How is gold rate in Mumbai determined
The gold rate in Mumbai is usually decided by jewellers Associations in the city, primarily by the Indian Bullion and Jewellers Association (IBJA).
IBJA arrives at the daily gold price based on international trends and by including gold import duty.
The IBJA is almost 100 years old and publishes daily gold rates, twice a day - once in the morning and once in the evening - for gold of 999, 995 and 916 purity. These are the gold rates that even the Indian government follows to arrive at the price of the Sovereign Gold Bonds that they issue.
GST at 3% is then added to the calculation (an additional 5% GST has to be paid on making charges).
Additional costs incurred like transportation charges, the cost of security (guards) needed during this transportation and the cost of insurance are also then totted up.
Jewellers, who make up the Association, based on demand and the leeway they have, decide whether or not to give a discount on this rate. If demand is high, discounts go out of the window. But when demand is poor and when the gold in their books has piled up, they announce a discount that they feel will lure buyers and avoid impacting their bottomline.
Jewellers have making charges, wastage charges and other ways in to make up for the shortfall, if any. (Read: A checklist for every gold buyer!)
Some prominent gold jewellery chains though decide to go with their own rates.
Mumbai's gold jewellery market
With the arrival of this new GST regime, Mumbai has now seized back the crown of India's bullion trade hub from Ahmedabad.
More than 60% - some say even 70% - of India's gold trade reportedly originates in the over 150-year-old Zaveri Bazaar that boasts of 7000-plus gold shops. Zaveri means jewellers and bazaar means market. It is located just behind Mumbai's famed and almost always busy Chhatrapati Shivaji Terminus station, formerly known as Victoria Terminus.
Some of these jewellery outlets are over 200 years old. About 2 lakh artisans manufacture the jewellery most of India wears here.
Zaveri Bazaar quaintly has its own version of a BIS hallmarking centre - the Dharam Kaanta.
Established a little over 70-80 years ago, it is an old-fashioned shop where you can find a goldsmith on his elevated seat surrounded by his staff, who cross-check the purity of jewellery a gold buyer has purchased for a fee of Rs 150-200.
Big buying occasions like Dhanteras and Akshay Tritiya are when the Dharam Kaanta overflows with customers keen on being reassured that their gold is good.
So common is gold in Zaveri bazaar that they have a special tribe of people - the Ghamelawallahs, the Bazaar's own gold diggers, who search for gold in the gutters and walk away with more than a few grams of it on their lucky days.
Popular gold jewellery ornaments in Mumbai
According to a recent survey by the World Gold Council, bangles and chains are the most sought after gold jewellery ornaments in Mumbai and contribute between 30%-40% of the demand.
Necklaces contribute between 15-20% and rings - ear rings and finger rings - between 5-15%.
Unlike in big south Indian centres, gold buyers in Mumbai are interested not just in 22k gold jewellery. They buy 18k and 14k gold too.
Biggest driver of gold jewellery demand in Mumbai
The biggest driver of gold jewellery demand in Mumbai remains bridal jewellery (50-55%).
Daily wear jewellery accounts for another 35%-40% of demand and fashion jewellery for 5-10% of gold demand.
The gold jewellery Mumbai's brides wear
If we were to go by a recent World Gold Council survey, the tode and patli are the gold bangles that are considered essential by Maharashtrian brides.
Among earrings it is the jhumke that occupies pride of place.
The chain of preference for Mumbai brides is an essential - the mangalsutra.
Among smaller necklaces, the tushi is popular, while among larger sets it is the chapla haar and laxmi haar.
Other key jewellery components include the aangathi, haath pan, nath and baju band.
Interestingly, a Maharashtrian bride wears an average of 250 grams of gold at her wedding.
When does Mumbai buy its gold
The wedding season, and festivals - Diwali/Dhanteras, Akshaya Tritiya and Dusshera - are the big gold-buying occasions in Mumbai.
Other popular occasions for buying gold are birthdays and anniversaries and gifting occasions.
More details in this World Gold Council-Malabar Gold heatmap shared here:
Hall-marking centres in Mumbai
Only 30% of the gold sold in India is hallmarked! As experts have said there are shocking differences in purity and the average under-caratage is anywhere from 10-15%! So, like we stressed earlier ensure the gold you buy in Mumbai is hallmarked.
In case you didn't know, Maharashtra has the most number of gold hallmarking centres in India - 87. 42 of these hallmarking centres are in Mumbai.
BIS hallmarked gold jewellery showrooms in Mumbai
These include famous names like Tribhovandas Bhimji Zaveri, which was established in 1864, and S Zaveri & Sons, established in the year of India's independence - 1947. Waman Hari Pethe Sons, PN Gadgil Jewellers, Gitanjali Jewels (primarily into diamond jewellery, but with a large collection of gold jewellery too), Popley Gold Plaza and Notandas Jewellers are other famous local names.
Want to double-check your BIS-hallmarked gold in Mumbai?
You can get your hallmarked jewellery tested at any of the 42 BIS recognised Assaying and Hallmarking Centres in Mumbai. This testing will be done on priority but does involve your paying for the process. The Assaying and Hallmarking centre will then have to issue an Assay Report.
In case your jewel is found to be of lesser purity than what the BIS hallmark had promised, the testing charges paid by you will have to refunded by the hallmarking centre that had originally hallmarked the jewellery. The jeweller also will be forced to offer you a like-for-like replacement lives up to the hallmark, beside paying the due fine.
Top gold jewellery showrooms in Mumbai
Here are some of the more prominent gold jewellery showrooms in Mumbai.
Tribhovandas Bhimji Zaveri
Tribhovandas Bhimji Zaveri is named after its founder who established the first store Mumbai's famed Zaveri bazaar in 1864.
They claim to have been the first gold jewellery outlet to offer their customers a full value gold buy-back scheme.
It was also the gold outlet which was raided by a conman, posing as faking Research & Analysis Wing (RAW) officer, along with 28 candidates he had recruited the previous day, in 1987. The mysterious Mon Singh walked away with a loot valued at Rs 35 lakh then. It still remains one of Mumbai's most sensational crimes.
The movie Special 26 starring Akshay Kumar was based on this sensational gold heist at Tribhovandas Bhimji Zaveri.
The storied jeweller recovered from the blow and has now spread its reach to 21 cities across India, including in Kochi, down south. But Mumbai and Zaveri bazaar remain their nerve centre still.
Waman Hari Pethe Sons
Waman Hari Pethe was started by two brothers Waman Hari Pethe and Ganesh Hari Pethe over 100 years ago in 1909.
It has now grown into an establishment with a total of twelve showrooms across Maharashtra - at Dadar(East), Thane, Dombivli, Ghatkopar, Kalyan, Bhandup, Pune (Laxmi RD), Aurangabad, Ghodbunder Road, Panvel, Solapur and Chinchwad.
PN Gadgil Jewellers (PNG Jewellers)
Purshottam Narayan Gadgil (the PN Gadgil, in case you are wondering) established the Jewellery chain's first shop in Sangli almost 200 years ago. In 1832, the group made its next move - establishing a store in Pune.
Today the group has stores across Mumbai, Aurangabad, Nagpur, Ahmednagar, Panvel, Goa and Nanded, and in the US and UAE too.
It also launched an online store in 2013.
Kerala-headquartered Kalyan Jewellers, which has been in the business for 24 years, made a splash when it attracted Rs 1700 crore in investments in two rounds from US private equity firm, Warburg Pincus. This has helped it launch 125 showrooms across India.
In Mumbai, Kalyan Jewellers, among whose brand ambassadors are the Bachchans, have four branches.
Joyalukkas is a well known name, not just in India, but in as many as ten other countries.
The group's entry into the jewellery trade dates back to mid-1950s, when Joy's father Varghese opened the company's first jewellery shop.
Joyalukkas has won several laurels in the Gulf as well, the most prominent one being the award of the Super-brand Status in the UAE not once, but for six years in succession.
Tanishq is a relative newcomer to the jewellery sector, having set up shop just eight years ago. But then, it has a fairly large presence in the country, having already set up over 180 exclusive showrooms across more than 100 cities.
Tanishq, from the House of Tatas, offers bangles, bracelets, chains, earrings, necklaces, nosepins, pendant earrings Set, pendants, rings, wedding collections, shubham and divyam collections, traditional and modern Jewellery, diamond Jewellery, gold jewellery, silver jewellery, gemstones, diamond rings, diamond set, pearls, polki, gold coins, solitaire jewellery and bespoke jewellery.
Mumbai's richest jeweller
Mumbai's richest jeweller deals in diamond, not gold. Diamantaire Nirav Modi's has been a fairytale rise since he established his first store in 2010. Forbes now values him at over $1.8 billion and Hollywoood actresses like Rosie Huntington Whitely and Dakota Johnson love his designs. Johnson, in fact, wore earrings and bangles from Modi's Embrace collection to the Golden Globes.
The Mumbai-based Modi grew up in Belgium, dropped out of Wharton and is now based out of Mumbai. He is the nephew of Mehul Choksi, Managing Director of Gitanjali Gems, under whom he apprenticed for over 10 years. Brand ambassadors include Lisa Haydon and now, Priyanka Chopra.
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