Gold has been one of the most preferred forms of investment for people in India. People always invest openly in gold and the reason is that gold always gives good returns. Apart from this, the demand for gold also increases during the time of weddings and festivals.
Except for petrol and diesel, gold is such a commodity in the country, whose prices are monitored by everyone. Gold prices are released daily, but there is a big difference in the price of gold at different jewelry shops. But do you know why gold prices are different at different stores?
Role of association
The price of gold is determined daily by the Bullion Merchants and Jewelers Association, but jewelry shop owners are not obliged to accept this price. It is not mandatory to keep the prices fixed and the jewelry shops can fix the price accordingly.
This is the reason for the difference in the price of different shops. Apart from this, gold making charges are also different at different stores.
Many outlets also accept the prices fixed by the association, so they keep their prices according to the shops and their prices are different and higher. This makes it clear that there is no fixed rule in this entire business.
How is the price of gold decided?
Gold prices include demand and supply, rupee and dollar exchange rates, inflation, the price of gold in the global market, import duty, GST, etc. GST and other local taxes may vary from state to state.