History of gold prices (in rupees):

1930: 180 per 10 gram
1940: 360 per 10 gram
1950: 1000 per 10 gram
1960: 1110 per 10 gram
1970: 1840 per 10 gram
1975: 5,400 per 10 gram
2000: 3,000 per 10 gram
2006: 5,400 per 10 gram
2009: 15,700 per 10 gram.

The above example whilst may not be perfect in prices suffices to illustrate that Gold surprisingly gave 300% returns from 1970 to 1975 when the world suffered worst ever recession after great Depression. Will history repeat? That is the reason behind current “Mad Gold rush”. But if you invested in the Gold in 1975, your investment gave negative returns for the next 25 years.

Two things to remember:

1. Gold generally trades in the lower range around March and July. Generally, it is the best time to buy gold and marriage season is the best time to sell God.

2. Below 11,000, Gold is a safe investment but above 15,000- it is only for traders but not for investors.

Future of Gold:

When stock markets were down in 2002, Gold was at Rs 5,400 per 10 gram. Don’t forget that Gold traded below 9,000 per 10 gram till 2007 means you might have got routine returns from Gold investment.

But investors who made investments in gold in mid-2007 are now making 70% returns in just 20 months. But I don’t know what will happen to gold investors who bought it at above 15,000 but they remain in loss even after 3 years. Why?

Gold will recede to 11,000 levels once equities make comeback. What happened to crude oil will repeat in case of gold also. Don’t forget that Gold is not even an essential
commodity. But Gold is a less volatile investment.

Examples:

1. Crude oil prices moved to $147 per barrel and Goldman Sachs people gave $200 per barrel target. It is now trading below the fundamental price at $35 per barrel.

2. Sensex moved to 21,000 and analysts and analysts gave 30,000 target. It is now trading at 9,000 levels.

3. Real Estate prices reached astronomical levels in 2007 but people bought land as if there will be no land available for purchase in future.

So what do you want to do with your accumulated GOLD?:)

The Art of Jewellery magazine did a study in December 2008 trying to find out from industry as well as people who had brought organized retail to the industry.

I was one of them & was quoted extensively in the article.

A difficult question to answer, particularly in India.

Whist it is true that the branded market is growing, with the plethora of brands having been introduced in the last half decade, presumably people are spoilt for choice.

Whilst the jewelers - branded & otherwise are pushing this, there are some basic differences between India & the USA which holds nearly 45% of the world diamond market. Read the rest of this entry »

Some days ago, I met up with Hemant Shah an outsider, but veteran of the Jewelery business who had started his own business of Jewelery Retail - casual, chic, semi precious, precious.

He wanted some input on how this would be received via his unique ‘Jewellery on Wheels’ idea as well as the website.

My instinct reaction was - Brilliant idea, who is going to execute it? On hearing his answer that they would do it internally, my heart sank.

Since he had asked as a friend, I did not really push it much, but cautioned him about the pitfalls in terms of Consistency, Change, Coverage of area, backup.

Then, whilst I saw the enthusiasm that he was brimming with, wished him all the best!

Hemant Shah with his proud Vehicle

They launched it with 3-4 custom made vehicles by Dilip Chhabaria. Worked on the novelty value for a while & then due to other factors also, had to shut it down.

In Bombay Times September 13th Katrina Kaif the brand ambassador of Nakshatra diamond jewellery says Diamonds are not girl’s best friend anymore.

Way to go lady!!! Read the rest of this entry »

An Industry shrouded in secrecy, handed down from father to son over decades both employers & employees. A parallel “Jo Hukum” Raja Darbar functioning.

Everyone is a ‘Bhai’. Rameshbhai, Arunbhai, Pappubhai BUT not those Bhais this is a term of respect & belongingness.

Read the rest of this entry »

April 2005 –

Finally decided to take a plunge into an Industry that is around 70,000 crores (according to various studies & reports). Out of this only 3% is the branded segment, though the industry as a whole is growing at 20% + year on year. Read the rest of this entry »

In May 2007 JCK India had launched and wanted to do an Executive Profiling of a Non Industry person anaggh-desai now in the Jewellery Trade.

Anaggh A. Desai, CEO, Damas India, in a tête-à-tête with JCK India, draws a fine line between being a retailer and a businessman while defining success as a combination of confidence, accomplishment and creative freedom.

Read More….

Buying point-of-sale (POS) software isn’t as simple as it used to be. Though technology is an enabler for many great advances, it has also made the decision-making process much more complex. Retailers must consider their future needs & also anticipate requirements that may be beyond their control.

With the size of the investment in both software and hardware, it is a major decision for retailers in terms of time & money coupled with ROI to choose the right POS. You as a retailer wants to end up with a solution that’s antiquated before it’s even installed! Read the rest of this entry »