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What is 1 Bhori Gold: Understanding Its Weight, Price, and Role in Gold Loans
In India, gold is often associated with wealth, prosperity and auspiciousness. For centuries, this precious metal has been one of the most coveted possessions for people, and things haven’t changed much even in the current scenario. An average Indian household invests a significant part of its savings into gold. However, this investment can be in any form of gold, such as coins, bars or jewellery items.
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When it comes to buying, selling, or pledging gold against money, gram and ounce are the universal units for measuring. However, there are several traditional units, such as bhori, tola, etc., that are commonly used in certain parts of the country.
Here is a detailed explanation of one of these measuring units called bhori, its weight, price calculation and role in gold loans:
What is 1 Bhori gold?
Bhori is one of the traditional units that were used to measure gold in India while buying, selling or pawning it. As the standard metric system gained popularity, people slowly stopped using this term for measuring gold. But there are a few parts of Indian states like Maharashtra, Gujarat, and Rajasthan where this measuring unit is still used very commonly.
While units with an international standard are more common in urban areas, people working in small-scale jewellery shops or markets in rural regions are still familiar with Bhori and its value. Especially when it comes to buying or selling traditional jewellery, bhori is the most commonly used measuring unit in India.
Weight
In India and several other countries that follow these traditional measuring units, 1 Bhori is roughly equivalent to 11.66 grams. While this weight can slightly vary from one place to another, as the weight ranges between 11 and 12 grams, 11.66 grams is the widely accepted value. To calculate the weight of 1 bhori gold in grams, you need to multiply it by 11.66.
Need for the Bhori to Gram Conversion
Gold trading is a complex process that often requires a uniform standard to be followed. Otherwise, it can lead to several discrepancies. In modern transactions, Bhori is converted into grams to ensure transparency in pricing. Since the gram is an internationally recognised unit, this conversion allows gold traders, investors, and buyers to understand gold prices and avoid any confusion. Apart from this, Bhori-to-gram conversion is also required to help buyers and sellers determine the exact weight of their gold assets.
Price Calculation
Usually, gold prices are calculated in grams. If you need to check the price of 1 bhori gold today, you need to check the current gold rate and multiply it by 11.66. For instance, if the current market price of one gram of gold is 5000 INR, the price of 1 Bhori gold will be 58,300 (5000 x 11.66).
Suggested Read:Why is the Gold Rate Increasing in India? Factors Driving the Price Surge
Role in Gold Loans
Just like ancient times, gold loans are still one of the most preferred financing options in India. This is a type of secured loan where people pledge their gold assets against money to take care of a financial emergency. Here is an explanation of the role this traditional measuring unit plays while availing a gold loan:
- Asset Valuation: While the majority of transactions are done with the gram as the standard unit to assess the value of gold that is being pledged, sometimes the bhori is also used. Especially if you’re dealing with a traditional lender or pawnbroker, it is important to have an idea about this measuring unit. Or, if someone is pledging traditional jewellery items which were originally measured in Bhori, this unit will be taken into consideration.
- Loan Amount Calculation: While lending money, a few lenders evaluate the weight of the gold (in bhori or grams) and then use it to determine the Loan-to-Value (LTV) ratio. So knowing its value can help a borrower get an approximate idea about the loan amount.
While gram and ounce are standard units used for determining the weight of a particular gold asset, it is essential to have an idea about traditional units like Bhori. Especially if you’re planning to avail a gold loan, this can make things a lot easier. At Muthoot Finance, we offer quick and hassle-free gold loans at highly competitive interest rates. You can check the gold loan per gram rate and initiate the loan application process online. Or visit your nearest Muthoot Finance branch for more information.
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