Considering the price of gold, various factors determine it.Although there are many reasons for this, the main reason is that it is a factor in calculating the economic position of a country in the world and an important means of changing the value of gold to equalize the value of exports and imports of a country.
The most important reason is inflation
Whenever the value of money falls, the price of gold rises.
Then its demand will also increase there.
Gold Reserves of Govt
When doing so, the amount of gold flowing into the country will decrease and its price will increase.
Government interest rate
When the interest rate of banks (on loans) increases, the flow of money among people will be restricted.
Then they may not be able to buy any more gold.
So the price of gold may fall (in the name of Audi discounts) to induce them to buy.
All these determine the price of gold only.
Price of Ornamental Gold= (Gold(in grams)*its price)+ Wages for making+ GST (3%)
The price of jewellery gold should be calculated as above.
On what basis does the price of gold fluctuate?
Share in economic status – The value of a country's stock is an important factor in calculating its wealth. When it comes to reserves, the money held by the respective country does not compare well to the global comparison. The whole world needs a common commodity of value.
In view of this, product and product inventory and long-term storage are not easy to calculate accurately. Therefore, silver and gold, which are ubiquitous and do not vary much in value from country to country for easy storage, are used. Crude oil is an essential commodity around the world, like gold, it is also an economic calculus accepted by all countries.
Likewise, the US currency, its dollar, is the currency accepted in trade around the world, so its reserves help in economic calculations. Thus every country does not stockpile the same commodity to maintain its economic position. It all depends on the availability of goods in the respective countries and the export/import business requirements. All countries keep gold, silver and US dollar in their reserves.
The stock level of each commodity will be changed by taking into account the change in value of some of those commodities in the world. As the price of gold plays an important role in the global economy, its value changes day by day according to the global economic changes.
The stock level of each commodity will be changed by taking into account the change in value of some of those commodities in the world. As the price of gold plays an important role in the global economy, its value changes day by day according to the global economic changes.
Role of Trade- As mentioned earlier the important role in world trade is the value or price of crude oil, gold, silver, US dollar etc. It will be easier to see with a small example. There is a need for crude oil all over the world and it is a business.
Suppose India buys oil from Saudi Arabia today
Let us assume that the price of gold in India today is 1 lakh rupees per kg and the price (value) of the dollar is 50 rupees. If so. The value of gold in our country is 2000 dollars per kg. Let's assume that the price of gold in the world arena is 2010 dollars per kilo (almost 2000 dollars).
Let us assume that the price of gold in India today is 1 lakh rupees per kg and the price (value) of the dollar is 50 rupees. If so. The value of gold in our country is 2000 dollars per kg. Let's assume that the price of gold in the world arena is 2010 dollars per kilo (almost 2000 dollars).
Let's say Saudi kept its oil price at 2 dollars a barrel yesterday which is 100 rupees in our rupee. Even today the price is the same 2 dollars and the value of the dollar here is 50 rupees and the value of gold is 2000 dollars per kilo.
But the Saudis doubt that the value of the dollar will decrease, or the dollar reserves are high, so they decide to buy it in gold and give it to India in gold. When asked, India will give two thousand dollars for one thousand barrels, and if it is gold, I will give 800 grams. It is dollar so a kilo gets the value of about 2500 dollars in our country.
While the value of the dollar is decreasing in the global arena, let us assume that the value of the dollar decreases and one dollar is 45 rupees in today's global economic calculation. Now a kilo of gold is valued in dollars.
If we think of buying it as gold and then buy the same amount of gold from another country, our gold reserves will not decrease. But as the dollar depreciates, the price of gold will rise. So the value of our total gold reserves will also increase.
In this way, the price of gold is calculated and changed daily in our country according to many other factors such as the oil price that changes in the world, the change in the value of the US dollar and the European Euro, the main currency of world trade, the amount of gold in our hands, and so on.