The concept of trade in the world was from a very early age. You give me something I will give you in return something else. The prices are determined as per the market demand. Gold Price in India has taken a peak like a volcano. Late in the eighty`s it was only about a few hundred rupees per 10 gram of gold.
Earlier Prices and the units
Before we get into the detailed Gold Price let us have a quick view about the units used here. Gold is normally sold in kilograms. There are bars available of one kilo. Apart from these denominations bars are available for 8 grams and 10 grams also. The purity of gold is measured in carets. 22 carat gold is considered to be the purest form of gold. The jewelry Gold Price depends on lots of factors. In India we have the concept of BIS hallmark. Gold ornaments having the BIS hallmark is considered to be the genuine one. The governments have standardized the mark of BIS as 916. Those hallmarked gold are always costly because they are guaranteed free from the impurities.
Normally the gold requires a mixture of some other metals to be amalgamated with to form a solid structure. Copper is one such metal which is more often amalgamated. Those amalgamated Gold Price is less than the hallmarked one. The demand of essential commodity has risen that much, that gold is now priced at thirty thousand per ten grams. The rise in Gold Price is seen only in the last twenty years. In 1995 when the markets started to get globalised, and international gold’s was allowed to be traded inside the country, the prices started growing up. It has become an asset for a person. So often it is seen that people are buying gold coins and bars which they can later exchange from the same exchange or may make use of the bar to make a new jewelry.
The inflation and the effects
The banks are into this business of selling solid gold. Gold Price in banks generally doesn’t vary much from bank to bank as they are regulated by the central government. The inflation in the prices is really a matter of annoy for the common people. India is a Land of villages. The villagers have a concept of giving gold ornaments to their daughters when they are married in the form of dowry. Though the system is now abandoned, but in many villages the practice is still in effect. Gold id much demanded at those situations.
The other interesting fact about the Gold Price is the seasonal dependency. Normally the value is high only in the winter season. Winters show a lot of marriage ceremonies. Diwali is the other time when the price rises. The demand during those times grows that high that to meet the demand prices need to be raised.
The government has taken a lot of steps to control the Gold Price by setting up a lot of committees, whose recommendations are maintained to meet the common man`s expectations. We all are waiting to see if the prices come down from thirty thousand to twenty thousand at least.