The market could witness record sales in terms of value this year, the quantity of gold consumed by weight may decline because of high prices
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Keralam’s gold jewellery sector is pinning its hopes on robust Onam sales, with the festival being one of the most important business seasons for the State’s jewellery industry.Against the backdrop of soaring gold prices, the Kerala Gold and Silver Merchants Association (KGSMA) has estimated that gold jewellery sales in Keralam during the 2026 Onam season could cross ₹10,000 crore in value. Quoting various market reports, the association said sales during last year’s Onam season were estimated at around ₹7,000–₹8,000 crore.Expected growthS. Abdul Nazar, General Secretary of KGSMA, attributed the expected growth to the increased exchange of old gold for new jewellery, the growing demand for lightweight and simpler designs, the overlap of the Onam and wedding seasons and the arrival of NRIs from abroad.However, with gold prices remaining at historically high levels, consumers are likely to buy lower quantities of gold by weight. Therefore, an increase in sales turnover does not necessarily indicate a corresponding rise in actual gold consumption, he said.The season is also expected to pose greater challenges for small and medium-sized jewellers. Rising gold prices, increasing operating expenses and higher regulatory compliance costs have put additional pressure on smaller traders. KGSMA has urged the government to extend greater support to the jewellery trade.Record sale“The ₹10,000 crore figure is not an official statistic but rather KGSMA’s market assessment based on prevailing gold prices, the Onam-wedding season and consumer trends. While the market could witness record sales in terms of value this year, the quantity of gold consumed by weight may decline because of high prices,” the association said.The price of 22-carat gold stood at ₹14,600 per gram on Thursday.Published on August 20, 2026
