In a bid to make gold jewellery affordable, branded jewellery makers may now opt for making standard gems studded jewellery using lesser amount of gold with the prices of the yellow metal constantly on a bull run.
Gold prices have appreciated by 20% since March this fiscal and are currently rallying at Rs 17,000 per 10 gram, Pankaj Parekh, chairman, Gem and Jewellery Export Promotion Council, eastern region, said. Bachcharaj Bamalwa, vice chairman, All India Gems and Jewellery Trade Federation, said many branded jewellery makers have already started making diamond studded standard jewellery using 14 carat gold instead of 18 carat.
This has made a price reduction by 16%, whose benefit jewellery makers have been able to pass on to the consumers, Bamalwa said. He said jewellery makers are now considering making standard diamond studded jewels in 9 carat and see whether the market accepts it.
While for jewellery makers buying gold has become a critical affair, Indian exporters as well as exporters worldwide are trying to penetrate into the Indian market, though gold as jewellery buying has come down by more than 70% in India keeping pace with the global trend, Parekh said.
Bamalwa said jewellery purchase in Italy, the second highest consumer of gold after India, has come down 75% and Turkey, the third largest consumer by 94%. But across the world gold as an investment buying has gone up by 20% and official buying by around 15% with most central banks across the world increasing gold stock.
Gold as in investment buying across the world never exceeded 5% of total gold sales until the economic meltdown, Bamalwa added. However, gold imports till October were 170 tonne working out to an average import of 24.3 tonne per month much below the average monthly import of 32.5 tonne in 2008-09. The average monthly import till 2007-08 was 40 tonne, which may again happen if prices go down to a level of Rs 15,000 per 10 gm, Bamalwa said.
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