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Gold has always been held in high regard in India - be it for weddings festivals or investment purposes. However what most customers don’t realize is that gold prices can differ greatly across cities in India. Although Delhi or Mumbai have been perceived as metros which sell gold at better prices than the smaller cities that’s not always the case! Why is Gold cheaper in Kerala? Recent research reveals that there are a number of cities across South India especially Kerala which have some of the lowest rates of gold in India. Cities like Kochi and Thiruvananthapuram have even earned the nickname of being a gold hub because prices of gold here are lower than the rest of India for the same purity. Reasons being cited are: Volume of business and competition amongst jewellers are higher. Ports are closer by which gold is imported into. Higher competition leads to lesser local markup. Meaning that when you purchase gold in some of these cities in the South you’re essentially paying a lot less for the same product than someone who may buy it up North in Delhi or Chandigarh for example. Reasons Gold price differs from city to city: Although the global gold price does set a base price for 24K gold in India what we pay at retail has a lot of other factors added on to it that differ from city to city. Distance from ports and logistics costs incurred. Varying tax rates and local charges. Higher or lower making charges and profit margins for jewellers This is why gold prices tend to be higher in cities which are inland as they have a longer route to ports which increases the logistics cost. Port cities may actually have slightly lower prices because the goods have already traveled less which reduces the cost at which it’s sold to consumers. Does that mean you should travel across India for less expensive gold? Well.. Although you can technically compare your city’s gold rate to the next and see where you can get the best deals on gold financial advisors suggest taking into consideration travelling expenses additional taxes and making charges that may occur in the city you intend to purchase gold from. Many buyers find the price difference between gold too minimal. Tips to remember before you buy gold: Check if your gold is BIS hallmarked for purity. Understand the different purities such as 24K vs 22K Gold. Know the market value and current local rates along with making charges. Ideas like these ensure that you don’t just get value for your gold in Kerala but wherever in India you choose to buy it from. Whether it be Delhi Mumbai or Kolkata.