Chhatrapati Sambhajinagar : The city witnessed a historic day for gold prices on Thursday. The cost of purchasing 10 grams of gold reached a staggering Rs 67,500. After adding the 3 percent GST, the final price soared to Rs 69,525, effectively rounding up to Rs 70,000 – a price point that left many gold buyers speechless.
This record high price has significantly impacted customer turnout at jewelry stores. Foot traffic has become sparse, with only those with wedding-related needs venturing out to purchase gold.
Sharp rise in prices
The dramatic price increase comes after a steady upward trend observed since the beginning of the year. On January 1, 2024, 10 grams of gold cost Rs 63,350. Prices continued to climb, reaching Rs 63,500 in February. Just two days prior to Thursday's record, gold was priced at Rs 67,000. This translates to a Rs 4,150 increase in the first 88 days of the year.
Global factors driving up prices
Girdhar Jalnawala, a local jeweler, attributes the price surge to China's aggressive gold buying strategy. China is reportedly aiming to become the world leader in gold reserves, prompting significant purchases to bolster their national economy. This increased global demand has sparked competition among developed nations, further driving up prices.
Impact of GST on final price
Jugalkishore Verma, another jeweler, clarifies the final price with GST included. The base price of Rs 67,500 incurs a Rs 2,025 GST charge, bringing the total cost to Rs 69,525. However, with rounding, the final price effectively reaches Rs 70,000 for consumers.