Today's Gold Rate in Chennai

Gold Rate History in Chennai

Hallmarking Rule: Impact on Chennai Gold Price

The Ministry of Consumer Affairs, Food and Public Distribution has made hallmarking of gold jewellery mandatory from today. Certain guidelines have been issued by the ministry in this regard after consultations with stakeholders. It has come into effect initially in 256 districts which have assaying marking centres.

As per the new guidelines, jewellers with annual turnover up to Rs.40 lakh will be exempted from mandatory hallmarking. For export and re-import of jewellery as per the trade policy of the government, watches, fountain pens and special types of jewellery are also exempted from hallmarking. Gold of additional karats 20, 23, and 24 will also be allowed for hallmarking going forward. The ministry added that old jewellery can be hallmarked as it is by the jeweller if feasible or after melting and making new jewellery. It added that a committee constituting of representatives of all stakeholders, revenue officials, and legal experts will be formed to look into the issues that may emerge during the implementation of the scheme.

The move to hallmark gold jewellery will enable consumers and jewellery buyers to make a right choice and save them from any unnecessary confusion while buying gold. It will also help develop the country as a leading global gold market centre.

It needs to be mentioned here that in order to give adequate time to the manufacturers, wholesalers and retailers of gold jewellery, no penalties will be imposed till August end.

Where to Buy Gold in Chennai Today?

There are various certified stores in Chennai from where gold can be purchased. However, some of the popular gold jewellers in Chennai are NAC Jewellers, Lalitha Jewellery, Bapalal & Co. Jewellery, Nathella Sampathu Chetty Jewellery, Prince Jewellery, G R Thanga Maligai, Mehta Jewellery, Vummidi Bangaru Srihari Sons, and so on.

Gold as an investment in Chennai

The following are the different types of investment options for gold:

1. Bullion - Buyers of bullions typically purchase them in the shape of bars. The amount of precious metals included in bullion, which is determined by its purity and mass, determines its market worth.
2. Jewellery - People choose to purchase gold jewellery since Chennai is known for its collections of bridal jewellery.
3. Coins - As part of their investment, investors purchase gold coins. In Chennai, gold coins come in a variety of weights, as well as karats.

Impact of GST on Gold Price in Chennai  

The largest tax reform passed since independence, the Goods and Services Tax (GST), was warmly received in India on July 1. Since then, the topic has received a lot of attention, especially in relation to how the GST would ultimately impact the Indian economy. The GST council arrived at the final rates for products and significant services by merging the indirect taxes for all Indian states. The finalised GST tax rates for a range of products and services are 0%, 5%, 12%, 18%, and 28%, with the 18% tax rate being applied to approximately 50% of all goods and services.   

Due to the GST, the price of gold in India has climbed somewhat from the 2% it was in most states prior to the tax to 3% for gold and 5% for manufacturing charges. All households have always needed gold jewellery, according to the head of the Chennai Gold and Diamond Jewellery Traders Association. The GST has also had an impact on gold prices in Chennai. Gold taxes in Chennai were 1% before the introduction of the GST; they are currently 3%. Buyers of gold would be required to pay a GST tax of Rs. 400 per sovereign. Therefore, buyers will be liable for both the GST tax and Chennai's exorbitant gold price. 

Buying Gold in Chennai: What to Watch For

If you are purchasing gold in Chennai, make sure to consider these factors: 

Purity: The purity of gold is now measured in terms of karats; 24 karat gold has a purity level of 99.9%, while 22 karat gold has a purity level of 92%. Every karat of gold contains 4.2 percent of pure gold, hence 14 and 18 karat gold only contain 58.33% and 75% of pure gold, respectively. Jewellers utilise gold that is 14, 18, or 22 karats in order to create jewellery since 24 karat gold is not suitable. Always certain that the gold is pure before purchasing it. It is recommended that you buy hallmarked jewellery because it has been examined by trustworthy agencies. The hallmarking process represents the purity of gold.

It is advised that you purchase hallmarked jewellery because it has undergone inspection by reputable organisations. Hallmarking is a symbol of the purity of gold. 

Weight of Gold: Most gold jewellery sold in India is weighed and priced accordingly. Gold jewellery studded with precious stones such as diamonds and emeralds are heavier which makes them costlier. Keep in mind that every piece of jewellery is weighed separately by the jeweller.  

Identification Mark: The purity of gold is certified by the BIS. It authenticates gold’s purity. The purity of gold is verified by the BIS through one of its assaying centres. The purity level is then engraved along with the name of the merchant on the gold item to ensure that customers are not deceived. The BIS has a limited reach with approximately 331 assaying centres scattered throughout the nation. You should therefore exercise extra caution when purchasing gold jewellery.  

Making charges: To compensate the costs of the labour involved in making jewellery, all jewellers levy making fees. As a result, you can pay a different amount as a making charge depending on the price of gold. The making fees are in the 6% to 14% range. Making fees will be reduced for jewels produced by machines or with minimal creative detail. When ordering jewels in big quantities, several jewellers offer fixed production fees. Up to 25% more than the current price of gold may be required to purchase a piece of jewellery with outstanding design.  

Sales Invoice -  Many jewellers may give you a cash memo instead of an invoice, which has questionable legal weight if there is a disagreement. Request an official invoice including the name, address, VAT, and TIN of the retailer. Make sure all the details of your purchase are correct and comprehensive. Additionally, you can request a purity certificate or a guarantee. Be aware that certain jewellers might charge a fee for the issuance of a purity certificate. Finally, review the jeweler's exchange and return policies one more time.