Factors Affecting Gold Price
Price of 24 karat gold are determined by various factors such as season, world market, inflation, demand and supply etc. Price of gold coins https://goldprice.com are generally higher because of the high inflation. There are many factors that influence the price of 24 karats gold in India, and before we discuss about it, let us clarify the difference between «value» and «price» of gold coin. The price is the amount of money you pay when you buy a coin. On the other hand, value is the money you get when you sell it.
Seasonality: Prices of gold coins depend on the season. Usually, they are high during November — December and during the spring season. During festivals such as Diwali, Akshaya Tritiya, Ramzan etc., most of the jewelry stores offer sales and discounts. It is the best time to invest in gold as you get high discounts on the price tag.
Bad Economic Climate: Economic crisis will increase the price of gold, while a stabilized situation could steady the price of gold as well. The cost of gold is greatly influenced by other market factors also.
Demand and Supply: With its huge tradition and culture of buying and saving gold, India is responsible for 27% of the demand for gold in the world. Countries such as Brazil and China are entering into the gold market. As the demand for this precious metal increases, its price also increases proportionately.
Inflation: In India price of gold coins are greatly swayed by inflation. Gold is thought to be an inflation hedge. So, when inflation increases more and more, people try to lock their money in gold. This demand for gold in turn increases its price. If the inflation decreases, gold prices will reduce proportionately.
Collector’s Coin: If you are into buying mint or bullion coins, then other factors like demand and supply influence its price. The rarer the coin, the higher will be its price tag. If a particular vintage coin is in demand, then its rate will be pretty high. Another factor that influences the price of collector’s coins is the supply maintained by the dealer. If the dealer has more coins, then he would sell them for less, while a limited supply could increase the price. Another feature that influences the price is the grade or condition of the coin. Uncirculated coins in mint condition are very rare, therefore costlier than coins in circulation.
Before you buy gold coins, checkout the price of the day. There are numerous gold saving schemes that let you to lock your purchase for a particular amount. You can also browse e-stores to pick gold coins in a variety of styles and designs.