Understanding Gold Prices in India
India is the world's second-largest consumer of gold, absorbing roughly 800–900 tonnes every year. Gold is deeply embedded in culture — worn at weddings, gifted at festivals, and treated as a store of family wealth. Understanding how gold is priced requires knowing both the global commodity market and the local factors that add cost before the metal reaches your jeweller.
How India's Gold Price Is Set Each Day
The rate is derived from the London Bullion Market Association (LBMA) spot price (USD/troy oz), converted to INR, then adjusted to per-10-gram. On top of this, the government levies 15% customs duty and 3% GST on jewellery. WiseSeva shows the standard rate before making charges, as reported by city-level jewellers' associations.
24K vs 22K Gold
24K gold is 99.9% pure — ideal for investment. 22K gold contains 91.6% gold with alloyed metals for durability, making it the standard for Indian wedding jewellery. The 22K rate is typically 8–9% lower than 24K. Always verify the Hallmark (BIS certification) on any piece you buy.
Why Gold Prices Vary Across Cities
Variation stems from state-level taxes, transport costs from import ports to inland cities, and local demand patterns in jewellery manufacturing clusters like Rajkot, Thrissur, and Kolkata.
Silver Rates in India
Silver pricing follows the LBMA spot price mechanism plus customs duty and GST. Silver demand comes from jewellery, industrial use (electronics, solar panels), and investment. Silver is significantly more volatile than gold due to heavier industrial demand exposure.
