined as compared to the last year. In fact, even in industries like electronics the demand for the precious metal has actually declined. Physical bar demand was flat at 761 tonnes in both 2015 and 2016. On the other hand official coin demand rose from 205 to 220 tonnes from 2014 to 2015. It is likely that we may see an increased demand for the precious metal in the coming years, if prices dip. It must be remembered that prices of gold in 2016 have gained and when this happens demand tends to fall.


Investing options for Gold in Chennai?

If you thought, that investing in gold coins, gold biscuits and gold jewelry was the only way to invest in gold in Chennai, you are making a big mistake. There are various options, including the recently launched sovereign gold bonds. However, we want to suggest that those who want to invest in gold in Chennai, must also look at gold etfs. These are the best form of investing in gold, because of a number of reasons. The first is that they cannot be stolen. It is pertinent to note that gold ETFs are traded electronically, so if you wish to buy them you can buy them electronically. Secondly, you need not worry about storage, and charges associated with them.

Do not forget to also invest in the sovereign gold bonds, as they offer you interest as well. Before investing in gold, also remember that there is a capital gains tax that is payable, when you sell the gold.

What will be the gold rates in Chennai in 2017?

It is always difficult to hazard, which way gold prices would move in 2017. But, what we believe is that Chennai gold prices could dip in 2017. This is largely because there is a chance that interest rates in the US could be hiked. When that happens, investors move away from gold and buy into sovereign gold bonds in the US. This is why when you are buying gold, it is best to buy in smaller quantities. As the prices of gold keeps falling in Chennai, you could keep adding to your investments. However, remember that gold is fully taxable and if you have made a profit, you better pay the applicable taxes on the same. We believe that gold rates in Chennai, are unlikely to go-up in a hurry. Hence, you can make sure that you buy only on dips and avoid buying in large quantities.

When to buy gold in Chennai?

This is one question, that no one can answer. In the last few years, gold has managed to give superb returns, since the US sub prime mortgage crisis. Hence, if you are looking to buy gold, you can keep buying in small amounts every month. This will help you build wealth, as also invest systematically in gold.

Of course, if you are buying in large quantities it is better to seek professional advise, before buying gold in Chennai.

Why gold prices in Chennai differ from other cities?

 There are various reasons why gold rates in Chennai is different from other cities. Gold is imported into India as the country does not produce its own gold. So, when it is imported into ports, the cheapest is the places which have ports like Mumbai city. This is because, you do not have to worry about costs associated with transport. On the other hand further it goes, more expensive the price of gold becomes.

Most jewellers are members of an association and these associations tend to fix the prices of gold. They notify their members through various means on gold prices. In Chennai most are members of the Madras Jewellers and Diamonds Association. Here they receive the prices, which are updated at least twice every day. The timings may vary slightly depending on when the information is received.

Investors should look at the prices before they buy the gold. It is also important to negotiate with your jeweller, before you buy the gold. Investors of the precious metal in Chennai, should also check for the quality and ask for a receipt. Make sure that you check the quality is hallmarked. These days the jewelery we get in India is second to none. There is less chances of quality issues as most of the gold in India is now hallmarked and the design is comparable or is rather the best in the world.

Physical gold vs gold ETFs

Gold ETFs track Gold prices in Chennai today. However, the important thing is you must not completely ignore buying gold ETFs in Chennai as compared to physical gold. This is because, gold ETFs are much better than buying physical gold, because there is no need for storage. Also, you would not be worried of thieves coming and stealing your gold, as these gold ETFs are held in the electronic form. Today, there are a plethora of options for buying gold, including the recently included soeverign gold bonds. Make sure that you look at all options and merely do not chase physical gold.

There are high chances that you would make more money by buying this gold option in Chennai, as it is cheaper and better.

De-monetization and its impact on gold

Recently, the government withdrew Rs 500 and Rs 1,000 notes from the market. The immediate impact of this is that lot of money could have flown into gold, which is good for demand of the precious metal. However, one cannot be sure that the same may have happened. In any case, gold demand in Chennai has been healthy this season, led by the festive season first and the marriage season now. Gold prices may remain stable in Chennai in 2017 as well, given that 2016 has been a year of fabulous returns for the precious metal. This is despite the fact that other asset classes like equities and real estate have remained flat over a period of time. In any case, if you are looking to buy gold in Chennai adopt a buy on declines, as the precious metal could also fall.

Understanding the difference between 22 karats and 24 karats gold

There is a major difference between 22 karats and 24 karats. Before understanding the difference between both, one needs to understand what is karats. This is nothing, but, purity of gold. When we say 24 karats gold, it means gold that is of the highest possible purity. Purity of gold cannot really go beyond 24 karats. Gold of 22 karats would imply lesser purity and is useful in making gold jewelery because, gold is brittle and it would ensure that gold does not break. In fact, all gold jewelery is made of 22 karats gold. If you want to buy gold biscuits and gold bars, the best option would be to buy 24 karats gold. This would be gold in its purest form. Apart from this, there is no much difference, except in terms of purity. Gold can also be lower than 18 karats. For example, we also have gold which can go to as low as 9 ounce, in which there is just gold of 41 per cent and the rest is silver.

The importance of hallmarking

A recent study shows that there is not a lot of hallmarking that is done in India. In fact, according to statistics only about 30 per cent of gold in India is hallmarked. The Bureau of Indian Standards began hallmarking gold somewhere in 2000. Since then, there has not been too much of an awareness campaign that has happened, which may have resulted in better quality of gold. For long people inn Chennai and other parts of India had to contend with gold that was not the purest form. For example, what may have seemed like 22 karats, which normally 91 per cent pure, may actcually not have been so. The government has to try its utmost in ensuring that investors and consumers alike receive hallmarked gold. Towards that end one would need to set-up more essaying centres to ensure that we have the highest quality. Over the years this has become a big problem and it is upto the Bureau of Indian Standards to take the initiative.

What is the difference between karats and carats?

There is no difference in karats and carats and they are spelt differently in different countries. Gold can be measured or weighed in different ways. In India, grams is the most acceptable way to measure gold. On the other hand, in the US individuals stick to troy ounce to measure gold. In fact, gold in he spot market is today trading at $1170 an ounce.  So, in India of you wish to purchase gold, you need to go buy troy ounce.

Buying gold in Chennai online?

There are many individuals who like to buy stuff online. It is good enough if you buy online, when you are sure of a product. With gold the situation is slightly different and we tell you why. When you buy gold, you have to first be concerned of the purity. If you are sure of the website that offers you the same karats it is fine. If not, then you have to check and returning stuff online is always a big hassle. Secondly, are you sure of the design? What if the design you had in mind, is not the same as the one shown on the website. This is a big hassle when buying gold jewellery online. You do not have these problems when you are buying gold bars and biscuits. In fact, if you are buying the same, do not bother, but, in all other cases it could be a big hassle.

 Is demand for gold in Chennai actually slowing?

It is always difficult to predict the price of gold. However, one important factor that can influence gold rates in Chennai is demand across the world. We are gradually seeing that the demand for gold in the city is fast declining. In fact, the city is seeing various alternatives to gold investments and these include gold ETFs, gold bars and gold coins. Today, there are a plethora of investment options for those looking to buy gold in Chennai. These include the not so popular sovereign gold bonds, which has not yet caught the fancy of investors. The other popular avenues is the gold exchange traded funds, that have evoked a good response. This is being increasingly preffered because there are no worries of theft and no worries of storage charges. Typically, if you are looking to store physical gold, you would prefer bank lockers. These would cost you money, which has to be added to the total cost of gold.

 How are gold prices determined in Chennai?

Ever wondered how gold prices are determined in Chennai? It is not really simple. People assume that since there is a festival round the corner, gold rates in Chennai would higher. That is not true though. Gold is largely determined in the international markets, where there are various factors that come into play. Among these include factors like interest rates movement, geo political tensions and the like. It is impossible to predict the correct gold rates in Chennai and where they would be. However, you can seek expert advise, which would hold you in good stead, when it comes to gold prices. This is because these days we need to seek professional help, if we do not have the expertise on gold and there is no harm in doing the same.

What influences Gold rates in Chennai

There are a lot of elements which affect gold price in Chennai but there are few which influence the gold rates in Chennai a lot such as U.S. Dollar rate, Reserve Bank stability and financial costs.

Due to the fluctuation in dollar rate Gold rates also fluctuates but in opposite way. If the dollar goes up gold comes down and vice versa. With the change in policies of Reserve Bank such as demonetization also affects the gold price in Chennai. Even the financial costs such as loan price also affects gold price. As Loan price decreases gold price in Chennai will increase.

Cash encounters vulnerability, but commodities such as gold and silver don't. So, some smart investors go for commodities such as gold than cash because gold acts as refugee what ever the economic condition is.

Even opting loan on gold is easy as thier are lot of banks and NBFC's which give loan on gold.


Latest Updates on Chennai Gold Rates

Chennai gold rates to trend higher

Gold rates in Chennai are expected to trend higher, as investors weigh options pertaining to their decision on buying and selling the precious metal. Gold for 22 karats was trading at Rs 28,900 per 10 grams in the Chennai city and this is expected to move higher. Live gold rates in Chennai today are determined by a host of factors and among these include the prices of the metal in the international markets. Now, what would be the outcome of international rates in the near future is something that is hard to tell. Firstly, it is expected that the US Federal Reserves would hike interest rates in the coming days and when that happens, we are likely to see that gold prices in Chennai could fall. We must inform readers that gold prices are extremely sensitive to a rise in interest rates in the US and when that happens, these fall. Now, if you study the trend of gold rates in Chennai, you observe that there has been a gradual increase over the years and if the trend continues, we might see gold prices soon surge past the Rs 30,000 mark. When that happens those who have accumulated gold on declines could sell their gold and make money from it. However, if you are looking to buy gold at these levels and make profits from it, the chances are very dim and hence you should adopt a sell on rally policy. Look for a buy on decline strategy as well on gold prices in Chennai.


24 February 2017
Gold prices in Chennai to flatten

Live 22 gold prices in Chennai for 22 karats, is likely to flatten at the current levels, as investors look to sell gold on every rally. Gold for both 22 and 24 karats in Chennai have had a splendid run and the same is likely to continue. Some investors and those looking to buy the metal for an occassion may have to wait a bit longer as the metal has not gone anywhere in the last few months. However, overall it has given a rally in the last few months and this is not bad returns. However, the problem of getting returns from gold in Chennai is that you end-up paying a lot of tax, which in the end reduces your returns from gold. Now there are reports that those who make cash purchases of jewellery more than Rs 2 lakh, will have a tax collected at source that would be applicable on the same. This is another blow to the demand for the precious metal, which has always been badly hit by policies that have been adverse, not only in Chennai, but, also in all other parts of the country. So, if you are looking to buy gold in Chennai remember that there are a whole lot of taxes that would reduce your returns.


20 February 2017
Gold rates in Chennai to fall

If you check the gold rates in GRT or Chennai Saravana Stores you would see that rates have fallen a bit today on Feb 15th. The reasons for the fall in the prices of the precious metal is not far to seek. Gold has been on a roll since the start of the year and there is some selling pressure that is emerging in the city at higher levels. As gold prices in Chennai keep climbing it is highly possible that we may see a further increase in the precious metal. This is because if it falls, there could be a demand that emerges at lower levels. That demand may lift the price of the precious metal all over again. Is it a good thing then to buy at lower levels and sell at higher prices. Actually, that should be the only idea that you should have in mind, when buying and selling gold in Chennai. There are many analysts who advocate a sell on rally kind of attitude and that should not be a bad idea altogether. if you are a buyer, you should use every dip, as a buying opportunity and every rally as an opportunity to sell into the precious metal.

16 February 2017
Gold in Chennai to fall

Gold prices in Chennai are set to fall, as international gold rates fell off three month highs as things stabilized a bit. Gold demand has also been lacklustre in Chennai as prices have risen sharply, forcing individuals in the Chennai city to postpone their purchases. If prices continue to mount we may see a drop in the fall in gold prices continuing. This is because, while people in Chennai do buy for marriage and such occasions an important occasions, the real problem is that as prices rise individuals may show a little disinterest in buying gold at higher prices. So, buyers not only in this city, but, in any other city are always sensitive to gold prices. The problem for buyers of gold in Chennai right now is that: when do we now buy gold and are prices going to seriously decline. It is almost impossible to answer this question and honestly nobody ever has and will have answer to these questions. The whole point is that if you are a long term buyer, you can buy into the precious metal on decline. One cannot really say as to whether prices would decline and whether there would be really a good or opportune time to buy. These are always highly difficult things to predict in Chennai. If you want to buy for a need simply buy or else ignore. When to buy, even an expert with some certainty is unable to tell you. So, if you feel that the prices have reached levels that are attractive, you can make a choice.

9 February 2017
Chennai gold prices set to move higher

Gold prices in Chennai today are set to open higher, on account of a host of international factors. To begin with the US late last week reported jobs data, which was stronger then usual. While this should not have supported gold prices, because when the jobs data is strong, it leads to the US central bank hiking interest rates, which in turn leads to a drop in gold rates. It is important to note that gold prices and interest rates tend to move in opposite direction. When one goes high the other falls and vice versa. Chennai gold prices have been on good ground since the start of last year, after having made good money for investors last year. If you had been an investor in gold in Chennai in the last two years, you would surely have made profits from the precious metal. However, those who are buying into it now, would be doing so at higher prices. The best thing would hence be to wait for a while. As they say, what goes up will finally come down and that also hold true for gold. There is no point in chasing the price of the precious metal. Chennai could well offer you plenty of opportunities to buy. All you need to do is be a little patient and you could get prices at lower levels. However, one cannot predict how low prices would go in Chennai, but, what is certain is that there could be some buying opportunities when it comes to gold in Chennai. Look for breach of technical levels for gold in Chennai before buying into the same. A good opportunity to buy, if prices fall below Rs 27,000. However, under the present context it is difficult to see how prices would dip beyond those levels, unless there is some adverse economic policy.

6 February 2017
Gold rates in Chennai set to rise on February 3, 2017

Gold prices in Chennai on February 3, 2017 are set to rise as the Union Budget did not suggest any broad changes. Also, the US Federal Reserve left interest rates steady, after which we have seen some buying in the precious metal. In the past few years the government had made some changes to the import duty of gold which had left some changes in gold rates in Chennai changed. It is important to remember that as and when the government alters gold rates it tends to have a cascading effect on gold prices. There is no way that gold rates in Chennai would see a downtrend in the near future given the strong support that emerges on every downside. If you are a buyer of gold, you should be buying into the precious metal in small quantities at declines. Policies of the new US President Donald Trump have been volatile and this may lead to some increase in gold prices in the international markets, which could also lead to fresh buying in gold prices across the board in India. Gold rates in Chennai today on Feb 3, 2017, were slightly under Rs 28,000 and this may continue for some more time. If you wish to buy gold in Chennai today, we suggest that you wait beyond February 3, 2017. Maybe you would get very decent levels, at which time you could buy into the precious metal. Look at the various popular gold jewellery shops in Chennai, including Lalitha Jewellery.


3 February 2017
Gold rates in Chennai to stay weak

Gold prices in the city of Chennai are likely to stay weak, as the dollar lost ground against a basket of currencies. The US dollar rose over the sharp movement that US President Donald Trump has shown in signing executive decisions. This has led to the dollar gaining ground and gold prices falling in turn. Gold and dollar move in completely opposite directions and when the dollar gains, gold prices tend to fall and vice versa. Dollar gaining strength has largely to do with the policy decisions of the news US president. Gold rates in Chennai have seen a good up move and those who have purchased the metal at lower rates have likely profiteered from the same. Till about a month ago, gold prices in Chennai were hovering around the Rs 27,000 mark, but has seen a sharp up move in the last few days. It is likely that there maybe some more upside in the precious metal in the days to come. However, this would largely depend on how the price of the dollar moves and also the policies that are likely to take place under the new regime US President, Donald Trump.If you are a big buyer of the precious metal, wait for some more time.

29 January 2017
Gold rates Chennai on the rise

Gold rates in the city of Chennai have soared in the last few days. This is because investors in the international markets have grown a little weary of the policies surrounding new US President Donald Trump. There are uncertainties surrounding the policies of Donald Trump as nobody is certain what it would bring to the table. This has and will lead to increasingly volatility for gold prices in India. How volatile it would remain is always a guess. Hazarding a guess with gold can always be a dangerous proposition for a number of reasons. This is because nobody can accurately predict the direction of gold. For one, there are factors that influence the prices of the precious metal in Chennai in a number of ways. For example, local tariffs is the only way local factors influence. Otherwise it is all international factors that contribute to the rise and further rise of the precious metal in Chennai. If you are now wanting to know what are the other factors then you should know that it is the rupee movement against the dollar, which could make gold prices dearer or cheaper in the more long term. So, look for these factors before you make your purchases of the precious metal.

24 January 2017
Gold rates in Chennai set to rise

Gold rates in Chennai are likely to open higher, as the dollar has weakened a bit against a basket of currencies. Chennai gold prices have been on a rise in the last few weeks, after seeing a sharp slide in the month of January. The precious metal has taken cues from international prices which have moved higher over the last few weeks. It is likely that we will see prices remain volatile more than anything else. If you are a buyer, who is looking to buy, it is best to stay away till you get respectable prices. One will have to wait and watch for sometime before you enter into the precious metal. A good option will be to buy into gold ETFs, which have over the years seen a good demand, as they are easy to sell and very liquid. However, this has to still catch-on in a place like Chennai.


22 January 2017
Gold prices stay flat

Gold prices in the city of Chennai were trading flat at Rs 27,350 per 10 grams on Jan 16, 2017. The weekend sees no change in the price of the precious metal, as is always the case. Most of the gains come about because of the change in the gold rates the previous day. International gold prices have been higher in the last few days, which has lent support to gold prices in India.

16 January 2017

Disclaimer: The gold rates are sourced from local jewellers in the city. There maybe variance in rates and prices. GoodReturns.in has made every effort to ensure accuracy of information provided; however, Greynium Information Technologies Pvt Ltd, its subsidiaries and associates do not guarantee such accuracy. The rates are for informational purposes only. It is not a solicitation to buy, sell in precious gold. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates do not accept culpability for losses and/or damages arising based on gold information provided.