Experts have revealed that the southern zone of India turns out to be the largest consumer of gold, with Kerala being the in highest position. The new CEO of the World Gold Council for India, Sachin Jain, said “Kerala is where the heart of gold business lies.” He also mentioned that Kerala’s statistics have contributed immensely to the charts of India, in a press meeting with ‘All Kerala Gold and Silver Merchants Association’.
The experts have mentioned that the first quarter of 2024 was one of the strongest quarters that the industry witnessed with 12,096 tons of gold being consumed globally. Despite the surge in price and drop in jewellery demand, the industry is flourishing with an increased demand in the technology sector. The manufacturing of new micro-processors now uses gold instead of silver, which increased the gold consumption for about 10% in the technology sector.
The Kerala gold industry focuses on purity and 100% hallmarking, thus maintaining the unanimous connection of gold to every household in Kerala. Sachin Jain has assured that the World Gold Council will provide assistance to enhance the prosperity of Kerala’s jewellery industry. He has also mentioned that the use of gold per person is seen to be higher in the state of Kerala.
In India, the consumption of gold for the first quarter was 8.5% higher than the consumption for the same quarter, last year. The CEO says that the investment in bars and coins has increased rapidly and it is the first time the industry is witnessing such a significant increase. Jewellery, bars and coins, central banks and technology have been the major contributors to the industry.
The resource person also shared that the industry has seen many unexpected, yet favourable outcomes. In a global point of view, the projection of consumption for the year 2024 is anywhere between 700-800 tons. The industry expects an increase in gold consumption in the coming years, along with a hike in per capita income. The biggest steps that were seen and supported by the industry were the implementation of GST and hallmarking.
Sachin Jain mentioned that it has been a fundamental change that has happened in the country. He also said that the geopolitical stance which is very fragile right now, has a direct effect on the industry. But with the existing environment, he says that it is a fertile environment for gold prices. Even with the rapidly changing lifestyle the experts have said that the demand for gold will stay the same as they aim to “connect the new-age consumer to gold-emotion.”
