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Gold Price in Warangal today -
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Warangal

Warangal, a modern city today in Telangana was once the helm of power of Kakatiya dynasty in the 12th century. The flavour of the past and impressive architectural heritage can still be seen through UNESCO recognized world heritage sites, such as the Thousand Pillar Temple, Warangal Fort, and Ramalingeswara Temple. Parallelly, there is tremendous economic growth in the city where gold business flourishes. People buy gold enthusiastically for wedding, investment purposes and are always eager to know the gold rate in Warangal. The floral festival of Bathukamma and Sammakka Saralamma Jatara, a festival celebrated in honour the Goddess of Medaram are the most pompously celebrated festivals in Warangal.

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Gold Prices in Warangal for different purity

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Gold Prices in Warangal for last 7 days

Date Gold price 1 gram Gold price 10 gram

Effect of GST on Gold Prices.

GST or Goods and Services Tax came into effect on 1st July 2017 by subsuming the repetitive tax structure of the previous regime and bringing transparency and accountability in the taxation system.

The implementation of this new tax regime has left a considerable effect on the prices of several commodities, of which gold accrues enormous importance due to its national and international demand.

Under the new tax regime, the GST on gold was fixed at 3% with an additional 8% tax on the making charges and import duty of 10%. Later, the making charges tax was revised and reduced to 5%. As a whole, the yellow metal has become expensive by 0.75% in the post-GST era.

A primary reason that accounts for the rising gold price is 10% import duty. However, traders have managed to evade that by importing gold from countries like South Korea, with which India shares the Free Trade Agreement. 

KDM vs Hallmark gold - What's the difference?

The purity and quality of gold is something buyers are always apprehensive of. There are different types of gold that buyers can choose from. Buyers often have a tough time distinguishing between the Hallmark gold and the KDM gold. 

1) Hallmark Gold: Hallmark gold is the type of gold upon which, tests are conducted at assaying centers and is approved for sale by the Bureau of Indian Standards (BIS). Hallmark gold is available in four varieties being 23 Karat, 22 Karat, 21 Karat, and 18 Karat.

2) KDM Gold: KDM gold is a type of gold made combining 8% cadmium with 92% gold. Not only does this tamper with the purity of gold, but it also has certain health risks associated with it because of which the production of this gold has been terminated. 

Why is Gold considered a Precious Metal?

Gold is universally acknowledged as a valuable commodity pertaining to its unique properties, such as:

  • Finite availability

Gold is available in limited quantities. The best estimates suggest that about 197,576 tonnes of gold have been mined throughout history. In fact, if every ounce of this gold is arranged in a cube, each side of this cube will only measure about 21 metres.

  • High Demand

The price of gold tends to rise over time. This is because its demand is exceedingly high in countries India, but the supply is limited.

  • Idle Asset

Gold is a highly liquid, non-consumable asset. Additionally, this metal retains an active market at almost all times. So, individuals can easily convert their gold to cash whenever they want.

  • Economic impact

It impacts economies in terms of contribution to foreign exchange and trade balance. Furthermore, gold is used as a reserve to hedge against inflation in most free-market economies globally.

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.

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Warangal
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