Winning Bizness Desk
Mumbai.Gold and silver prices saw a sharp fall on November 14, reversing their recent upward trend. According to the India Bullion and Jewellers Association (IBJA), the price of 10 grams of gold dropped by ₹1,760 to reach ₹1,24,794. A day earlier, the same quantity was priced at ₹1,26,554. Silver also registered a major decline of ₹3,363 per kilogram, slipping to ₹1,59,367 from the previous day’s rate of ₹1,62,730. This fall comes a month after gold touched ₹1,30,874 on October 17 and silver hit an all-time high of ₹1,78,100 on October 14.
Gold and silver turn costlier this year
Despite the latest dip, both metals have become significantly more expensive this year. Since December 31, 2024, the price of 10 grams of 24-carat gold has risen by ₹48,632, moving up from ₹76,162 to ₹1,24,794. Silver too has seen a steep rise of ₹73,350 per kilogram. At the end of last year, one kilogram of silver cost ₹86,017, which has now reached ₹1,59,367. This steady rise reflects strong investor demand and fluctuating global trends.
Reasons behind price differences across cities
Gold prices vary from one city to another due to several factors. Transportation costs play a key role, as gold is a physical commodity that must be shipped securely, often via air. Fuel, security, vehicles and manpower add to the cost. Demand also differs across regions. South India accounts for around 40 percent of the country’s total gold consumption, and sellers there purchase in bulk, which helps them offer lower rates. In contrast, tier-2 cities often see higher prices. Local jewellery associations in many states also decide daily rates, influencing the price consumers pay. The purchase cost of stock further affects retail pricing. Jewellers who bought gold at lower rates can afford to sell it at more competitive prices.
Local associations influence gold pricing
In several states, gold rates are not solely determined by national bodies but also by local jewellery associations. For example, in Tamil Nadu, pricing is decided by the Jewellers and Diamond Traders Association. Similar bodies operate across India, creating slight variations in rates between cities. These associations consider local demand, availability and market conditions before fixing prices.
Gold buying should be backed by certification
Consumers are advised to purchase only certified gold. BIS-hallmarked gold ensures purity and carries an alphanumeric code such as AZ4524. This marking confirms the karat level of the metal and protects buyers from fraud. Certified gold also helps maintain standardisation in the market, especially when prices fluctuate frequently.
Cross-check rates before making purchase
Before buying gold, buyers should verify both the day’s price and the exact weight from multiple credible sources, including the IBJA website. Gold rates differ for 24-carat, 22-carat and 18-carat purity levels. Cross-checking ensures transparency and prevents overcharging, especially when city-wise variations or association-driven pricing may affect final costs.
Summary Pointers:
Gold fell by ₹1,760 on November 14 to settle at ₹1,24,794 per 10 grams.
Silver dropped ₹3,363 per kilogram, reaching ₹1,59,367.
Gold touched ₹1,30,874 and silver ₹1,78,100 at their October highs.
Gold has become costlier by ₹48,632 since December 2024.
Silver has gained ₹73,350 per kilogram during the same period.
City-wise price differences arise from transport, demand, associations and purchase cost.
Buyers should check BIS hallmarking and verify prices before purchasing.
