The jewellers in Kerala, which has a large market for gold, will continue to sell gold coins and bars.
The All-India Gem and Jewellery Trade Federation had recently decided to halt sale of gold bars and coins in view of an anticipated cut in the gold imports following government restrictions. The federation members are expected to stop selling 24-carat gold coins and 22-carat gold bars shortly.
However, Kerala jewellers as of now have no such plans. B. Girirajan, president of the All-Kerala Gold and Silver Merchants Association, told Business Line that they would continue the sales. “Coins and bars make only a fraction of our Kerala jewellers’ business,” he said. “It is less than 10 per cent, so we do not want to halt their sale, though the profit margin is very thin.”
Girirajan, who heads the Bhima Jewellers group, said gold jewellers in Kerala bought gold to be worn as jewellery, and not for investment. As a result, the demand for gold coins and bars is very low. He noted that when the gold prices had gone down, the demand for jewellery spiked, and not for coins or bars.
He pointed out that the monsoon season was a lean period for jewellers as hardly any wedding took place during this period.