Is gold price cheap in Nepal than India?
In South Asia, mainly in India, we can hear rumors like gold is relatively cheaper in Nepal. And it is in fact indisputable. There is a marginally high and low price difference in the price of gold in both neighboring countries.
Let’s see why gold price differs in both countries!
The price fluctuates due to the foreign exchange rate, its weight and its purity.
In Nepal, trade happens primarily in Tola (11.66 grams) whereas, in India, trade happens mainly in grams. This can also fluctuate a little amount of price.
Talking about its quality, in Nepal, customarily 9999 gold is sold which is considered the purest gold.
Do 999 gold contain impurities?
It does contain impurities but by small volume.
Meanwhile, in India, 22k or 24k gold is sold which in terms is considered as low quality in comparison to 9999 gold.
Note: It is calculated that 24k gold is equivalent to 9999 gold.
How gold is measured is a bit confusing. In both countries Nepal and India, they use the different measuring system. This is one of the supreme reason behind the fluctuation of price.
Is there a vast difference in price?
No, there is no vast difference in price. As we have mentioned above, the gold price totally depends upon its foreign exchange rate, weight, and its purity.
The exchange rate between Nepal and India is
1 Nepalese Rs = 1.5 Indian Currency.
This price difference also encounters to fluctuate the price in both countries.
While calculating the tangible value of gold in both countries, you will get a slight cheaper gold in Nepal. The difference may be of 100-200 rupees.
It isn’t that big amount you are thinking.
If you are thinking to invest in gold in Nepal and peddle it in India, you will get a little amount of profit. But the profit you will get will not be of that skyscraper amount.
Illegal buying and selling gold are strictly prohibited in both countries. You might get arrested if you do so illegally.
Any queries related to this post, comment below!