Interestingly, despite high demand, gold prices per gram in Kerala are often lower than in other parts of the country.
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High Supply
With around 15,000 gold traders and jewelers, the abundant supply in Kerala keeps prices in check by fostering competition among sellers.
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Direct Imports
By directly importing gold from international markets and bypassing middlemen, many gold traders in Kerala can secure competitive prices and pass the benefits on to consumers.
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Lower Tax Rates
Lower tax rates on gold in Kerala make it more affordable for buyers compared to other Indian states.
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Good Supply Chain
Kerala's gold trade benefits from an efficient supply chain, with numerous gold refineries and skilled artisans ensuring a steady flow of products and stable prices.
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Price Regulation
The All Kerala Gold and Silver Merchants Association sets daily gold prices in the state, helping to prevent drastic fluctuations and maintain market stability.
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Tourism
As a popular tourist destination, Kerala attracts visitors from around the world, with many purchasing gold as souvenirs or gifts, boosting the state's gold trade.