gold jewellery on Dhanteras eve and around Diwali because it is considered auspicious. However, it is important to note that gold jewellery is normally available in either 22karat, 18Karat or 14Karat purity. This is because gold with 22Karat, 18Karat and 14Karat level of purity is considered good — in terms of strength and malleability of the metal -for making jewellery.
In the case of diamonds set in gold, 18Karat gold is used to make the jewellery as purer gold of 22 karat is considered too soft to securely hold the diamonds. The price of gold quoted by the newspapers is 24Karat gold (999 purity) which is traded on the MCX. As the purity level of 22Karat will be lower than 24Karat gold, the price will also be on the lower side.
Given below are the prices of 22Karat, 18Karat and 14Karat gold from India Bullion and Jewellers Association Ltd. (IBJA). Prices in the table are as on November 8, PM rates.
*Price is per 10 grams; Source: IBJA rates. The prices are updated with a lag. The AM prices are usually updated by 12 PM and PM prices are updated by 6 PM.
These above-mentioned prices are to be considered as reference rate only. This is because there can be additional costs that a jeweller has incurred on the gold. These are different from the making charges that are levied on the jewellery. Some of these expenses can be shipping costs, insurance costs etc.
The IBJA provides gold rates twice a day. There are Gold AM (first half of day) and PM (second half of day) rates. These rates are benchmark rates for issue of Sovereign Gold Bonds as per notifications issued