Bangalore has always been a hot spot for gold buyers, sellers and especially people here are known for buying gold jewellery in huge numbers on auspicious occasions and festivals. Therefore, gold rate in Bangalore or bengaluru (new name of the city) is always an important data for people who are in the business of gold trading and investment in the city.
When it comes to get updates about gold rates, it generally refers to current market price offered by retailers and banks for sale of coins, bullions and jewellery. In some countries gold price is also determined on futures contracts which are traded on future exchanges.
One can get hourly updated per gram gold prices for different purity measures such as 22 carat, 24 carat and 916 pure gold in the city, along with that one can get recent gold rates offered by popular jewellery shops in the city.
Bhima Jewellers, Tanishq, Khazana Jewellery stores and several others are the reputed sellers in the city. They supply good quality jewellery, the rates are based on international market, and that is why difference in prices are very less in comparison to other rates offered by other retailers. To understand how future contracts affect the price let’s understand it in detail:
|Date||22 Carat (Per 10 Gms.)||24 Carat (Per 10 Gms.)|
|Today's Price||Rs. 28780/-||Rs. 30780.75/-|
Based on gold import or export lot size and delivery time agreed by the buyer and seller these future contracts are made which is a standard practice followed in future contracts. According to the fixed price decided in the contract, the seller will deliver gold commodity to the buyer in the time period which they had agreed in the future contract. Just like gold other important and expensive commodities such as natural gas, crude oil, iron, copper, zinc and lead are also included in future contracts in some countries which decided their current price.
Based on current market scenario and economic stability, each month there is a future contract available for the commodity sellers and buyers. By each month it means that if the contract is decided for a particular month, it will be available throughout the year. For example if the contract is available for February, it will be available throughout the year.
Logic behind this system is to ensure guaranteed prices and supply of gold for the consumers and it also allows gold producing companies and buyers to establish is a solid system that ensure transparency in the business.
Current spot gold price in Bangalore based on per gram metrics hugely depends on supply and demand numbers. This is where future contracts are an excellent system that can be used to hedge the frequently changing gold rate risk. Almost every country these days use future contracts to significantly reduce the risk associated with spot price fluctuation. The other way to get the exact price updated minute by minute is to use commodity exchange market. Future contracts are traded on commodity exchange market.