What this is not
Kavita IyerMarkets data editorThis site measures a premium, but the premium is not an opportunity. An international price is a wholesale quote for metal delivered abroad, not something a reader can buy at, and the measured gap is not a saving anyone can capture. This page says that plainly, and describes the limits of the comparison.
The international price is not a price for you
The international price is a wholesale quote for metal delivered abroad, in large quantities, before duty and tax. It is not a price at which a reader can buy a gram of gold. To buy that gram in India, a reader must pay import duty, landing costs, a domestic premium and tax. The international price is a component, not a price.
A reader who sees the international price and compares it to a shop's price is comparing two different things. The shop's price includes the costs of moving metal into the country, the costs of running a shop, and the tax charged on the purchase. The international price includes none of those.
The premium is not a saving
The premium is the difference between the domestic benchmark and the international price. It is not a saving anyone can capture, because the international price is not something a reader can buy at. To capture the premium, a reader would have to buy gold at the international price, bring it into India without paying duty, and sell it at the domestic benchmark. That is not possible.
The premium is a description of policy and demand. It is the cost of buying gold in India rather than abroad, and it is paid by every buyer. It is not a profit to be made, and it is not a signal to buy or sell.
The premium is not constant
The premium rises and falls with demand, and it changes from week to week. A reading taken on one day may not hold on the next. The premium also changes with the exchange rate, because it is measured as a percentage of a rupee price. A falling rupee can make the premium look smaller without any change in the domestic market.
A reader who sees a premium today should not assume it will be the same tomorrow. The premium is a snapshot, not a forecast. The site's figures are a measurement, not a prediction.
This site is not a shop
This site is not a shop, and it does not sell gold. It is a reference site that measures the premium. The prices shown are benchmarks, not offers. A reader cannot buy at the prices shown, and the site takes no money from the reader. The site links to a trading account with FxPro, but that is a separate service, and the site is not the broker.
The site's purpose is to make the premium visible. It does not recommend buying or selling gold, and it does not promise profit. A reader who wants to buy gold should compare shops, check purity, and ask for the total price. A reader who wants to trade gold should understand the risks of a contract for difference.
What the reader should have in hand before deciding
A reader who wants to act on this information should have the following in hand: the domestic benchmark, the international price, the exchange rate, the premium, and the tax. The table above this text shows all of these. The reader should also have a clear idea of the purpose of the purchase: is it for jewellery, for investment, or for trading?
The answer changes the decision. A jewellery buyer should compare total prices. An investor should consider the costs of storage and the buy-back price. A trader should understand that a contract for difference carries no claim on metal and is settled in the account's currency. This site provides the measurement, not the decision.
The limits of the measurement
The measurement has limits. The domestic benchmark is a reference rate, not a price. The international price is a wholesale quote. The premium is a percentage, and it moves with the exchange rate. The tax is added, but making charges and shop margins are not published and are not estimated here.
The measurement is also not real-time. The association publishes twice on each trading day, and the most recent rate is sometimes a day or two old. The date it carries is shown rather than hidden. The measurement is a careful reading of published figures, but it is not a live price.
Limits in brief
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Questions about the gap
Can I buy gold at the international price?
No. The international price is a wholesale quote for metal delivered abroad, before duty and tax. To buy a gram in India, you must pay import duty, landing costs, a domestic premium and tax. The international price is a component, not a price.
Is the premium a saving I can capture?
No. The premium is a description of policy and demand, not an opportunity. To capture it, you would have to buy at the international price and sell at the domestic benchmark without paying duty, which is not possible.
Is the premium constant?
No. The premium rises and falls with demand, and it changes from week to week. It also changes with the exchange rate. A reading taken on one day may not hold on the next.
Is this site a shop?
No. This site is a reference site that measures the premium. It does not sell gold, and the prices shown are benchmarks, not offers. The site takes no money from the reader.
What should I have in hand before deciding?
You should have the domestic benchmark, the international price, the exchange rate, the premium, and the tax. You should also have a clear idea of the purpose: jewellery, investment, or trading. The decision is yours, and this site provides the measurement, not the decision.
One gram, two prices, one unit
The Indian gold price is the world price, landed, taxed and then marked up by a domestic premium. This site converts both to one gram and prints the difference, before tax and after.