Gold Price in Tamil Nadu today -
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Tamil Nadu

The southern jewel, located on India’s eastern coast is the state known as Tamil Nadu. The state inhabits a distinctly unique place in India’s cultural heritage and a gem for tourists who love to explore nature in its true form. Sharing the maritime border with Sri Lanka, this state is known to the most urbanized and industrialized state of India. In recent years, tourism in Tamil Nadu has reached new heights. People love to spend money on gold jewelry. Also, keeping a track of gold rates in Tamil Nadu is usual. With maintaining the second-highest economy in the country, the state beckoned being a popular tourist destination worldwide.

Gold Prices in Tamil Nadu for different purity

Purity
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Gold Prices in Tamil Nadu for last 7 days

Date Gold price 1 gram Gold price 10 gram

Gold Price in Major Cities

City Gold Price Change

What is QE and how does it affect Gold Prices?

The intention behind applying quantitative easing is to counter the situation created by an economic slump. Typically, during an economic downturn, the demand for credit goes down and deflation hits. Even though central banks around the world use interest rate manipulation to tackle such situations, QE is usually their last resort.

Points to Know about QE

  1. It is a part of a country’s designated monetary policy
  2. Even though it existed for a long time, the recession of 2008 saw its implementation on a broader scale.
  3. In QE, central banks print new currency to buy assets and inject more cash in the system.
  4. It affects the value of a currency
  5. It works effectively to counter deflation and stimulate an economy
  6. QE is considered as a short-term measure
  • Quantitative Easing and Gold

The relationship between QE and gold is inversely proportionate. It means when money is injected into the system, the price of gold goes down. Although extra money makes it seem like the gold prices are soaring, that isn’t the case.

With the implementation of this tactic, the gold prices largely remain the same, grow but at a slower pace, or even go down during certain instances.

Here Quantitative Easing Tapering is also vital to know about. It means when a central bank agrees to stop new currency printing, which results in a shortfall in the system. So, the flow of cash goes down, but the amount of gold remains the same. Hence, the price of gold increases steeply.

How is gold rate determined?

Gold rates in India are determined by an array of factors. It could be the supply of gold in comparison to its demand both locally as well as globally, inflationary rates, the gold reserves present in the possession of the government, ongoing import and interest rates, taxes and levies. These are only some of the several micro and macroeconomic factors that could affect gold rates.

As a rational borrower with a personal stake, you need to be aware of the gold rate in cityname. There is almost always a variation between the gold price in the market as compared to the valuation that the lender offers. This is because lenders follow a unique way of evaluating gold. They arrive at the price by taking the average of 22 Karat gold from the past thirty days. Hence, your gold valuationdepends on this average price as well as the lender's loan-value ratio. Recently, the RBI has ruled that lenders can disburse loans of up to 90% of gold's market value until March 31, 2021.

Difference between 18 Karat, 22 Karat and 24 Karat gold

“Karat” is the internationally recognized term used to denote the purity and weight of gold. Higher the Karat, better the purity of gold.

1) 24 Karat: 24 Karat gold is the purest and most expensive form of gold found in the market. Owing to it’s pliability 24-Karat gold is not usually used to make jewellery and is instead used for investment purposes, in the form of coins or bars.

2) 22 Karat: 22 Karat gold is generally used in the jewellery industry. In this type, pure gold is mixed with several alloys like zinc, nickel, or silver to make the gold harder and fit for jewellery. Generally, 22 Karat gold is 91.67% pure.

3)18 Karat: 18 Karat gold is the gold that is prepared by mixing 75% gold with 25% other alloys. 18 Karat gold is the cheapest type of gold available in the market.

Benefits of investing in gold

There are several reasons to put your gold to good use. For starters, people are always looking for the best way to generate high returns. On that note, gold has forever been the conservative investor's best avenue for yielding high returns. With the introduction of Gold ETFs and Sovereign Gold Bonds, the demand for gold has been steadily increasing. The top advantage of gold against cash is that the gold gram rate has never dipped below zero in it’s more than 3000-years' history. Gold also functions as a hedge against financial market fluctuations. Hence, whenever there is a recession, people move towards gold. Additionally, gold is a liquid asset, which means you can either sell it or pledge it in exchange for instant cash loan. Unlike physical money, gold is portable and can be stored anywhere. Lastly, identifying high-quality gold does not require expert understanding. Anyone can buy gold according to its purity while the seller's certificate acts as the proof of its purity. 

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Tamil Nadu
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