The Kerala Gold and Silver Merchants Association (KGSMA) has announced the implementation of a comprehensive 'Vision 2030' action plan aimed at strengthening the State's gold trade sector. According to reports from The Hindu BusinessLine, the association decided to organize 100 study sessions across Kerala to take the initiative forward and create greater awareness among traders and other stakeholders. The plan focuses on making the gold trade sector stronger, more transparent and modern while ensuring the survival of small and medium-sized jewellery businesses.
Recent market data reveals a significant shift in consumer behavior during the festive season, with gold sales declining nearly 15% year-on-year during Ganesha Chaturthi. As reported by Mint, this decline is primarily attributed to domestic 24K gold prices surging nearly 125% over 2-3 years, rising from ₹69,000-₹70,000 to over ₹1,57,000 per 10 grams. According to Vandana Bharti, head of commodities research at SMC Global Securities, this extreme price jump, coupled with 10-25% making charges and 3% GST, has pushed heavy physical jewellery beyond consumer reach. Buyers are now opting for lighter jewellery, coins, and paper gold as traditional heavy necklaces no longer fit family budgets.
The shift toward alternative gold investment options has accelerated significantly, with gold ETF inflows rising 67% month-on-month to ₹2,597 crore in August, taking holdings to 121 tonnes. As reported by Mint, digital gold purchases have more than doubled year-on-year in August, while gold imports fell 58% to $2.3 billion. Akshat Garg from Choice Wealth explains that consumers are now keeping jewellery and investment separate, choosing lighter pieces for cultural purposes while holding investment gold in financial forms. Financial entry barriers favor digital gold and ETFs, where consumers can start investing with just a few hundred rupees without large capital reserves.
According to K.Surendran, start president and S.Abdul Nazar, general secretary of KGSMA, as reported by The Hindu BusinessLine, a rational reduction in import duties along with measures to encourage the recycling of domestic old gold could strengthen legitimate trade and help curb illegal gold trading. The association also demanded the withdrawal of increased UPI and HUID charges and called for stringent action against fake HUID numbers and fraudulent hallmarking. KGSMA plans to intensify awareness campaigns in collaboration with agencies such as the Bureau of Indian Standards (BIS) to ensure greater compliance and consumer awareness.
