The price of gold varies every day due to factors that affect the demand and supply of the precious metal. Investors prefer to invest in gold when there is recessionary pressure in the economy. Indians usually also buy gold for weddings or on auspicious days like Akshay Tritiya.
If you are planning to buy gold in the upcoming wedding season or on the Akshay Tritiya, it would make sense to be aware of the prevailing gold rate in the market. But while the price of 24 karat (KT) gold is easily available on the internet, that information would not be of much use when you are buying jewellery. This is because purity of gold plays an important role in determining the price.
Jewellery is usually made using gold with purity of 22 karats, 18 karats or 14 karats. This is because these levels of purity are considered good in terms of strength and malleability of the metal for making jewellery. Though 24karat gold is considered superior in quality, it is on its own not considered strong enough to make jewellery.
Given below are the prices from the India Bullion and Jewellers Association Ltd (IBJA).
Gold price today
| Gold purity | Price of gold on May 8, 2024 (AM) | Price of gold on May 7, 2024 (PM) | Price of gold on May 7, 2024 (AM) | Price of gold on May 6, 2024 (PM) |
| 24KT (999 fineness) | Rs 71, 725 | Rs 71,668 | Rs 71,775 | Rs 71,816 |
| 24KT (995 fineness) | Rs 71,438 | Rs 71,381 | Rs 71,488 | Rs 71,528 |
| 22 KT (916 fineness) | Rs 65,700 | Rs 65,648 | Rs 65,746 | Rs 65,784 |
| 18 KT (750 fineness) | Rs 53,794 | Rs 53,751 | Rs 53,831 | Rs 53,682 |
| 14 KT (585 fineness) | Rs 41,959 | Rs 41,296 | Rs 41,988 | Rs 42,012 |
*Price is per 10 grams; Source: IBJA rates. The prices are updated with a lag. The AM prices are usually updated by 12 PM and PM prices are updated by 6 PM.
These rates are only for reference. This is because a jeweller can add additional costs in the gold rate. Some of these are shipping costs, insurance costs and storage costs.
Also Read: Today’s gold prices of Kalyan Jewellers, Tanishq, Malabar
If you are buying diamond jewellery, the reference rate will be 18 karat or 14 karat. This is because 22 karat gold is considered too soft to hold diamonds.
As shown earlier, the price of gold depends on its purity. 24KT gold with 999 fineness is considered the purest form. Hence it is the most expensive. A 14KT gold jewellery has only 58.5% of gold in it, hence it is cheaper.
As 24KT gold is too malleable to make jewellery, other metals or alloys are added to it. Hence, it is difficult to find 24KT gold jewellery. Many jewellers also sell gold jewellery of 23 KT and 20 KT.
Why IBJA rates matter
The IBJA publishes daily gold AM and PM rates – opening and closing prices. According to its website, “These rates are benchmark rates for issue of Sovereign and Bonds as per various notifications issued by the Ministry of Finance and Reserve Bank of India. IBJA and rates are also benchmark rates for lending against jewellery by NBFC and Bank as per RBI notification. IBJA has offices in 29 states and is part of all Govt. Committees for Gold.”
What to look for when buying gold jewellery
While gold price plays an important role, it is important to check other things as well when buying jewellery. Following are the things one should check while buying gold jewellery:It is important to ensure that the calculation in the jeweller’s bill is correct. A jeweller arrives at a final price of gold jewellery using the formula mentioned below:
Final price of the jewellery = {Price of gold X (Weight in grams)} + Making charges + GST+ Hallmarking charges.
Also Read: How gold jewellery price is calculated by the jewellers?
If a gemstone or diamond is affixed to the jewellery, the price of such stones must be separately added to the gold value of the jewellery.
Do check the authenticity of the gemstone or the diamond. Jewellers issue a certificate of authenticity. If you are buying diamond, the price of diamond depends on 4Cs – colour, clarity, cut and carat weight.
- Hallmarking of gold jewellery
To ensure that buyers of gold are not cheated, the government has made hallmarking of gold jewellery mandatory from June 16, 2021, for 6 purities of gold in terms of karats – these are 24karat, 23karat, 22karat, 20karat, 18karat and 14karat gold.
Depending on the purity, the price of gold jewellery is calculated.
From July 1, 2021, the government also revised the signs of hallmarking. Currently, these three signs are embossed on a hallmarked gold jewellery – BIS Standard mark, Purity/Fineness grade and 6-digit Alphanumeric code (HUID or Hallmark Unique Identification code).
Also Read: How to check purity of gold using BIA app
From April 1, 2023, the government has allowed sale of gold jewellery items with only the HUID code.
Apart from the gold value in the jewellery, a jeweller also levies making charges. The making charges are usually levied either on a percentage basis or on a flat-rate basis. The making charges levied by a jeweller depends on the design of the jewellery, whether it is machine made or handmade, and other factors.
