Gold prices have increased by almost 20 per cent

Jewellery manufacturers are looking at bringing down the caratage of gold in studded jewellery from 18 carat at present to about 14 carat in order to bring down the prices and pass on the benefit to the customers, according to Mr Bachcharaj Bamalwa, Vice-Chairman, All India Gems and Jewellery Trade Federation.



“Gold prices have increased by almost 20 per cent since the beginning of this fiscal and it is currently ruling at about Rs 17,000 for 10 grams. In order to make jewellery affordable for consumers, we are considering the option of lowering the caratage in diamond and other studded jewellery,” Mr Bamalwa told newspersons on the sidelines of a press conference to announce the East India Jewellery Show (EIJS) here on Wednesday.

The lowering of caratage would bring down prices of studded jewellery by about 16 per cent, he observed.

“We are conducting a pilot study to ascertain the feasibility and market for such jewellery. We will also consider bringing down the caratage of gold to nine if prices rise further (beyond Rs 20,000 for 10 grams),” he added.

Fall in demand There has been a sharp fall in demand for pure gold and studded jewellery because of the high prices, he pointed out. This is reflected in the 75 per cent fall in gold imports by the country during the first ten months of the current fiscal.

“India has imported close to 170 tonnes of gold during the first ten months of the current fiscal, against 390 tonne during the financial year 2008-09.

Going by this trend, we feel the total imports this fiscal might stand at about 200 tonne, a drop of about 49 per cent,” he said.

Though it was difficult to ascertain whether gold prices would increase further, Mr Bamalwa said, “If gold purchase by the central banks across the globe continues the way it is at present and if dollar slides further against other currencies, we can see gold prices rising further.”

The four-day EIJS’s Sonar Sansar exhibition, beginning on November 27, will showcase the latest designs and products for the customers in the eastern region.