Chennai gold rate is being determined by many important factors like demand and supply, inflation, world market and seasons. The cost of gold coins remains higher due to inflation. There are many factors that affect the cost of 24 karat gold in India. Before we talk about it we will have to clear the difference between price and value of gold coin. Value of gold is the money that you get while selling it to another person. On the other hand the price of gold is the amount of money that is paid by you at the time of purchasing it. Let us study some important factors mentioned above that affect Chennai gold rate:
1) Coin collections: If you are having a hobby of collecting and buying gold bullion coins then the factors of supply and demand will definitely affect its price. If gold coins are rare then Chennai gold rate will be high. If any kind of vintage gold coin is in a very high demand then its rate will also be very high. Other factors that affect the price of collector coins are its supply done by the gold coin manufacturer.
2) Inflation: Chennai gold rate is very much influenced by inflation. Gold is considered to be always at the hedge of inflation. It is for this reason that when inflation goes up, people do their best to accumulate money in the form of gold. This sudden demand for sufficient supply of gold in turn enhances its price. If the inflation comes down then the prices of gold will be reduced.
3) Economic crisis: This kind of crisis is responsible for enhancement in the price of gold. A stabilized condition can make Chennai gold rate steady one. Some other market factors also influence the price of gold.
4) Influence of seasons: Chennai gold rate also depends on the market season. These rates are generally high during the months of November and December. They also meet a hike at the time of spring season.
5) Supply and demand: With its big culture and tradition Chennai gold rate is credited with saving of money for its purchase.