Did you purchase gold during Diwali or Dhanteras? Wondering how much your gold investment is worth today and how much profit you have earned? Our Gold Return Calculator helps you find out in seconds!
Whether you bought gold coins, bars or jewellery during Diwali or Dhanteras, simply enter your purchase details and today’s gold price to calculate your returns. You can also include making charges and 3% GST to get a more realistic estimate of your overall investment cost.
Gold Return Calculator
The calculator displays the following details:
- Total Investment Cost: Your original gold purchase value, including applicable GST and making charges.
- Gold Value Today: The current estimated market value of your purchased gold.
- Total Profit or Loss: How much you have gained or lost since buying gold.
- Absolute Return: Your total percentage return on the investment.
- Annualised Return (CAGR): Your average yearly investment return based on the holding period.
- Gold Price Growth (CAGR): The annualised growth in gold prices during your investment period.
- Making Charges and GST: The additional purchase expenses that can affect your actual returns.
How to Use Gold Return Calculator
Fill in the weight of gold in grams, rate per gram at which it was purchased, the rate per gram now and number of years you have kept it. Is it jewellery? Get hold of the making charge from your bill and enter it in the “Making charges paid”. Purchased it before GST was implemented? Mark the GST flag as No.
Now your actual profit post all charges will be calculated along with your annual rate of return (CAGR), alongside your profit from appreciation of the gold itself. The difference in the two rates is the actual amount of loss you incurred due to the various charges.
If you have bought 10 grams at ₹8,000 per gram including 3% GST, and 10% making charges your total cost would have been ₹88,000. If you sold it at ₹14,350 per gram, then its value would be ₹1,43,500 and your profit would be ₹55,000 or 17.70% per year for three years. For the same gold if it had been jewellery with 15% making charges, then it would have cost you ₹92,000.
How the return is worked out
Cost = grams × buy price × (1 + making %) × (1 + 3% GST)
CAGR = (value today ÷ cost)1 ÷ years – 1
In case you sell your gold, the jeweller pays you only for the metal, based on the buying rate of the particular day, which will include neither making cost nor GST. Thus, when you invest in precious metals like jewellery, always keep in mind that the return you can make will always be behind gold prices.
How to Get Gold Price?
The gold prices vary every day and not only that but also vary according to different cities and purity of gold. The 24K(999) gold is called pure gold. The 22K(916) gold is the one used for the majority of the jewelry, and its price is about 8% lower than pure gold on per gram basis.
Use today’s rate for the same purity you bought. You can get rate from your jweller or you can use reputed website IBJA to get current rate of gold.
How Making Charges and GST Affect Gold Returns?
While purchasing gold, the actual cost of investment is higher than the price of the gold due to various reasons like making charges and GST. These are especially important while purchasing gold jewellery during Diwali or Dhanteras.
Making Charges: The jewellers make charging for designing and manufacturing of the gold jewellery. These making charges are calculated either in terms of percentage of gold price or as a fixed amount per gram. Based on the design and jeweller, making charges may vary from 8% to 25% or more.
GST on Gold: The GST charged on gold jewellery in India is typically 3% on the price of gold jewellery inclusive of making charges when supplied as a composite jewellery.
Is Gold a Good Investment During Diwali and Dhanteras?
Gold investment during Diwali and Dhanteras is a common practice in India. There are some who regard it as an auspicious investment during Diwali and Dhanteras, and there are those who invest in gold for long-term purposes.
Gold is a good investment, especially when it comes to diversifying investments and protecting your wealth. Nevertheless, the profitability of gold investments depends on the cost of purchase and other factors.
Conclusion
Gold has always been a traditional component of Indian families during Diwali and Dhanteras celebrations. Apart from that, gold can be an important element of wealth management strategy in case of long-term wealth conservation and portfolio diversification.
Nevertheless, knowledge of today’s gold price is not sufficient for calculation of your gold gains. Along with the current gold rate, you need to take into account your original purchase price, amount of gold, making charge and GST.
With our Gold Return Calculator you will easily calculate the current value of your gold. No matter whether you bought gold jewelry, coins or bars during last Dhanteras or some years ago, input your purchase data along with today’s gold price and know your current gold value, overall gain or loss, absolute return and CAGR.
Therefore, if you bought gold this Diwali or Dhanteras, now it is time to know your gains! Use our Free Gold Return Calculator and find out the real returns of your gold purchase.
