Page 32 - Bullion World Volume 02 Issue 08 August 2022

Bullion World | Volume 2 | Issue 08 | August 2022

Mr Ba Ramesh, President, Mr Surendra Mehta: How is the demand for silver
Madurai Jewellers Association: jewellery? Does silver jewellery compete with gold
I can tell why it is successful in jewellery?
South India. After covid, people
are investing about 15 to 20% of Mr Ba Ramesh: Silver jewellery demand has increased
their earnings in gold. Covid has very much in recent times. It is a different segment
proved the utility of gold compared compared to the gold jewellery segment. Silver
to other assets such as cars, jewellery demand does not affect demand for gold
mobile phones, etc. Second, common people in South jewellery.
India are not that aware of equity, mutual funds and Mr Surendra Mehta: Jayanti bhai, what should
so on. About 95% of the gold purchase is in the form North learn from south India’s success?
of jewellery. Making a charge of 10% is affordable, as
with time, gold appreciates. Last, in South India, we sell Mr Jayantilal J Challani: Quality of jewellery should
22 kt jewellery of assured purity. improve in North India. For example, in North India,
silver jewellery with 30 – 40% silver content is still sold.
Mr Surendra Mehta: Chetan bhai, share with us In south India, the standard is a minimum of 87.5%
something about the South Indian diamond market. silver for silver jewellery. In diamond jewellery, south
India will not buy if you sell diamonds at 15,000 to
Mr Chetan Mehta, Vice- 20,000/carat.
President, IBJA: After gold, the Mr Surendra Mehta: Srinivasan ji, what should
best quality diamond is sold in North India jewellers do?
Southern India. After covid, even
with the increase in the price Mr Chanda Sreenivas: Transparency is important. In
of diamonds by 10 to 15%, the the South, the number of occasions for the purchase
demand for diamonds has grown of jewellery is very high. Promotion is also high in the
by over 80%. Diamonds are South.
associated with prosperity. We see a great future for
quality diamond jewellery in Southern India. In terms Mr Ba Ramesh: in Tamil Nadu, there is a custom of
of demand for higher caratage diamonds, the south is giving 4 to 5 kgs of gold jewellery to the bride and
ahead of north India. groom at the time of marriage. In Kerala, new jewellery
is bought for all close relatives also, in addition to the
Mr Surendra Mehta: So, one thing that comes out bride and groom.
clearly is the South Indian jewellery market is
quality conscious. Chanda Srinivasan ji, why is the Mr Sabarinath B: In the North, the buyback rate is also
demand for gold jewellery less in Hyderabad? very low compared to the selling rate. In the South, it is
usually weight for weight in any exchange programme.

Mr Chanda Srinivas, President,
IBJA- Telangana: Silver is picking Additional comments from Delegates:
Mr A S Sriram, President, Tamil Nadu Jewellers
up very much in Telangana. Gold Federation: In South India, the bottom pyramid is very
jewellery demand is more in large. Each one is buying a small quantity. In North
Andhra compared to Telangana. India, the top end of the pyramid buys more gold.
In terms of investment, gold, However, the bottom pyramid may not be buying. So,
silver, land and shares are the with overall economic growth in the North, there is a
preference of common people. scope for growing the market.
Compared to Tamil Nadu, the demand for plain gold
jewellery in Telangana is less. However, there are new Mr James Jose, President, Hallmarking Federation
stores coming up in Telangana for gold jewellery, silver of India: Every year, Kerala buys about 100 -120 tons
jewellery and diamond jewellery. Telangana is more of of gold jewellery and recycles another 80 tons of gold.
a studded jewellery market. I have been a refiner for 27 years. About 15 years ago,
the average purity of gold jewellery in Kerala used to
Mr Chetan Mehta: Would like to add to Srinivasan ji be 82%. These days, the average purity of old gold
point. Telangana is the place for the largest diamond jewellery coming to refineries from Kerala and Tamil
sale. Nadu is about 90%. It is about 75% of gold jewellery
scrap coming from Bangalore and upwards even now.

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