Chennai is the capital city of Tamilnadu. It is the cultural and technology hub of Tamilnadu. It is also the 4th largest city in India and leading commercial city in South India. While talking about the economy, the impact of gold market also presents. Chennai is one of the leading gold consumers in India. Major Gold retailers landed their showrooms at Chennai. Kalyan jewelers, GRT jewelers, Joy and José Alukkas, Prince jewelers, Tanisq all spread their branches in Chennai .The leading textile industries Chennai silks and Pothys also embarked into gold market.
Today Gold Rate in Chennai
Why the gold retailers are increasing in Chennai? Gold is considered as the most auspicious metal in South India particularly in Tamilnadu. Every celebration including wedding, birthdays, anniversaries include gold ornaments as the main presentation. People also thoughts the amount of gold increase their prestige among the society. So the demand in gold in the state is the main reason for the increase in gold market in Chennai.
Gold is consumed by people in the form of ornaments, gold coins and gold bars. The most demanding form of gold by the common people is jewelry and coins. They are used primarily for personal use and for gifting purpose.
How the gold prices are fixed and what are the factors affecting gold prices? As all of us know, gold is a natural metal which is mainly sourced and imported from foreign countries. The production of gold in India is very low as compared to the demand and we are in need to import it. So the factors involved are supply chain of gold in the market, the import duties, US dollar and international relationship. The gold rate fluctuates according to the above conditions and prices are fixed.
In India the gold prices are fixed by the Indian Bullion Jewelers Association (IBJA) who then discuss with the top 10 gold dealers in India. They fix the rates by assigning a ‘buy’ and ‘sell’ quotes with respective to the exchange value of Rupees, import rates etc. So the gold price is a day to day changing value. The gold is mainly imported by banks in India. The retailers get the gold from them.