Keralam Gold Jewellery Trade Anticipates Surge in Sales this Onam Season!

The gold market is poised for a significant surge in sales value, as Keralam’s jewellery sector anticipates record sales during the upcoming Onam festival. The Kerala Gold and Silver Merchants Association (KGSMA) has projected that jewellery sales could exceed ₹10,000 crore this year, a notable increase from the previous year’s estimates of ₹7,000–₹8,000 crore. However, with the price of 22-carat gold hovering around ₹14,600 per gram, the actual volume of gold sold by weight may decrease, indicating that elevated price levels are influencing purchasing behavior among consumers.

This anticipated growth stems from several factors, including the overlapping of the Onam festival with wedding seasons, an uptick in the exchange of old gold for new, and increased demand for lightweight jewellery designs among consumers. Additionally, the return of non-resident Indians (NRIs) is likely to infuse vitality into the market. However, the rising gold prices, compounded by increasing operational costs and regulatory hurdles, pose a challenge, particularly for small and medium-sized jewellers. The KGSMA has called for government intervention to support the jewellery sector amidst these pressing issues.

In the short term, traders and investors may experience a complex landscape. While the projected increase in sales value is promising, the likely reduction in the quantity of gold purchased could impact overall market dynamics. Investors should closely monitor evolving consumer trends and price movements, as the dual pressures of high gold prices and economic conditions could shape market strategies. It remains critical for stakeholders to gauge how emerging consumer preferences will affect both price stability and market demand in the coming weeks.

Source: Market Source

(Expert Note: This report was independently prepared by the Wealthova Commodities team.)