The market of pricing gold causes frustration for everyone. Even though gold has no industrial use the gold rate in India continues to rise.
How is this so? Gold is used to produce currency that can be used by for anything. The value of gold changes on a daily basis and has made as well as caused people lots of money.
According to the latest statistics, gold rate in India continues to rise daily. From August to the current date India's gold rate has gone from $1,165 to $1,135. This inflation in the rate of bold is due to the Fed getting involved. Investors would benefit from this because it would cause an economic growth spurt.
If you are, an American investor interested in trading of gold at the rate in India you will need to know how to compute the gold price into India's Rupee. One universal fact is that gold is always quoted in USD per Troy Ounce. India is an importer of gold so the prices in Indian Rupee come from the international prices with London Bullion Market. This causes the final price in Indian Rupee to be higher because it includes VAT, Freight, Sales Commission and other charges.
In order to calculate the international price of gold you can do it the easy way and just use an online calculator. If you want to do it firsthand, it is as follows:
1 Troy Ounce = 31.103477 gram,
Therefore, Price of in USD per 10 Grams
Presuming USD/INR rate of 45, price in INR per 10 Grams
Add Customs Duty @ Rs.200 per 10 Grams
Add VAT Ex Mumbai @ 1%
Price of Gold in INR per 10 grams
These calculations will not be the final price because of the freight charges other charges included. However, with the above figures you can keep up with the current gold rate in India.