I’ve been asked on how someone can find the daily gold rate in India a few times in the past couple of weeks, and I think there is a little bit of confusion when people see different places selling gold at different prices, and people feel that they’re being cheated or just wonder why there are so many different prices.
You see different gold rates at different places because some websites show the rate of gold futures, some of gold coins, others wholesale gold, and in some cases it is the NAV of a gold ETF.
To make matters worse, there exists a difference even when the same thing is being sold. So, you can expect a price difference between the gold coin between from one jeweler to another, between various banks, and of course between a bank and a jeweler.
When you decide to buy physical gold – make sure you find out where you are going to sell it after-wards. It is not correct to assume that a higher price at the time of buying will lead to a higher price at the time of selling too.
You could face a situation where you paid a premium to buy gold, but had to sell it off at a discount, so make sure you research where you are going to sell your gold very carefully before you make your buying decision.
Given all this – here are some options on where you can look for gold rates in India.
Track daily prices of gold
This will give you a good measure of how gold prices have moved in the past because Gold ETF NAVs reflect the underlying gold they hold. However, this price is only good to track movement of gold and not buying physical gold because these are prices specific to the ETFs. So, if you add the Quantum Gold ETF to your portfolio then one unit of that ETF reflects half a gram of gold, but you can’t really buy a half a gram gold coin, though I think some banks were giving half a gram gold coin free with bigger purchases some time ago. Did anyone get a free gold coin like that?
If you don’t want to create a portfolio specifically for this then the link below will show you the NAV of Benchmark gold ETF.
|S. No.||ETF||NAV on Nov 8 2010||Source|
Buy Gold Coins
If you want to find gold rate in India because you are interested in buying gold coins, then you will have to use a combination of online and offline search.
The online search works for banks which sell gold coins like SBI because you can see the rate of SBI’s gold coins online on their website, which gets updated frequently.
However, the rate of post office gold coins are not available online, so you will have to necessarily go to a post office to find out the post office gold coin rate.
I haven’t found any prominent jewelers displaying their gold coins rate online, so you will have to visit your nearest showroom to see what the going rate is, or if you know of a place online then please leave a comment, and I’ll update the post.
Here is a list of banks selling gold coins, and links to their prices online. Keep in mind that these gold coins are sold by banks at a premium, and they don’t buy them back, so you will have to go to a local jeweler to sell it. Several readers have faced trouble doing this because the jeweler insists on deducting a greater percentage than they would have on gold coins sold by their own shop. So, please research this carefully before making any purchase decisions.
Apart from this all major newspapers publish gold rates, and you can view it on their site, so if you click on Business Line’s website - you will see the day’s gold rate on the top right.
20 gms gold coin Price on 8th November 2010
|1.||HDFC Bank (includes sales tax, whereas the other banks below don’t)||
|5.||Bank of Baroda||
|6.||Bank of India||
Unfortunately, finding something as elementary as the gold rate in India sounds simple enough, but when you dig deep into it, there are several options you have, and that makes the task slightly complicated.
Where you check largely depends on what your end – goal is, and one thing I’d want to emphasize again is that just because you are paying a premium or a higher price at the time of buying gold doesn’t guarantee that you will get a premium at the time of selling also, so make sure you research how are you going to sell your gold before you make any buying decisions.