Gold Price in Canada vs. India: Is There a Difference?

The price of gold products in Canada vs India will vary based on what you’re buying (bars, coins, jewelry), the purity of the gold as well as where the gold is mined.

Gold products globally are priced based on the gold spot price for one ounce in USD.

Gold dealers in Canada and India generally use the same starting point in pricing their gold.

The spot price fluctuates throughout the day.

The spot price of one Gold ounce in USD is $2328.47 as of 2024-05-30 16:28:00

In India, there is a gold price available on the MCX (Multi Commodity Exchange of India), however this price of gold is derived from the global price, they do not set a separate price for gold.

The IBJA (India Bullion and Jewellers Association Ltd.) also publishes an opening and closing rate each day which may be referred to by some and is mainly used by the Reserve Bank of India.

Its important to note that in 2021, Canadian mines produced 223 tonnes of gold while in 2020, Indian mines only produced 1.6 tonnes of gold.

This is important to note as it means India imports majority of its gold and with that comes import duties and taxes.

As of July 1, 2022, an end customer in India will pay 3% GST on their gold purchases, however that’s after 15% of import duties have been paid to import the gold.

In Canada, gold bars, ingots, coins or wafers with a purity level of at least 99.5% are exempt from GST/HST sales taxes as well as from any import taxes.

Purchasing Gold Bullion and Coins

Majority of gold dealers that are offering pure gold bars and coins will adjust their price in real-time in tandem with the spot price of gold.

For online retailers, this is simple as they have a digital feed of the spot price of gold, to which they add a premium (a markup).

Pure gold bullion and coins will most likely cost less in Canada as there is no sales tax and you skip the 15% import duty paid in India.

Purchasing Gold Jewelry

Pricing of gold jewelry can be done a little differently depending on purity.

For 24K jewelry, dealers will often follow the above method with prices changing on an ongoing basis based on the spot price of gold.

Jewelry overall tends to me more expensive due to the higher manufacturing costs.

When it comes to jewelry that’s less pure, 14K for example, dealers can offer these pieces at fixed prices since the actual gold content is only 50% of the piece.

The gold content is also a smaller portion of the overall cost, which will largely consist of the cost to manufacture the jewelry.

Manufacturing will be cheaper in India vs Canada, so when it comes to gold jewelry, its possible that you can find cheaper pieces in India even after import duties are paid, especially the most intricate pieces of jewelry.

What Influences Gold Prices Globally?

While supply and demand is the basis of the price of physical gold globally, there are various factors that can impact either supply or demand.

The price of gold tends to rise when there is economic uncertainty or the potential for volatility in other investment classes like equities.

Some specific factors that can impact the spot price of gold include:

  • Economic factors
  • Geopolitical tension
  • Investor sentiment
  • Interest rates
  • Currency values
Gold 1 ounce bars on table

Frequently Asked Questions

  • Is There a Difference Between the Quality of Gold in India vs Canada?
  • How Often Are Gold Prices in Canada Updated?
Baggio Ma

Baggio has been investing for nearly a decade, using the perspectives gained from his work experience in the private, public, and non-profit sectors to shape his investment outlook. He has a specific interest in the potential of emerging disruptive technologies and their impact on the future.