Mumbai, the commercial capital of India, holds one of the most famous markets for gold in the country. It has the highest number of sellers and dealers in the city. The international gold price defines the price of the gold in Mumbai. There are a number of compelling determinants that variate the gold price in the city.
Gold is available in different forms in Mumbai like jewellery, coins, ornaments, ingots, bars, etc. It is a traditional commodity which has been traded from traditional times. It is traded on different stock exchanges like National Commodity and Derivatives Exchange (NCDEX) Multi Commodity Exchange (MCX), and National Spot Exchange (NSEL) in India.
Being one of the most populated cities of the country, the gold prices here indicate the significant buying patterns of people. One will find the abundant of dealers and probably the largest gold dealers in the country too.
Always check the purity of the gold. The gold is denoted in karats. Thus, a 24 karat is 99.9% pure. On the other hand, 22 karat gold is 92% pure. So, each karat is 4.2% pure gold that means a 14-karat gold is 58.33% pure while 18 karats are 75% pure. 14, 18 and 22 karats are mostly used to make jewelleries while 24 karats are not. This is because other metals mixed in gold make it stiff to hold the shape. The purity can be seen from the hallmark posted by the testing agencies to approve gold.
There is labour involved in making a suitable jewellery. This adds up to the cost of jewellery you buy. One should try to insist on fixed making charges for making the gold purchase less expensive. It is the smart way to go about paying only for what you get.
The trade of jewellery in India mostly takes place through weight. Heavy the jewellery, more expensive will it be. One might end up paying an amount which is actually not present in the jewellery. To avoid such situation, check the weight. It is generally the precious stones like diamond and emerald added to gold to make the jewellery heavy and costly.