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Wednesday, 19th April 2006 (5889 views)

The high price of gold in today's commodities market has prompted a rise in hollow gold jewellery sales, reports the Mumbai Financial Express.

With the value of gold now soaring across the world, the cost of producing, manufacturing and therefore buying gold jewellery is escalating, triggering renewed efforts to provide consumers with gold trinkets at a reduced cost.

Electroformed jewellery, or hollow gold, has provided just this. The precious metal is "painted" over a central core by rendering it electro-conductive so that the gold can maintain its shape even after the core is removed.

The new process means big business in the gold jewellery sector, with buyers holding high hopes for its success, despite the relative lack of awareness of its current existence.

"This is a very new concept and it will have to be popularised," Udai Goyal, chief operating officer of Ishtaa Gold Jewellery, told the FE. "However, over the next few years we expect such jewellery to garner a share of about 20 to 22 per cent of total sales."

The main target for sales appears to be the younger market, which has a tendency to be more receptive to new innovations and the prospect of reduced cost without losing face.

"High prices act as a deterrent for purchasing gold jewellery, especially by the youth," said K Srinivasan, the company's managing director. "Hollow jewellery makes it affordable as it comes light in weight."

Electroformed jewellery is gaining in popularity in Italy and although it is yet to take off in India, the world's largest market for gold jewellery sales, analysts see this as a future retail trend that can cross continental barriers.

 

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