Looking to buy gold? Buy now before it's too late!

Looking at the ever-soaring prices of gold, if you were unable to buy gold for weddings, investments, or any other purpose, Budget 2024 has brought you great news. Finance Minister Nirmala Sitharaman, while presenting the Union Budget for 2024-25, has announced significant cuts in customs duties on gold. As a result, the prices of gold and gold-made jewelry have decreased.

How much impact did the reduction in customs duty have on gold prices? What are the current gold prices? Is this the right time to buy gold at lower prices? If you miss the opportunity to buy gold now, why you might end up regretting it? Let’s find out.

Finance Minister Nirmala Sitharaman has announced a reduction of 6% in customs duty on gold in the budget. The customs duty on gold is reduced by 9%. Previously, there was an overall duty of 15% on gold. Similarly, the customs duty on silver is reduced from 15% to 6%.

According to the India Bullion & Jewellers Association (IBJA), the cut in customs duty amounts to approximately ₹5,900 based on the current price of gold. This means that gold could become cheaper by up to ₹6,000. Similarly, the price of silver could decrease by up to ₹7,600 per kilogram.

What are the current gold prices?

The impact of this budget announcement has already started to show in the market. On the Multi Commodity Exchange (MCX), gold prices have seen significant declines for the third consecutive day. At the start of business on July 25, gold on MCX was trading at a loss of nearly 2%, dropping ₹1,330 to ₹67,617 per 10 grams.

On July 23, the day before the budget, gold had dropped by more than 5%. Gold, which was trading above ₹72,000 earlier, fell to ₹68,000 on Thursday.

Speaking of gold jewelry, according to IBJA, the retail price of 22 KT gold jewelry on July 25 was ₹6,654 per gram, or ₹66,540 per ten grams. Similarly, the price of 20 karat jewelry is ₹6,068 per gram, and 18 karat jewelry is at ₹5,522 per gram.

Looking at the retail prices on July 22, a day before the budget was presented, the price of 22 karat jewelry was ₹7,125 per gram, 20 karat gold jewelry was ₹6,498, and 18 karat gold jewelry was ₹5,913 per gram. These rates do not include GST and making charges.

Is it the right time to buy gold?

Thus, gold prices have already dropped by about ₹5,000 so far, with the possibility of further reductions. Experts in the gold market believe that now is the right time to buy gold. As they fear that gold prices may increase in the coming days. IBJA Secretary Surendra Mehta said in an interview with a TV channel that such a significant cut in customs duty was unexpected. However, there is concern in the market that the GST Council meeting may increase GST on gold from 3% to 12%.

He believes that for those who want to buy gold, this is a good time. It should be noted that the GST Council meeting could take place in August.

For those interested in buying gold for weddings, investments, or any other purpose, it is a beneficial time for gold buying. It’s better to buy gold now before the rates rise again, or you might regret it later.