Ahmedabad is an integral cog for the gold and jewellery sector of India. Nicknamed as the Manchester of the East, Ahmedabad is the major originating point of India's average annual consumption of 800 tonnes of the yellow metal. The fifth most populated of Indian metropolis on the banks of the Sabarmati river has a rich legacy and business legacy when it comes to trade of Gold and jewellery.
Rates can change at least twice in the day and Sify.com ensures readers get access to these latest and updated rates for their gold and bullion related investments. Although rates across Gujarat are dynamic, the rates for Ahmedabad are considered as benchmark across several cities of the state. It is important to understand that these rates are prescriptive in nature and also reflects with the trends in other important cities of Gujarat such as Vadodara, Rajkot, Bhavnagar, Mehsana, Surat, Junagadh, Anand, Bharuch, Ankleshwar, Patan, Morbi, Mehsana and Palanpur. Smaller cities such as Mundra, Ambaji, Valsad, Silvassa and even the union territory of Daman and Diu have jewellers quoting similar rates as that of Ahmedabad. The only difference we have spotted in recent times is the rates with Gandhhinagar and Jamnagar.
Ahmedabad & Gold:
In contemporary times, Ahmedabad has been known as the bullion hub of India. For instance, a futures contract on the MCX trade is called Ahmedabad Spot. After the implementation of GST, Mumbai took over the city's tag of jewellery-hub. However, the GIFT city near Gandhinagar promises to pull Ahmedabad's gold trade back in action. The GIFT IFSC is soon expected to have a bullion exchange. Union Finance Minister Nirmala Sitharaman in Feb'2020 announced that a local bullion trading centre would result in more jobs, enhance India's position worldwide and result in better discovery of the price of Gold.
The city's bullion trade is an important source of importing bullion. However, after implementation of GST in 2017, Mumbai has snatched the title of bullion-hub from Ahmedabad. Traders found it economically tough to pay 0.1 percent on Gold and Silver as Maharashtra levied an Octroi on precious metals. A levy of 1 percent of VAT also used to exist which forced businesses to conduct vaulting and storage in Ahmedabad while the retail business was more towards densely populated cities such as Mumbai.
It would not be wrong to state that Ahmedabad may have been one of the top cities which helped flourish India's gold-trade. In fact, the Gold trade business in Ahmedabad is as old as the Mughal rule. A tale has it that Ahmedabad in 1571 constituted twelve major industries of which gold and weaving silver threads was an important one. This industry yielded the then government a revenue of 155,000 pounds. The Gujarat Sultanate of the Mughal era was key to revenue and Ahmedabad's story was soaked in gold, jewels and fine cloth. The excellent craftsmanship, availability of ports and the fledgling trade resulted in it getting equated with Venice.
How are Gold rates calculated in Ahmedabad:
The jewellers association of Ahmedabad and at least ten others active in the state participate in the rate-discovery process. Rates for bullion or ten grams of 24 Karat Gold are affixed based on international trends. The trends on the MCX and other domestic exchanges is factored when it comes to determining rates for bullion.
For jewellery, the jewellers look at factors such as supply-demand, arrival of festive period, availability of raw materials and karigar costs for tallying the prescriptive rates. Accordingly, a committee arrives at the rates for the day. Rates, similar to practice across INdia, are changed twice by jewellers. Some may prefer to trade with a single rate (mostly morning) through the day. However, the well-established ones usually give the benefit of changing rates to customers.
Sify.com ensures that readers are offered the best information and accordingly rates are updated twice every session, except for Sundays and national holidays.
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Popular Gold Investment Avenues in Ahmedabad
Gold is not just a metal but a style-statement and a way of living. In other words it is deeply associated with culture. Hence, you will find Amdavadis investing and buying in the yellow metal proportionate to their investment goals and societal standing. The Ahmedabad culture is ingrained in entrepreneurial traits and hence you will find even the average Amdavadi with sound knowledge on investments.
1. Trading in Bullion: Usually, bullion trade involves T+1 settlement and the buyers have to compulsorily take deliveries after expiry of contract. Many prefer to stock bullion by parking it with safe lockers. These lots can fetch great returns once the market improves. The best avenue to trade is the MCX.
2. Gold Jewellery: Jewellery is a style statement more than an investment and it is understood that investing in small investments regularly can help save money for a rainy day. Also the average Amdavadi understands the concept of compounding and using Gold to safeguard savings from inflation, pretty decently.
3. ETFs: These are quite a hit with the new-age millennials who use the services of a brokerage firm to invest in ETFs. There is also a provision to invest in quantities as small as a few parts of a gram.
4. Feeder Funds: Quite a number of brokerages offer investing in global feeder funds to get better returns on Gold than what a physical delivery can promise. .
5. Sovereign Bonds: The most trusted gold bond administered by the Reserve Bank of India has found acceptance among the working class as a no-frills way to invest in Gold.
What causes rates in Ahmedabad to fluctuate?
The Ahmedabad spot rate is a major driver of gold rates. And the Ahmedabad Spot rate has several factors resulting in constant change. These include the strength of the US greenback, the strength of the rupee relative to the INR, supply demand and the international spot rate. Sify.com ensures that readers are informed of the latest trends and news pertaining to Gold rates. Bookmark this page to get the latest update on gold. We also recommend you to follow Sify Finance to stay abreast of the latest happenings.
Tips for first time Gold jewellery buyers in Ahmedabad:
For those new to Gold investments, the general advice is allocating at least 15 percent of the financial portfolio to Gold backed instruments. These can always come in handy when other investments fail. The theory of allocation changes according to investor mindset and the expectations from a financial portfolio, however Gold investment is an excellent way to safe-guard your returns.
If you are starting afresh, the Sovereign Gold Bond is a no-frills approach. In case you are keen on returns, you should try investing in ETFs, here is a guide to investing in exchange traded funds.
Gold investments in jewellery can get tricky and hence we advise following these 5 steps to ensure you have a good experience.
1. Once you have decided on the choice of jewellery, ask for the weight of Gold.
2. Compare it to the per gram rate mentioned by the jeweller. Compare this number with the rates mentioned here. Try negotiating on the rate per gram.
3. You can also negotiate on the making and wastage charges.
4. It is a good idea to check with other jewellers on the price prior to buying or selling.
5. Check if the jewellery has a BIs and hallmark.
6. Do ask for buyback terms at a later date and a bill. A transaction devoid of a bill may sound cheaper however a bill is a proof of transaction, quality and your legal purchase.
Popular Jewellery Ornaments in Ahmedabad:
Bali, Bajuband, Kada, Nath, Rani Haar, Mathapatti, Kundan Batti have a Gujarati-connection thanks to the designers who make them look vibrant. During Navratri, women usually wear huge jhumkas, maang tikka sets, and tassels. The peacock Jhumkas are reported to have originated here and so are the exquisite Bridal, ethnic and tribal art-works visible in Amdavadi markets. Also, designers from Mehsana, Rajkot, Junagadh, are popular for their Karigar. Do give a thumbs-up for their bead work, enamel, and artistic detailing.
Good time to buy Gold in Ahmedabad:
The city is renowned for observing festivals such as Uttarayan, Navaratri, Deepavali, Raksha Bandhan, Eid-ul-Fitr and Christmas. Krishna Janmashthami.
Time-Trusted & Popular Gold Showrooms of Ahmedabad:
In the 17th century, Shantidas Jhaveri who hailed from Marwar was the wealthiest merchant in the city. His major business was lending money and trading in bullion. Jhaveri was among the pioneers of establishing relationships in the trade of gold and jewellery with the Dutch and British east India companies. He had such clout with the Mughals and the British - emperor Shah Jahan referred to him as Mama while he negotiated with the British government to pay him for loss to pirates.
Manek Chowk in Old Ahmedabad manages to see jewellery business in action during the afternoon. The jewellery of Gujarat can be breath-taking. The depth of detailing, extensive use of metals, Karigari can leave anyone spell-bound. It is after all Vibrant-Gujarat.
From social media, we also found older jewellers such as Suvarnakala, Bhagwati Jewellers, Talwar Jewellers and Kalamandir as some of the credible names you can trust upon.
The places to buy jewellery are spread through the city. In fact many jewellers who began business in Old Ahmedabad have branched out across the state into cities such as Vadodara, Gandhinagar. They have expanded north towards Banaskantha, Aravalli, Mehsana and Patan and even South towards Vapi, Surat, Valsad and Ankleshwar.
In recent times, the bigger chains such as Tanishq, TBZ, Kalyan Jewellers and others have a presence in the city. The city has over 5,000 jewellers spread across Adalaj, Ambawadi, Bokal, Ellisbridge, Kalol, Naroda, Sabarmati, Satellite, Thaltej, Viramgam, and prominent locations. For readers new to the city, Dhalgarwad is renowned for Silver jewellery while Manek Chowk is known for Navratri-Garba ornamental collections. The streets near Rani no Hajiro and Lal Darwaja are always busy with tourists.
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