Gold rates are again moving up in the country due to approaching marriage season irrespective of the global downward trend. As traders are buying to keep stocks for the demand in the marriage season, the rates have gone up a bit- Rs.120 per ten grams of gold. Silver also gained upward trend by Rs.200 per Kg.
Gold rates in the retail trade in the State differ from shop to shop and city to city. Even gold coins rates are differ from Bank to Bank. Why so and what makes the Gold rate fixed?
Internationally the rate of Gold is fixed once in two days by the Bankers in London in their meeting to decide the rate.
Banks take Hongkong exchange rates in the morning, London metal rates in the afternoon and New York Mercantile Exchange rate in the night. Then they adjust their own rates in accordance with the market fluctuations.
Vendors of Gold and Silver jewelry follow their own Association fixed rates which depends on many things like import rate, gross margin, gold reserves and also commodity market rate. Retailers follow their wholesalers’ rates.
There is also a lot of difference between 18 and 22 carats and the traders use their technique there and adjust the rates. And again making charges added vary between 8 and 25%. All though the rates are market directed ones with small differences, shrewd traders make use of the difference in the carats to offer discounts to attract customers. Making charges also depend on the design of the ornament which are separately shown by some trades and some add it in the price itself.
If you see the variation in the price of Gold and Silver in the Country, different taxes prevailing in the States make them arrive at different prices.
As Gold and clothes form important part in the performance of a marriage, gold prices are certain to go up during the marriage season, says one of the gold traders with confidence.