Gold always has a special place in Indian households; it’s not just an investment option, it also has traditional and cultural value. And one day you went to purchase Gold at a local jewellery shop, and the shopkeeper asked How many Kasu do you want? Now, you get a little confused, as you have heard that gold is always purchased in grams.
In today’s blog post, we will give you an overview of Kasu gold, along with the key benefits of investing in it and the method to calculate it.
What is Kasu Gold?
Kasu refers to the unit of measurement used generally by the people of South India. And the term Kasu originates from a Tamil word, which often means coin. Kasu is a standard unit of gold that is used by South Indian gold traders, local jewellers, and gold merchants. In modern usage, 1 Kasu is generally considered equivalent to approximately 0.4 grams of gold, making it a practical reference for small gold measurements.
Price of 1 Kasu (22K Gold) = ₹5,660
Price of 1 Kasu (24K Gold) = ₹6,177
Features of Kasu Gold
The key features of Kasu Gold are as follows:
- Convenience: Kasu Gold offers investors the opportunity to buy gold online in small quantities. This allows gold investing to be accessible for investors with limited capital.
- Liquidity: As an investment in Kasu Gold offers high liquidity, therefore, an investor can easily buy and sell it with a few clicks.
- No Storage Hassle: The storage of Kasu Gold is typically handled by the custodians. Hence, investors do need to worry about storage hassle.
- Purity: Purchasing Kasu Gold ensures that the gold purchased by the investor has 24K purity.
How to Calculate 1 Kasu Gold in Grams?
The calculation of 1 Kasu Gold in Grams is mentioned below:
1 Kasu = 0.4 grams of Gold.
So, if you want to calculate the total weight of Gold in grams, the formula to calculate is mentioned below:
Number of Kasu * 0.4
For example:
10 Kasu = 10 * 0.4 = 4 grams
50 Kasu = 50 * 0.4 = 20 grams
Price of 1 Kasu Gold
Advantages of Investing in Kasu Gold
The key advantages of investing in Kasu Gold are as follows:
- Portfolio Diversification: Adding Kasu gold in your portfolio protects it from volatility. In case of an equity market downturn, gold will provide stability in your portfolio.
- Hedge Against Inflation: Investment in Kasu gold protects your wealth from inflation, as due to inflation, purchasing power will fall, gold tends to maintain its value and act as a hedge against inflation.
- Flexible Investment Option: As investment in gold requires a large amount, Kasu Gold allows you to start your investment with a small amount.
- Digital Storage: Kasu gold can be held in digital form, eliminating the risk of storage or theft. Providing an investor with the flexibility to hold it freely.
Risks of Investing in Kasu Gold
The key risks of investing in Kasu Gold are as follows:
- Lack of Regular Income: Investment in stocks and bonds provides regular dividends and interest income, while, on the other hand, gold does not offer any regular income.
- Currency Movement: India is an importer of Gold and its prices are also influenced by the global rates. And in case the value of the rupee depreciates against the USD, it can make the gold expensive.
- Opportunity Cost: When an investor invests money in Kasu Gold, they might miss out on other opportunities that could earn higher returns, such as equity.
- Making Charges: If the Kasu gold is not purchased in digital form, and it is purchased in the form of jewellery, it involves certain charges, such as making charges, GST, etc.
Who should invest in KASU Gold?
Investment in Kasu gold is suitable for a certain kind of investor which are mentioned below:
- Traditional Investor: Investors who prefer to invest in traditional investment options, such as Gold can consider investing in Kasu Gold.
- Portfolio Diversification: Those investors who have already invested in equity, debt, etc. and are looking for options for portfolio diversification can opt for Kasu Gold as an investment option.
- Emotional Investors: Most of the investors do not want purely financial assets, they also want something they can use to invest in Kasu Gold.
Conclusion
On a concluding note, Kasu is a traditional unit of gold often used by the people of South India as a measure of Gold. Kasu is generally measured in grams, which makes it easy to buy and track. This bridges the gap between the traditional unit of measurement and standard units such as grams. Investment in Kasu is not about the culture; it also offers simplicity, flexibility, and accessibility. Invest in government-backed options like Gold Funds & ETFs – simple, secure, and seamless with Pocketful. However, before making any investment in Kasu Gold, one must consult their investment advisor.
Frequently Asked Questions (FAQs)
How many grams are in 1 Kasu Gold?
1 Kasu Gold generally have 0.4 to 0.5 grams of gold. But the exact weight depends on the type of jewellery and its design.
Is Kasu Gold a coin or it is a unit of measurement?
Earlier, Kasu Gold was often used as a Gold coin; however, over time, it was used as a unit of measurement in Southern regions.
How to check the purity of Kasu Gold?
The purity of Kasu Gold is often measured through the BIS hallmark stamp. This reflects the purity of Kasu Gold.
Is Kasu Gold jewellery cheaper than regular Gold jewellery?
No, both Kasu Gold and regular Gold jewellery are equal in price depending upon their purity. However, the different making charges charged by the sellers can impact the price.
How is the weight of Kasu Gold calculated in grams?
The weight of Kasu Gold is calculated by multiplying the weight of one Kasu by the number of Kasu units. For example, if you have 5 Kasu and the weight of one Kasu is generally 0.4 grams, then you have 4 grams of Gold.
