Why have investors increased their investment in gold again? | The big change in rules related to gold, check before buying.

 

Why have investors increased their investment in gold again?

 

A situation of economic instability seems to be emerging all over the world. The collapse of two US banks and the subsequent sale of Credit Suisse indicates that all is not well in the major economies of the world. With the dark clouds of recession looming, the sheen of gold has increased. Investors again increased investment in gold.

 

This is the reason why the price of gold in India has reached its all-time high. The price of gold on MCX crossed 60,000 per 10 grams. Only in the month of March, the price of gold has seen a rise of more than ₹ 5,000 per 10 grams. On March 1, the gold price was at ₹55,000 per 10 grams, which has now crossed ₹60,000. 

Now a sharp increase in the price of gold is being seen not only in the domestic market but also in the international market. The price of gold in the international market has gone up to 2000 dollars per ounce. This is the highest level of gold in the international market in the last three years. 

Earlier in July 2020, gold crossed the level of $ 2000 per ounce. Overall, due to the recession in the world, there has been a rise in the demand for gold. It is possible that the price of gold may also reach 65,000 per 10 grams in the next few months. Is this boom in gold or are there some reasons behind it? 

For example, the banking crisis was the biggest reason, due to which we have also seen the demand returning to gold in the market. In view of the recessionary environment, the gold price is expected to remain high this year. However, after the Federal Reserve meeting next week, there may be some correction in gold.

 

Now let us tell you why there has been a sudden rise in the price of gold. The biggest reason behind this is the crash of the global banking system. Apart from this, Central Banks all over the world are buying gold. Because of this gold has got support. The weakening of the dollar is also seeing a rise in gold. 

The demand for gold ETFs and physical gold has also increased. Due to all these reasons, the price of gold has reached the sky. At present, it is good for those who have invested in gold for investment. But those who have marriage or any function in their house, then this is a problem for them, now they will have to buy gold at a higher price.

 

 

The big change in rules related to gold, check before buying:

 

The shine of gold never fades. Whether the price goes up or down, it does not affect the people who are fond of gold because investment in gold has always been given priority in Indian culture and Indians also show a lot of interest in it. Be it marriage or any other festival, Indians buy gold, but do you know that the Government of India is going to change the rules related to gold?

 

This news has created panic among the gold traders. In fact, from April 1, 2023, hallmarking has been made mandatory on gold jewelry. There is also a special rule related to selling gold. In such a situation, it is very important to know the rules not only for the traders but also for us because sometimes we also need to sell gold. 

So let's know what is this rule. From 1 April 2023, the rules of hallmarking of gold are going to change. From April 1, gold will not be sold without six-digit alphanumeric hallmarking, like the 12-digit code on an Aadhaar card, under new rules by the consumer affairs ministry. 

Similarly, there will be a hallmark code of 6 numbers on gold. It’s known as the Hallmark Unique Identification Number or HUID. The ministry says that now only the six-digit hallmark will be valid. Earlier three and four digits of hallmarked gold were sold, they will stop. The motive of this step of the government is to fix the quality standard. 

Along with this, the Indian jewelry market has to be made according to the global tender. Surendra Mehta, secretary of the India Bullion and Jewelers Association, has said that these rules will be in favor of gold customers. The same traders should also do business with this new rule so that credibility remains between jewelers and customers. 

Let us tell you that Gold Hallmark is the certification of the purity of gold. Hallmark is a mark on every piece of jewelry. India uses the Bureau of Indian Standards ie the BIS Hallmark System for the purity of gold. Hallmarking of gold jewelry was started in India in the year 2000. The amount of gold in any jewelry varies depending on its purity i.e. It is determined based on a carat.

 

Sometimes jewelers charge full-carat prices for less-carat jewelry, that's why to eliminate this, hallmarking has been made mandatory in gold. Let me tell you, 940 centers have been set up to give trade mark on gold in the country. The Ministry of Consumer Affairs says that currently more than 3 lakh gold articles are hallmarked with such HUIDs every day.

 

According to the new rules, if jewelry or any product artwork made of 14, 18, or 22-carat gold is sold without a BIS hallmark, then the jeweler can be fined five times the price or imprisoned for up to one year. Hallmarking in gold was implemented voluntarily from June 16 in 2021 in India. 

However, the government also decided to make the hallmarking system mandatory. With effect from July 1 last year, the government has revised the hallmarking symbols for gold jewelry to three. The first sign is the BIS Hallmark or a kind of mark. The second sign is about purity,  That is, it shows the jewelry is made of how many carats of gold. 

The third sign is an alphanumeric code called a HUID number. It has been implemented in 256 districts in the first phase and later 32 more districts were included. The Indian government has decided to implement the hallmarking in 51 more districts. 

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