Gold Rate Update: Gold can play a crucial role in portfolios due to its low correlation with other asset classes such as equities and bonds: diversity. The potential of gold to operate as a “store of value” can assist reduce risk during times of market turbulence and economic uncertainty. It may be useful as a hedge against inflation. Furthermore, gold has historically had an inverse relationship with the US dollar, which means that as the USD weakens, gold prices tend to climb. Today’s gold price in India is Rs 5,335 per gram for 22 karat gold and Rs 5,820 per gram for 24 karat gold.
Price of gold in some major cities
|Name of cities||Prices of 22k gold in rupees|
Gold Rate Update: On MCX
Investors can gain exposure by purchasing shares in gold mining firms, either as individual equities or as part of a fund. When purchasing gold in various forms, investors must consider transportation, storage, and insurance, as well as paying a premium over the current gold price. On October 5, 2023, the 10-gram gold futures contract on the MCX fell 1.05 percent to Rs 57468. Silver futures contracts with delivery dates of September 5, 2023 presently have a value of Rs. 68731, which is Rs. 0.82% higher than the contract’s value on December 5, 2023.
Gold funds that own the metal
Some mutual funds and exchange-traded funds also provide gold exposure to investors. The value of funds that provide the most direct exposure tracks the price of gold. The fund bears the cost of maintaining physical supplies and passes it on to investors via the expense ratio.
There are various disadvantages: Because some gold funds are taxed as collectibles, they do not qualify for the lower long-term capital-gains rates that stocks enjoy. Furthermore, because they generate no revenue, the expenditure ratio can eat into principle year after year.
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