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Gold Price in Varanasi today -
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Varanasi

Varanasi is synonymous with spirituality and regarded as the holiest city in India. It is said so as it is believed that Lord Shiva founded Varanasi, according to Hindu mythology. Home to a mind-boggling 23,000 temples, ancient city lies on banks of river Ganga in Uttar Pradesh. It is a famous holy pilgrimage site and referred to as also Kasi or Banaras. Not just a city of temples, Varanasi is a major industrial centre too. Silk weaving industry, manufacturing units of metals, musical instruments, handicrafts, brassware and gold jewellery are undertaken diligently here. Gold is equivalent to a sacred metal as deities in temples are adorned with gold ornaments which are sometimes offered by devotees. Due to this gold business flourishes in the city with people often checking the gold rate in Varanasi to buy the precious yellow metal. The famous Banarasi saree produced here is the souvenir taken back by many tourists. Kashi Vishwanath Temple, Manikarnika Ghat, Durga Temple, Alamgir Mosque, Dashashwamedh Ghat, and Ramnagar Fort are some of the compelling places to visit.

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Gold Prices in Varanasi for different purity

Purity
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Gold Prices in Varanasi for last 7 days

Date Gold price 1 gram Gold price 10 gram

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.

Difference between 18 Karat, 22 Karat and 24 Karat gold

Karat is the term that is used internationally to indicate the purity of the gold. The karat rate is directly proportional to the purity of the gold. As the karat increases, so does the purity of the gold. The difference between a 24 karat, 22 karat and 18 karat golds are explained below. The 24 karat gold is the purest form of gold that is available. Because of its purity, rather than using it to make jewelry, it is used for investment purposes. The 24 karat gold exists in the form of gold coins or gold bars. The 24 karat gold is followed by the 22 karat gold which is used to make jewelry. The 22 karat gold is a mixture of gold with alloys such as zinc, nickel, or silver. These alloys make the gold harder and fit to be fashioned into jewelry. The purity of the 22 karat gold is 91.67% pure. The 18 karat gold is the cheapest gold that exists. It is a mixture of 75% gold and 25% alloys.

Benefits of investing in gold

In its history of more than 3000 years, never has the value of gold dipped below zero. It has always remained a valuable commodity in the face of the Earth. Gold is a nice option to invest your funds in. Its value not only has remained relatively consistent throughout history, but the demand for it has also been steadily rising. If you are looking to get high returns on your investments, gold is the answer. People also move towards gold whenever recessions occur. In that case, it functions as a hedge against the fluctuations in the market. It is one of the most liquid assets in the world. It can be sold or placed as collateral to obtain funds in return. It is also very storage-friendly. Unlike dealing in the stock market, dealing in gold or identifying its value or quality doesn’t require much skill or expertise as the purity of the gold is also always certified by the seller.

How is Gold’s purity determined?

Gold is one of the most valuable metals known to humankind, and it can be used for multiple purposes. Besides, making jewellery, gold is also commonly used to avail funds during a financial crunch.

Thus, it is vital to measure the purity of gold to make the most of its equity. Following are some of the ways.

  • Karat System

It constitutes one of the most common ways to determine the quality and purity of gold. Denoted by “K”, this measurement system depends on a scale that ranges from 0 to 24. For instance, a god article of 1 Karat means that that particular gold item consists of 1 part of gold and 23 parts of other metals or alloys. It also means, the closer to 24K, the purer the gold.

  • Hallmarking

Most gold articles, including jewellery, come with an inscription called “hallmark” that carries the symbol of gold purity, its fineness, date of manufacturing, etc. Most countries, including India, have mandated gold jewellers to carry the BIS hallmark.

  • Other Methods

Besides these, most traders use conventional acid test or use an electronic gold tester to determine gold purity accurately.

Irrespective of the method, assessing gold purity is essential for both buyers and traders.

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Varanasi
Uttar Pradesh
city
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