Sify.com's today gold rates page for the city of Mumbai showcases most accurate rates, gold-trends, insights from the business in an easy to understand manner for readers.
Gold and Aamchi Mumbai have a rich connection of over two centuries tracing back to an era when the city was named Bombay. The city and its legacy of Gold is visible from the narrow bylanes of Zaveri Bazaar, Tardeo, Dadar, and even into suburban areas such as Thane or Ghatkopar. Don't be shocked if one of those roads opens into a half-a-century old gold-shops. Prominent examples of legacy jewellery names include PN Gadgil jewellers (a popular brand from Pune with branches in Mumbai) that began business sometime in 1832. The other popular name is Tribhovandas Bhimji Zaveri that operates at least 32 company owned stores across. TBZ's first store opened sometime in 1864 - 156 years ago. Babubhai Jagjivandas another popular name in the jewellery industry has had presence since 1919. Talk of legacy and the city headquartered association - The India Bullion Jewellers Association was formed in 1919. IBJA is a venerated name in the industry and even the RBI trusts their market-data for calculating Sovereign Gold Bonds.
It is not a surprise any longer that Mumbai, the city that doesn't sleep, is the starting point for Gold jewellery and even bullion trading in the country. An unverified street estimate says that 50 percent of India's trade is controlled from Mumbai. Although cities such as Ahmedabad, Chennai, Jaipur, Delhi and Kerala have a signficant contribution to India's Gold trade, but ever since a tweak in GST policy, Mumbai has added more in terms of contribution. A lion's-share of Mumbai's trade originates from the over 150-year-old Zaveri Bazaar that is home to some 7000-plus gold shops. Zevar means jewellery and bazaar stands for market. It is hence little wonder that Zaveri bazaar is mostly crowded of gold buyers and the street has mostly dazzled of a gold-like lustre. For those unaware, this market is located just behind Mumbai's famed, workaholic and almost always busy Chhatrapati Shivaji Terminus station, formerly known as Victoria Terminus.
Mumbai's contribution to India's Gold trends also stems from the availability of artisans and not to forget scores of companies involved in the trade of gold and jewelry. Most of these companies are based out of the Bharat Diamond Bourse at Bandra-Kurla complex while the legacy ones still prefer to operate from Zaveri Bazaar. India's richest diamantaires call the Bharat Diamond Bourse their home. The latest feather to Mumbai's towering Gold market is the arrival of India's largest jewellery park in Ghansoli in Navi Mumbai. Sometime in 2019, the Gems and Jewellery Export Promotion Council (GJEPC) signed a Memorandum of Understanding (MoU) with Maharashtra Industrial Development Corporation (MIDC) to develop 25 acres of land for over 5000 jewellery units ranging from 500-10,000 square feet. The initial investment is a mammoth Rs 13,00 crores (US$ 2.09 billion).
A peep into Mumbai's fabled jewellery market
With the arrival of a new GST regime in 2018, Mumbai seized its 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 jeweller and bazaar means market. Zaveri bazaar 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. 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.
How do jewellers from Mumbai determine gold rates?
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. Readers must note that buying hallmarked gold and demanding bills is what every gold buyer must insist on.
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. Some prominent gold jewellery chains though decide to go with their own rates.
Jewellery ornament trends in Mumbai:
A recent study suggess bangles and chains are the most sought-after jewellery ornaments in Mumbai and contribute between 30-40 percent of demand.
Necklaces contribute between 15-20% and rings - ear rings and finger rings - between 5-15%. Unlike the south trends, gold buyers in Mumbai are interested not just in 22k gold jewellery. They buy 18k and 14k gold too.
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, according to a 2018 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 baazu-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.
Hall-marking in Maximum City:
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, with Mumbai alone boasting of over 300 hallmarked gold jewellery showrooms.
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.
Top and reputed gold jewellery showrooms of Mumbai:
- Tribhovandas Bhimji Zaveri: 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 city'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: Started by two brothers Waman Hari Pethe and Ganesh Hari Pethe over 100 years ago in 1909, the business has grown into an twelve mammoth 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.
- Kalyan Jewellers: 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: 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: The relative newcomer to the jewellery sector set up shop just a decade ago and has had a fairly large presence in the country. Tanishq has 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.
The name you shouldn't forget: That Diamantaire
With Hollywoood actresses like Rosie Huntington Whitely and Dakota Johnson swearing by his designs, and Priyanka Chopra turning his brand ambassador, it seemed like this Modi was set to shine brighter than his famed jewels. Mehul Choksi's nephew - the soft-spoken Managing Director of Gitanjali Gems, apprenticed for over 10 years and hailed as the king of India's diamond circuit but the PNB fiasco changed his image overnight.
India's second largest public-sector bank - Punjab National Bank alleged Modi as the main beneficiary of a $ 2 billion swindled (a whopping Rs 12600 crore) conducted over seven years pulling the fabled business to a screeching halt.