Attractive time to buy gold

Look at whats happened to gold. Its touched a low of Rs. 11, 860 per 10 gms for 24K on 08/08/08 in Delhi. And no ones complaining: Neither the buyers nor the jewellers.

Our sales personnel haven't heaved a sigh of relief for the last couple of days. When they are not attending customers they are making calls to our existing customers informing them of the current gold prices. I am personally calling up friends, relatives and acquaintances.

This time of the year is usually slow in sales for the jewellery industry. But this fall in gold prices has been a shot in the arm for the sales of both gold jewellery and gold bars/biscuits. So much so that people are planning ahead and buying gold for the marriage season. As gold prices are expected to rise again during that time.

So, Should you buy gold now? There are both sides of the line still. You will find experts advising to buy gold now and not really wait for it to hit bottom. While some are of the belief that gold prices are slated to fall further to Rs. 11, 000.

Whatever your call. You can not blame prices not being within reach for your important gold purchases anymore. Be it investments, marriage or gifts.

Raksha Bandhan Special Offer - Aug. 9 - Aug.14

Raksha Bandhan Special Offer: Kathana Jewellers is celebrating the festival of brother-sister bonding with a special discount for the week long period leading upto the festival. There is a 50% off making charges on store-wide collection of Gold and Diamond Jewellery.

Raksha Bandhan is celebrated on Aug16th. The discount runs from 9th Aug to 14th Aug. This is valid for our entire jewellery collection except gold coins and customized orders. So be it a earring or a gold bangle you want to splurge on we have our entire collection for you to choose. And the icing is, that gold prices are way below Rs.12,000.

So go ahead and shop and just ask your brother to accompany you. I am sure he wouldn't want you to dip in your wallet.

Jewellery shoppers: Beware of these 5 pitfalls on Ebay India

A newspaper story and a couple of blog mentions caught my attention and I thought I will chip in with my thoughts on this.

The newspaper story that ran in ET about ebay selling 1 product a min and the most selling category online is jewellery must have certainly frowned a few brows. Ebay sells a jewellery piece every 7 mins, more than any other category including cellphones, cameras, coins, stamps etc.

That is definitely a shot in the arm for the entire e-commerce industry in India.
But before you jump with both feet in it. Here are a few things you need to look for when shopping online at ebay India.

1) Home grown certificates for diamond authenticity.Most of the sellers on ebay provide their own certificates for the authenticity of diamonds. There isnt any standardized GIA, EGL certificates offered. which means these certificates dont hold water when you go selling them offline.
2) There is no true exchange/refund. Online shopping entails making a purchase decision looking at the pictures provided by the seller, which are often not so good quality. When a user is not satisfied with the actual product the return costs the consumer 10%- 25% or more as 're-stocking fees'. I found a seller which claimed - 100% satisfaction guarantee and yet had a 20% restocking fee if the item was returned.
3) The gold purity is 14K in most cases. Offline stores rarely sell jewellery items in 14K. This translates into good savings.
4) None of the jewellery is hallmarked. There are studies published by BIS on the prevalent purity of most gold items sold offline. Why cant the same happen online?
5) Adjectives like "full cut" and "premium white" describe the quality of diamonds.When internationally its an accepted norm to use the 4Cs namely cut, colour, carat and clarity.

These are early years of ecommerce in India and the biggest draw of online commerce has been the low prices. So the consumers are throwing caution to the wind and not asking as many questions as they would ask the offline stores. Both consumers should start asking for more and sellers should be prepared to offer more as this mode of shopping has to gain mainstream acceptance.

Bangles Mania

Last week was spent photographing a few of our in store designs. As our website is in the process of a upgrade where more pictures will find a place. This series of bangles mania showcases some our well received designs in handmade, and machine made 22K hallmarked gold.

A handmade bangle.

A antique look handmade bangle


Another beautiful antique look bangle. This is enamelled ( meena work) in various colours.


A machine cut bangle.



An unusally designed antique looking bangle with meena work and semi precious stones. This is designed by craftsmen from Calcutta.


A classic bangle with 'drops of gold' design. It is embellished with Semi precious stones.

A Bangle Stack.

Fighting the Goliath - Tanishq

Talking to a friend over dinner a few nights ago. One question that came up was how are the family jewellers going to fight the onslaught of Big Retailers in the future.

Family jewellers have ruled the indian jewellery retailing for centuries now. So far, so called "organized retailing' was non existent or just a miniscule share of the more than $12 bn. jewellery market in India.

But now the big jewellers are upping the ante. The goliath in the jewellery industry -Tanishq recently opened its storefront in Pitampura. Goliaths being goliaths are deep pocketed and omnipresent rivals.
In the jewellery industry , its safe to say loyalty among consumers drives the family jewellers. But shifting loyalty is just a "so low making charges" away. So, is there scope for innovation beyond loyalty that can keep the family jewellers flags flying high.

With the impending big retailers push in the jewellery sector. What are the options for a family jeweller? How can they fight the onslaught? So what is it the davids can do the goliaths cant?

In this post I try to dig deeper to analyze some of those options.

1) Design is not a commodity:

No matter how big the giant be, no matter how deep their pockets are . Design will never be a commodity. And precisely thats the reason when you don't like something you have the option to go to another shop. A big retailer can only have so many designs which will appeal to so many users. Designs at a big retailer are mass produced to satisfy the lowest common denominator. And this leads to a distaste when you see someone else wearing what you are wearing.

2) Owning a niche:

Travelling through Chandni Chowk one cant help but notice how single product businesses are flourishing. People from all over delhi flock to the bylanes of this part of delhi for its savories. Whether its the dahi bhallas of natraj or the kachories of the corner shop past the paranthe wali gali. These businesses have held their own despite the biggies like haldirams and are just a stones throw away.
The remarkable thing these businesses have done is own a niche in the food sector. Similarly owning a niche whether its custom diamond engagement rings, moissanites or just polki jewellery has its own rewards.

3) Going the extra mile err... kilometer:

Its good to have certain processes which a company follows and have pre-determined rules in place. Often that helps in resolving conflicts later on. The sales person is trained to handle situations like this in a text book fashion. In a big retail store , Professionals have little incentives to make a one to one relationship with the clients.

When a customer needs a little bit of extra service or explanation. Can your 'processes' handle it? For example we have a 30-Day 100% money back on all our stocked jewellery. What if a customer came with a peice of jewellery on the 31st day or 35th day or maybe even the 40th day after the purchase? We will still be able to offer the same guarantee whereas the stringent 'processes' of the retail chain might not be able to extend that courtesy. Or schedule a payment collection from home? Can they open the store on a holiday to allow you to make that last minute gift purchase for your wedding anniversary?

4) Taking the best from the competition.

Besides Tata's reputation behind it, it was the standardization at Tanishq. Consumers knew that the gold purity was assured and so was the quality of craftsmanship. And this wouldn't vary if you went from Kashmir to Kanyakumari. Quickly comply with the BIS hallmarking standards. The sooner you do the better. After all "its profitable to be ethical".
Side Note: Tanishq follows its own certification and not the BIS certification.

5)Being a part of the community:

We have been in the north west delhi for 15 years and that has helped us to understand this neighbourhood better than a lot of other people. A lot of small businesses have been in their respective neighborhoods for that long or longer. Take that and mix it with social responsibility(CSR). For E.g. you can support certain causes with school like no-firecrackers-this-diwali. You can adopt a road divider and green it up. You can sponsor cultural events in your neighborhood. No retail chains can be a part of your community like you can.

Goliaths like Tanishq has access to huge amounts of fund which are used to buy more designs, a better shop ambience and a scientific Karat-o-meter(to verify the purity of gold). Ofcourse, the Tata brand brings in unrivalled brand equity.

Davids are nimble they can 'change' fast and any change by goliaths will require innumerable meetings among their directors, they need to take care of cultural issues(being pan india) , logistics becomes a nightmare and sometimes their computer systems wont be able to handle it.

In the storybook outcome, David wins. Lets make that story come alive in the jewellery sector.

Image Courtesy: DNA- The third mobile operator

Lightweight Jewellery flavour of the season

There arent a lot of jewellery shows happening in the capital. So when Reed Exhibitions came to town with the JCK jewelry exhibition last weekend, you surely cant miss it. The markets in a large part of Delhi remain open on weekends so Monday, being off, seemed the right time to make that beeline for the hall no. 10 in Pragati Maidan.

This was JCKs 3rd edition of their B2B show in Delhi. And if you are wondering about the timing then let me tell you that this is the appropriate time for retailers to replenish their stocks just before the wedding & festive season.

A special note of thanks to the marketing manager of reed exhibitions(yes they understand what role bloggers play) who allowed us to take pictures of the galleries inside the hall. We were told not to take close ups of the jewellery items or the sales staff to which we honestly adhered.

The show featured wholesale jewellery manufacturers from around India and international jewellers from Italy, Dubai and Hong Kong. Gauging from the mood of the exhibitors it was clear that the high gold prices meant most of the jewellery was light weight. And this was visible across the exhibition hall, except for the wholesalers from South India who still displayed chunky jewellery designs from your neckline to midriff.

Another trend visible at the show was the apparent shift of precious metal jewellery from a 'storehouse of value' to a fashion accessory. Especially the Kundan Polki jewellery designs reinforced that paradigm shift from value in favour of design.

We at Kathana Jewellers are taking note of such shifts in consumer trends and appropriately making changes which will reflect in our store this coming diwali of 2008.

In the picture from left to right. Ankur Gupta and Yours Truly Aditya Gupta.

Jewellery Code for Professionals, Angadia and the Economics of Gold Digging

Jewellery Code for Professionals
Are you getting ready for an interview? Not sure what jewellery to wear. As we adopt western attire at work we might as well pick some cues on how jewelry laden one should be. Virginia Tech has a simple guide on Interview Attire with excerpts here(via Jewelry Design Depot).


Jewellery code for Men:
Wear a conservative watch. If you choose to wear other jewelry, be conservative. Removing earrings is safest. For conservative industries, don't wear earrings. Observe other men in your industry to see what is acceptable.

Jewellery code for Women:
Wear a conservative watch. Jewelry and scarf styles come and go. Keep your choices simple and leaning toward conservative. Avoid extremes of style and color. If your industry is creative, you may have more flexibility than someone pursuing a conservative industry.

Angadia: Couriers of the Diamond Industry

If dabbawallas of Mumbai have attracted the attention of western media then angadias are next in line for their jaw dropping reliability in delivering diamonds across India.

Packets of diamonds called 'parcels' in industry lingo are carried on-person by these 'Human couriers' from the diamond hub of Surat and brought to major jewellery markets of India like mumbai, delhi, Kolkata and elsewhere.
For the value even a small diamond carries one would be hard pressed to believe that human couriers with not much of personal safety equipment can deliver reliably every day, every time and every parcel. It might seem archaic in these times to think of transporting these valuable goods without any lock and key but no ones complaining. Read more on JCKonline.


The Economics of Gold Digging
And finally, a must read from NYTimes' Freakonomics blog co-autohored by Steven D. Levitt talks about a different twist to The Economics of Gold-Digging. Enjoy.

Answers to the test

Ok time to go through the answers for the previous test. For the uninitiated its answers to the questions in the post below this one. I remember how I used to feel in my school days where soon after giving the test I would like to know the answers. Friends would huddle together to discuss them, of course now you have the internet to turn to.

One reason to give this test is to see how 'jewellery aware' the visitors or stumblers to this site are. I have no clue how many took the test and how many were even right. With not much actvity in that dept. I guess we are all left with wild guesses to make. I have a better response to the poll that is going on right now. The findings of that poll would be analysed in a post after this one.

So quickly the answers

1) c : there are 5 signs needed to identify a hallmarked jewellery. They are BIS logo, Purity fineness, Assaying or hallmarking centre's logo, Year of hallmarking and finally the jeweller's logo

2) d: the survey found 90% of the ornaments tested for the claimed purity to be grossly deficient in purity. More articles here.

3) b: The corresponding hallmark sign for 18k purity is 750. Want to know whats the sign for other purity levels? Read here

4) a: Hallmarking ascertains the purity of only the gold used in the ornament be it gold jewellery or diamond jewellery.

5) a: A consumer should lose only the making charges on return of gold jewellery.

6) a: Yes diamonds mounted on jewellery are certifiable . Thanks to the opening of diamond grading labs like IGI it is now possible to know the clarity and color of diamonds 'embedded' in gold.

7) b: A certificate by a reputed grading lab like IGI, GIA or EGL only indicates the characteristics based on 4Cs. It doesnt indicate the value of the diamond.

8) a: The 4Cs of a diamond are cut colour, clarity and carat. Diamonds sold with names as white, super deluxe or eye clean are a clever way of hiding the other qualities of a diamond.

Take this test to determine your jewellery quotient.

I have put up an impromptu test for you. Actually I thought of this test yesterday afternoon but decided on questions just now. What better way than this to quickly replenish your knowledge in jewellery 'must knows'. Leave your answers and email ID in the comments section.

Answers to this test will be revealed/explained in the next post. Here it goes:

How many marks does a hallmark jewellery have.
a) 3
b) 4
c) 5
d) 6

A survey conducted by BIS found how much(in percentage) jewellery were deficient in purity claimed
a) 20%
b) 50%
c) 75%
d) 90%

What is the corresponding hallmark for a jewellery made in 18k gold?
a) 916
b) 750
c)585
d) 958

Hallmarking ascertains the purity of
a) Gold
b) Diamond
c) Gemstones
d) Alloy

Best Practise Question: When returning gold jewellery how much does a consumer lose?
a) Only making charges
b) making +10%
c) making +5%
d) Nothing

Are diamonds mounted on jewellery certifiable?
a) Yes
b) No
c) Depends

A certificate of diamond also indicates its value
a) Yes
b) No

The main characteristics of a diamond are
a) Cut, Colour, Clarity, Carat
b) Cut, Colour, Eye-Clean, Carat
c) Shape, Colour, Clarity, Carat
d) Cut , Colour, Clarity, Deluxe quality

Let me give you a hint: Only one choice is correct in the above test.
You can use the internet and our blog to find answers to this test but you wouldn't know your real jewellery quotient then. So don't cheat.
More than one question is India specific and doesn't indicate behaviour/patterns in other countries.

Photo credit jubea via flickr.com

New Poll : Most important aspect when buying Jewellery

Dear Visitors to this blog. We have a new poll displayed on the right column. The poll 'Most important aspect when buying Jewellery' takes into account various reasons people shop at a jewellery store. You can select multiple options if you like.

The results are out. I am listing out the choices and the number of votes they received.

Purity --------7
Designs -------0
Occasion ------1
Gold Price ----1
Certification --2

The results indicated that the most important aspect while buying jewellery was Purity. Some kind of certification for the bought jewellery not just for the gold but also diamonds came in second. The occasion and price of gold tied for the 3rd place. And it seems it didn't matter so much as far as designs are concerned.

I am sure its not the same order for most of the people as jewelers like tiffany's have built business with their exclusive designs. You can be assured of the purity of gold by insisting on a hallmark jeweller. Gold and diamonds have different certification criteria. Gold is certified for its purity using 5 hallmark signs which are laser-carved on the ornament and doesn't come with an explicit certificate from the assay centre while diamonds are graded on 4Cs and should come with certificates from reputed institutions like GIA, IGI, EGL.