Commodity Online
KOCHI: Recession? Forget the word recession when it comes to the sale of gold in the southern India state of Kerala. Gold continues to be the most traded commodity in Kerala.
Kerala accounts for 20 per cent of India’s gold consumption annually. According to the Kerala Jewellery Manufacturers Association, the state is these days turning out to be one of the hottest destinations in the country for retail jewellery trade thanks to the ever-increasing demand and overall economic growth.
”Jewellery retailers from Mumbai, Gujarat, Jaipur and various other places are flocking to Kerala to tap the lucrative market here,” says Association Chief Patron, P V Jose.
Jose says besides gold jewellery, outsiders are attracted to Kerala thanks to the huge demand for unconventional ornaments such as ‘kundan’, ‘filigree’ and stone set jewellery.
Major players apart, small and medium scale retailers had sprung up all over the state, he said. The big business establishments in gold jewellery are already reaping the benefits of retail trade by way of huge increase in business, he added.
Some unique facts on gold business in Kerala:
**Kerala has the largest number of gold jewelers in India.
**About 500 kgs of gold jewellery is manufactured in Kerala, and a third of this is sold to sellers outside the state.
**There are more than 5000 gold and gold jewellery retailers in Kerala in addition to nearly 40000 artisans engaged in the industry.
**Thrissur continues to be one of the hubs of jewellery manufacturing in South India and it accounts for 3000 large and medium sized manufactures.
**Gold jewellery industry employes around 2 lakh people directly and indirectly.
Some 150 top retailers and wholesalers participated in the Kerala Gem and Jewellery Show 2008 that organized from Novemeber 14-16 in Kochi.
Accordingn to P T Cherian, president of the All Kerala Gold and Silver Merchants’ Association, gold is the commodity around which Kearla moves. The show is being organized in association with the World Gold Council.
Buying ornaments and investing in gold is part of the culture of Keralites for generations. In the olden times the royal families in the state used to be fond of gold ornaments.
Arrens Gold Souk International Ltd, a real estate developer, is setting up a shopping mall in Kochi in 2.5 acres of land in prime location where one of the focus areas will be gold ornament showrooms.
In tune with the changing tastes of the younger generation, jewellers are also innovating with newer lightweight designs. White gold is also a favourite of the upper income consumers. The traditional jewellery is still in demand for wedding purposes.In Kochi, customers seem to prefer chic western designs in ‘yellow’ (gold and copper), ‘white’ (gold and nickel) and ‘pink’ (gold with Rhodium polish) gold. In Thiruvananthapuram, however, conventional jewellery with a contemporary twist reigns supreme.
Families invest in gold mainly for wedding purposes. But it also comes handy when in need of a loan. Banks are now eager to provide gold loans which are less risky than other types of retail loans. The booming yellow metal market also gave a golden opportunity for several banks to cash in on. Even private banks such as ICICI and Federal Bank could sell of their entire consignments of gold coins within a short period of time.
Kochi is slowly emerging as the gold capital of Kerala. Bhima, Alapatt, Josco, A Geeripai, Keertilal, Tanishq and Kalyan have already covered the city with the yellow metal. The construction work of Gold Souk is in full swing. Major jewellers from outside Kerala are also expected to invade this growing market.
Kozhikode and Kannur are also attractive destinations for gold traders.
