API - Gold Jewellery and Gems Industry of Pakistan
About the Industry Significance Information about Gold Moulding Process Artificial Jewellery Gemstones Main markets Associations Recommendations
Industry operating as a Cottage industry Structure – mostly family ownedbusinesses and Karkhanas Karachi is the hub Light Weight Jewellery- Italian preferred Heavy Jewellery- Pakistani and Indianpreferred
Employment and GDP contribution: There’s been no consensus conducted for thissector but by a rough estimate we can make aguess that if alone in saddar there are 10,000workshops which employ minimum 5-6 workerseach, it makes up a rough total of around alakh workers in Karkhana’s alone in Saddar,whereas the 70-80 jewelry showrooms inSaddar employ minimum 7-8 workers per shopwhich makes up a rough total of around 700employs. So the total employment level andGDP contribution must be a handsome figure.
PURPOSES Investments Traditions and valuesCONSUMPTION Pakistan is the 8th largest consumer inthe world
There are four types of precious goldmetals: Yellow Gold Palladium Gold Platinum Gold White Gold Ivory (Hathi dant) is considered the gold ofAfrica; it is not of equal worth as gold but isconsidered a precious jewelry ornamentand is usually bought for souvenir orcollection purposes.
Yellow Gold: Yellow Gold is the most used type ofgold over the world. It has traditionalimportance over the sub-continentregion. Platinum Gold: Platinum Gold is the most expensive goldtype over the world. It is used in planes. Itis found in South Africa.
Raw Material: The purest form of gold is 24 karat. It is the softest form Gold. 24 karat gold is available in the form of Swiss gold bars (madein Switzerland), mainly used for investment, saving andbusiness purposes. There are many other form of gold available e.g. 14 k, 16 k, 18k, 21 k, 22 k etc. depending on the percentage of impuritiesadded. Silver and copper are added as Impurities to Gold. Impurities are added to gold to make it hard solid to give itdifferent designs.
Rate of Gold The rate of gold is fluctuated by thefluctuations in the prices of dollar and oil. Today’s Gold Price: 10 gm. (22 k) = Rs.42852/- Standard Measurement Units of Gold A Gold Analyst is called “sonar” 1 Ratti = 0.1215 mg. 1 Masha (gm.) = 1000 mg. 1 Tola = 96 Ratti = 11.664 gm.
The international key players in thegambling of gold reserves anddetermination of gold prices are US andChina.
The history to the trend of artificial jewelry in Pakistan dates back to2001, when the prices of gold reached record breaking heights dueto increasing gold demand and currency devaluation all over theworld. Due to the above stated facts gold rates and inflation reached tosuch heights that it became out of the purchasing power of thePakistani masses. The goldsmiths went out of business. That’s whenthe gold workers switched to imitation jewelry. Now the masses wereout of purchasing power and they started getting gold like designs,quality and fineness in artificial jewelry so the trend of imitationjewelry was introduced. This trend has been at its peak during the period from 2001 to 2012.At recent the markets have been seeing low prices of gold and inreturn a good turnover has been recorded in gold purchases. Theincrease in turnover was much welcomed by the goldsmiths andjewelers. Many of them mentioned that the sector grows when thegold prices are down and they pray that may the gold prices falland maintain low.
US31%HongKong11%Germany8%U.A.E16%UnitedKingdom11%Thailand7%Other16%Main Importers of Gems from Pakistan(2010-11)U.A.E.63%UK.925%US.922%Canada.459%Germany.037%Other35%Major Importers of Jewellery from Pakistan(2010-11)
In view of enormous rise in goldprices, artificial jewellery markets inPakistan are witnessing a boom. Artificialjewellery is becoming more attractive forwomen, as it is inexpensive with varietyof designs and colours. A significant dropin the sales has been observed in theyellow metal for the past few years.
A shopkeeper in Gulf Market inIslamabad said, “The core factor behindthe rise of artificial jewellery is reductionin the purchasing-power of thecustomers, who cannot afford to buygold.” It is cheap, safe and infashion, and women feel secure to wearartificial jewellery instead of goldornaments, he added.
Crafting of artificial jewellery hasbecome an industry as thousands ofpeople are earning their livelihood fromthis sector. Increase in the demand forartificial jewellery has also resulted in therise in its prices. According totraders, artificial sets are even beingbought for wedding purposes. Heavybridal sets are very much in demand.
A normal artificial set can be made ofsilver, 18 carat gold or of brass, copper, 2per cent silver, semi-precious andartificial stones. One heavy bridal setusually costs Rs20,000-35,000 onaverage, said Salman Sher, a golddealer at Gulf Market.
Dealers and traders import artificialjewellery from India and China. The materialcoming from China is cheaper because ofcomparatively less transportation cost. “We do not import jewellery directly fromIndia. Rather we do it via Dubai, whichincreases transportation cost,” said anartificial jewellery dealer. “A set that previously cost Rs250 inretail, now costs us Rs350 in wholesale andwe have to sell it for Rs450,” he added.
What is Pakistan’s edge in terms of the gems found?•Emeralds excavated from Swat Valley rank amongst the bestin the world. Their colour, with a pure verdant hue and a highdegree of transparency, is comparable to high qualityColumbian emeralds.•Topaz from Katlang is believed to be equivalent in quality tothosefound in Brazil. Peridots coming from Sput Kohistan areconsideredto be the best in the international market.•The most extensive ruby deposits are located in HunzaValley. Ruby produced from here ranges in colour from lightto deep red. Othermajor potential areas of ruby are located at Azad Jammu &Kashmir, Hazara and Dir.•World class crystals of minerals like bastnaesite, brookite,xenotine and other rare minerals, make Pakistan unique inthe international markets.
Pakistan currently has 146 geologists, 18 geophysicists, 25 drilling engineers and 7 photogrammetristsamong specialists for geological surveys. Due to the shortage of such specialists a vast area of Pakistanstill has to be surveyed for precious minerals.Pakistan has untapped reserves of some of themost rarest and valuable stones in the world.Like the deep green emerald found in Swatvalley and pink Topaz found in KhyberPakhtunkhwa (Mardan District). Due to theirrarity these stones have a high demandinternationally.
Export Promotion Bureau isundertaking the “DazzlePark” project in Karachi. Theproject which had itsfoundation stone laid inMarch 2013 is said to boostimport and export logisticsand minimize costs. Since itis situated near the JinnahInternational Airport withopportunities formidstream, upstream anddownstream industries. Itaims to process preciousand semi-precious stonesand enables export of theseto internationally certifiedstandards in either cut orpolished form or studded injewelry and gold jewelry
Even though Pakistan’s mineral sector contributes lessthan 1 % to the GDP but now production of sixty largeto medium scale commodities had started. Atindependence only six mineral commodities weremined extensively(salt, coal, sulphur, gypsum, limestone and chromite)
The Province of Balochistan and the Gem IndustryVast natural reserves found in Khyber Pakhtoonkhwa andBalochistan can bring about economic well being interrorist prone areas. And Pakistan has a whole, canbenefit from a more positive image. Mineral sectorcontributes less than 1 % to the GDP there fore thepotential for growth is enormous.These areas due to the ragged terrain and lack ofresources for labor and mining Furthermore it is negativelyaffected by the growing ethnic and sectarian violence.
Problems faced :• In Pakistan, gems used inexportable studdedjewellery are not countedin the export of gems•Lack of mining andfinancing resources inareas like Balochistan•No representation inpolicymaking circlesaccording to a TradeDevelopment Authority ofPakistan (TDAP official•Security Issue.•Disorganization•No powerful lobby to gainconcessions according toa TDAP official•The rugged terrain ofBalochistan
History Hyderabad Deccan – Golconda (diamondfound) South Africa – 5 mines – biggest in the world-DeBeers (diamond cutting and finishinginvented) Belgium is the finest cutter of diamond. Koh-I-Noor is the most expensive diamondin the world. Kolonien – Queen of England’s diamond isthe biggest diamond in the world.
Diamond’s worth is found by four basicfactors: Color Clarity Cut Karat
Some skins are sensitive to impurities andeventually to hard gold. These skins appearto have rashes when are exposed to hardor impure gold. 24 K Gold seems to be bestsuitable for such skin cases. Gold is used in the treatments of manydiseases including pigmentation andhealing of deep cut wounds. Gold is also used in many medicines andvitamin supplements.
There’s a separate association for every cluster of markets. In Karachi there’s a separate jeweler’s association for Tariqroad, Saddar and Gulf. There’s a jeweler’s association for Lalukhet and Haidery. The All Pakistan Gem Merchant and Jeweler’s Association’sHead Office is located in Saddar, Karachi presided byRaesuddin Sheikh. The association doesn’t practically perform any strategic orprimary role in the sector development. It mainly deals inresolving internal conflicts between different jewelers in themarket. The association is provided with funds from the governmentfor organizing shows to attract local and foreign customers.But the association only organizes a general and low levelshow unable to interest voluminous visitors.
Insurance to pressurize govt. to providesecurity Universal unit system Separate shows so customers won’t bedistracted Duty on import export should be subsidizedlike Dubai has 1% duty Utilize media industry New Machinery Training to workers