DEMAND FOR GOLD JEWELLERY

 

Hardly 5% of the demand for gold for fabrication in jewellery in India is for exports. The balance 95% is for domestic sale of gold jewellery. Many socio-economic factors are responsible for the insatiable demand for gold jewellery in India.

 

Gold jewellery is an important item of personal and family wealth in India, which is bequeathed and passed on to sons and daughters. Every marriage, out of an estimated 5 to 6 million marriages every year in India, involves the gift of a minimum of 30 to 50 gms of gold jewellery. There are other occasions such as the birth of a child, name-giving ceremony, etc., when gold jewellery is gifted.

 

Gold and gold jewellery are also regarded as an investment to fall back upon during financial crises. Gold and gold jewellery can be easily converted into cash, either through sale or through pledging for taking loans. Saving and investing in gold and gold jewellery can be done in fragments and piece-meal, in contrast to real estate properties. This convenience suits small savers and investors in urban and rural areas.

 

The prosperity of the rural rich gets converted into investments in gold and gold jewellery. Therefore, India is one of the biggest markets for gold jewellery. The vast and growing domestic market for gold jewellery provides the base for expanding export production. This base consists of 25,000 licensed gold dealers and 450,000 certified gold smiths spread in over 600,000 villages of this sub-continent. They have imbibed in them centuries old traditions in jewellery making that can provide millions of design ideas for a resurgent Indian gold jewellery exporting industry.

 

India has tremendous potential, not yet exploited, for jewellery exports. The leading gems and jewellery exporters believe that what has been achieved in diamond exports can be achieved in jewellery exports too. India has many natural advantages to accomplish this. India has, at present, perhaps the largest artisan force for making jewellery in the world, about 25,000 licensed gold dealers and 450,000 certified goldsmiths spread throughout the country. Practically, every village boasts of a family of goldsmiths, having a very long tradition of jewellery making.

 

 

ACKNOWLEDGEMENTS:

FINANCEMAN ASSOCIATES acknowledges the use of various printed and electronic media for compiling the content, ideas and statistics on the gems and jewellery industry presented on this web page. We at FINANCEMAN ASSOCIATES are thankful to the industry leaders, their spokesmen, commentators in the media and experts in diamonds processing and jewellery manufacture and, specifically the Gem & Jewellery Export Promotion Council, Mumbai, for the use of published text and statistics that are in the public domain. The place of jurisdiction concerning all issues presented on this Web Page by FINANCEMAN ASSOCIATES shall be Mumbai, Maharashtra, India.

Copy Right 2007 FINANCEMAN ASSOCIATES

 

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