Why Gold rate in kerala goes ups and downs??
Gold rate in kerala…..Gold is very famous and auspicious in Hindu tradition and very demanding in all cultural people. In India, there is a tradition to wear gold jewelry in all festivals and functions. Gold is the purest form of mined material that we get after several processes in mine and lab. In Kerala Gold is the very famous and needy thing that’s why this is different as compare to other states in India. People considered the Gold rate in Kerala that wearing gold is good for health. Due to the Gold rates in Kerala, Kerala people consider it a good status, which increases your personality and your wealth status in society.
Main points which impact Gold rate in Kerala
There are many reasons for having up and down in the Gold rate in Kerala, as it depends on the daily movement and demands in the international and Indian markets. We have seen that the demands of precious metal have been decreased in Kerala, which has led to subdued price demand.
Currency movement is another factor that impacts gold rates in Kerala, as we are seeing that the rupee price is weakening against the dollar.
Due to the weakness of Indian currency in the International market, it causes fluctuations in the Gold rate in Kerala and India. In Kerala, Gold is considered an essential and main asset, that’s why it plays a vital role in marriage functions, Parties, festivals, and other kinds of celebrations.
Here we listed few of the main factors which affect the Gold rate in Kerala :-
• Global market price affects Gold rate in Kerala
Indian is the country that imports the largest volumes of Gold as per the demands and requirements in the Indian market. It is very natural and considerable that if any changes happened in the price of gold at the global level, we have to see the impact of it on our domestic market.
The worldwide change in Gold price depends on many conditions like economic turmoil, change in demand, political crisis, change in supply, inflation, and so on.
Since many years, investing in gold is considered very safe at all times, especially during the inflation time. During inflation, it becomes very tough to buy something in the market as inflation reduces the purchasing power. Gold prices are seen up and down during inflation and many people get scared to invest in it, however, we should utilize such conditions.
We need to do investment in something which is stable and which can be stable in the future. Many of the market experts and advisors consider and advise to invest in Gold during the inflation time, which causes of price hiking of the gold during inflation, especially you find such Gold rate in Kerala.
• Indian Jewelry Markets
Indian jewelry market, which is having a strong face in the Gold market and it plays a very important role in gold rate in Kerala and all other states. We all know that India is a very big market of jewelry, where we import the high volumes of gold which is used to make for jewelry.
Indian people use 80 to 90 % of imported gold to make jewelry. Demands of Gold in Indian markets depend on the festival seasons and sentiments, which leads to an increase or decrease in Gold rate in Kerala and India. During the festival season, gold prices get hiked, and in non-festive season get down.
• Protection against the volatility
Many people in India want to do some investments in gold to protect themselves and their families to avoid any problems or volatility in the future. Due to this point of view, Indian people buy gold in every festival and other occasions. Especially in marriage time, the bride and groom both sides buy a good amount of gold as occasion and investment purpose.