Gold Rate In Mangalore
The residents of Mangalore just need an excuse to indulge in gold. They buy gold jewelry for propitious occasions, religious festivals, weddings, etc. During the time of Dhanteras and Akshaya Tritiya, you will find long queues outside every jewelry store. Gold is also a good investment.
Gold rates in Mangalore keep changing depending on national and global factors. Some of these factors include oil prices, demand and supply, imports, tariffs and strength of the dollar. The price of gold reached a 4-year low in India. According to business experts, gold prices in Mangalore are not likely to increase in the near future.
Rural India is responsible for most of the gold demand in India. 60% of this demand is during the wedding season. Since more than 45% of Indias population is below 25 years of age, several weddings are predicted to take place which will make the gold demand soar.
Gold Rate in Mangalore
What is the importance of Gold in Mangalore?
The coastal city of Mangalore, Karnataka is known for two things- its appetite for delicious fish delicacies and its love for gold. Mangalore has many jewelry shops and showrooms including well-known national brands branches as well as several local jewelers, with the goldsmith profession being one of the oldest in this city.
Why do people in Mangalore invest in Gold?
This affinity towards the yellow metal is evidenced by the long queues outside the jewelry shops on auspicious occasions such as Dhanteras, Akshaya Tritiya and so on. Such crowds are also seen during festivals and wedding seasons.
The citizens of Mangalore consider Gold as the most prudent investment and saving option. This is because Golds inherent value allows it to act as a hedge against inflation and depreciation which reduces the value of other assets.
What are the Factors Affecting Price of Gold in Mangalore?
The Gold Prices in Mangalore depend on a multitude of domestic and international factors. India imports gold and pays for it according to the price of gold in the international market, leading to major foreign exchange outflow. This outflow is also dependent upon the dollar-rupee currency exchange rates. The US Dollar and Gold prices in Mangalore, rest of India and in fact the rest of the world are psychologically related and re inversely proportional. This means that a stronger dollar leads to lower gold prices and vice versa. Domestic tariffs and duties further impact the calculation of Mangalores gold price.
Gold prices fell by a composite 28% ever since the bull run of gold ended in 2013. Mangalores gold prices touched a four-year low in India and a Five year low globally. IN 2017, the gold prices are likely to continue the descent.