Since Kerala was formed on November 1, 1956, the gold trade has evolved alongside the state’s social and economic development. As Kerala completes seven decades, the transformation witnessed by its jewellery sector is truly remarkable.
Quick Summary
- Kerala’s gold trade has undergone a remarkable transformation over seven decades since the state’s formation in 1956.
- The industry evolved from the restrictions of the Excise Raj to a more liberalised gold trade.
- Traditional jewellery designs gradually gave way to global fashion collections, lightweight ornaments and modern manufacturing.
- Gold purity standards progressed from lower-carat jewellery to 22-carat, 916-purity hallmark jewellery with six-digit HUID identification.
- The price of 10 grams of gold increased from approximately ₹90 in 1956 to ₹1,42,100 on October 31, 2026.
- Kerala’s jewellery industry has developed into a major economic network supporting hundreds of thousands of livelihoods.
- Digital technology, Artificial Intelligence, global opportunities and transparent business practices are expected to shape the industry’s future.
Kerala Turns 70: The Golden Journey of Kerala’s Jewellery Trade Through the Decades
From Lower-Carat Gold to 916 HUID Purity; From Traditional Ornaments to Global Fashion Designs!
Kerala’s Seven-Decade Transformation
Since Kerala was formed on November 1, 1956, the gold trade has evolved alongside the state’s social and economic development. As Kerala completes seven decades, the transformation witnessed by its jewellery sector is truly remarkable.
Gold: From Luxury to an Integral Part of Everyday Life
There was a time when gold jewellery was considered a luxury and a form of savings owned by only a small section of society. Today, gold has become an integral part of the lives of ordinary Keralites, playing an important role in weddings, celebrations, savings and investments. The journey from an era when gold was accessible to only a few to the emergence of Kerala as a major jewellery-consuming market is a remarkable story spanning seven decades.
From an Era of Restrictions to a Liberalised Trade
The Challenges of the Excise Raj
The gold trade of the 1960s was far more complicated than it is today. The manufacture and sale of lower-carat jewellery, including 14kt gold ornaments, were subject to stringent Central Excise regulations and complex legal procedures. The system, widely known as the ‘Excise Raj’, posed significant challenges to traders. Several restrictions governed the possession, manufacture, distribution and sale of gold.
The Transition Towards a Liberalised Market
Over time, many of these restrictions were removed, paving the way for a more liberalised gold trade. This encouraged thousands of new entrepreneurs to enter the sector. It also facilitated the transformation of traditional small jewellery shops into modern showrooms. This was a significant turning point in the commercial history of Kerala.
A Revolution in Jewellery Designs
The Evolution of Traditional Jewellery
At one time, traditional Kerala jewellery designs dominated the market. However, with changing generations and evolving preferences, significant transformations took place in the design and manufacturing of ornaments.
From Royal Traditional Designs to Global Fashion
The jewellery market gradually evolved from royal traditional designs to world-class fashion collections, and from heavy ornaments to lightweight jewellery.
Technology and Innovation in Modern Jewellery Manufacturing
Today, international fashion trends, modern technology, innovative designs, machine-based manufacturing and precision finishing have become integral parts of Kerala’s jewellery industry.
From Lower-Carat Gold to 916 HUID Standards
The Progression of Gold Purity Standards
The last seven decades have witnessed remarkable progress in the purity and quality standards of gold. The Introduction of 916 Purity and HUID Identification – The trade has evolved from lower-carat jewellery to 22-carat, 916-purity hallmark jewellery, supported by the six-digit HUID identification system.
Hallmarking and Consumer Confidence
Hallmarking has played a crucial role in strengthening consumer confidence and ensuring transparency. Today, consumers have better mechanisms to identify the purity of gold jewellery and verify its authenticity.
An Unprecedented Rise in Gold Prices Over Seven Decades
The Value of Gold Has Multiplied Thousands of Times!
Seven Decades of Gold Price Appreciation
One of the most remarkable chapters in Kerala’s 70-year gold trade history is the unprecedented increase in gold prices. Compared with the price appreciation of many other products, the rise in gold prices over these seven decades has been extraordinary.
Gold Prices: From ₹90 to ₹1,42,100
In 1956, the price of 10 grams of gold was approximately ₹90. According to the market rate on October 31, 2026, the price of 10 grams of 24-carat gold in Kerala is approximately ₹1,42,100.
A 1,566-Fold Increase in Gold Prices
This means that the price of gold has increased approximately 1,566 times over seven decades. The purchasing power of money has changed so dramatically that an amount sufficient to buy 10 grams of gold in 1956 would not even buy one-hundredth of a gram at today’s prices.
Global Factors Influencing Gold Prices
Global economic conditions, the strength of the US dollar, the foreign exchange rate of the Indian rupee, inflation, central bank gold reserves and geopolitical tensions have all continuously influenced gold prices.
Changing Consumer Preferences and Purchasing Patterns
Despite this extraordinary increase in prices, Keralites’ interest in gold has never diminished. Instead, purchasing patterns, jewellery weights and designs have evolved in line with consumers’ purchasing power and changing preferences. The rising price of gold has also been an important factor behind the shift from heavy ornaments to lightweight jewellery.
Gold as Jewellery, Savings and Investment
Consumers who once viewed gold primarily as jewellery now increasingly consider it an important part of their savings, financial security and investment portfolios.
A Strong Presence in Kerala’s Economy
From Family Businesses to a Vast Economic Network
What began as a small-scale family business has today developed into a vast economic network connected with manufacturing, wholesale trade, retail, jewellery designing, skilled workers, artisans, transportation and banking, Employment and Livelihood Opportunities- The sector supports the livelihoods of hundreds of thousands of people.
Jewellery Businesses Across Kerala
Jewellery establishments are now actively operating in every district, town and village across Kerala , Kerala’s Growing Presence on the Global Jewellery Stage As designs and technologies from different parts of the world reach the Kerala market, the state’s jewellery trade is also establishing a significant presence on the global stage.
Seven Decades Behind Us, A New Future Ahead
A Journey of Transformation and Resilience
The industry has witnessed an era of restrictions, tax reforms, technological advancements and changing consumer preferences. It has navigated historic fluctuations in gold prices, overcome challenges and continuously explored new opportunities.
The People Behind Kerala’s Golden Journey
In Kerala’s 70-year history, the gold trade has carved out its own golden chapter. Behind this growth are generations of dedicated jewellers, goldsmiths, skilled artisans, employees and loyal consumers who have contributed to the industry’s development.
Building a Stronger and More Sustainable Future
The next goal is to build the jewellery trade of the future for the coming generations. Through digital technology, Artificial Intelligence, global market opportunities, modern accounting systems and transparent business practices, the sector must move towards a stronger and more sustainable future.
Kerala’s Golden Journey: A Historic Transformation
As Kerala celebrates its 70th anniversary, we can proudly say:
From lower-karat gold to 916 HUID purity…
From traditional ornaments to global fashion…
From small-scale businesses to a market recognised across the world…
From ₹90 to over ₹1.42 lakh — a historic transformation in the price of gold…
Through seven decades of remarkable transformation, Kerala’s gold trade has continued to grow and evolve.
FAQs
How has Kerala’s gold trade evolved over the last 70 years?
Kerala’s gold trade has evolved from a restricted market dominated by traditional jewellery businesses into a modern industry featuring advanced manufacturing, global fashion designs, hallmarking and modern retail showrooms.
What was the Excise Raj in Kerala’s gold trade?
The Excise Raj refers to the period when the manufacture and sale of gold jewellery, including lower-carat ornaments, were subject to stringent Central Excise regulations and complex legal procedures.
How have jewellery designs changed in Kerala?
The market has transitioned from traditional Kerala jewellery and heavy ornaments to lightweight jewellery, international fashion trends and contemporary collections.
What is the significance of 916 HUID hallmarking?
916-purity hallmark jewellery represents 22-carat gold. The six-digit HUID identification system helps consumers identify and verify the authenticity of hallmarked gold jewellery.
How much has the price of gold increased in Kerala since 1956?
The price of 10 grams of gold increased from approximately ₹90 in 1956 to approximately ₹1,42,100 for 10 grams of 24-carat gold on October 31, 2026, representing an increase of approximately 1,566 times.
What factors influence gold prices?
Global economic conditions, the strength of the US dollar, the Indian rupee’s foreign exchange rate, inflation, central bank gold reserves and geopolitical tensions influence gold prices.
How does Kerala’s jewellery industry contribute to the state’s economy?
The industry supports manufacturing, wholesale and retail trade, jewellery designing, skilled workers, artisans, transportation and banking, providing livelihoods to hundreds of thousands of people.
What will shape the future of Kerala’s jewellery trade?
Digital technology, Artificial Intelligence, global market opportunities, modern accounting systems and transparent business practices will play important roles in shaping the industry’s future.
Source: SVAR Media Network
About SVAR Media Network – India’s Best Source for Jewellery News, Magazines, Newsletters and Media
SVAR Media Network is India’s No. 1 Destination for Jewellery News, setting the gold standard in timely, trusted, & trend-driven coverage across the Gems & Jewellery industry. As the Most Followed Jewellery Magazine & Media House in India, SVAR delivers Daily Jewellery News India Updates, market insights, & global developments through its platforms like Jewellery Magazine, Newsletters, AI Powered News Bulletins, Website, Social Media, Podcasts, & much more.
Recognized as Asia’s one of the Best Media in Jewellery & one of the World’s Best Jewellery Media, SVAR Media Network sets Unparalleled Standards in the Gems & Jewellery industry. SVAR is the Most Trusted & Widely Read Voice in the Gems & Jewellery Community.
Renowned as India’s Best Jewellery Magazine & Leading Jewellery Media, SVAR blends legacy with cutting-edge innovation by delivering:
- Best in class Jewellery Magazine for the Gems & Jewellery Industry & Jewellery Enthusiasts
- Real-time AI-Powered Jewellery News via SVARA AI, the World’s First AI Anchor in Fashion, Gems & Jewellery Industry
- India’s One of the First Gems & Jewellery Podcasts
- Digital Jewellery Newsletters for professionals and enthusiasts
- ISO 9001:2015 Certification, the first in the jewellery-media sector, proving our commitment to excellence
- Asia’s First & World’s Second Meta Verified Jewellery Media Brand
Ranked #1 among the Top 5 Gems & Jewellery News Websites, Top 10 Jewellery Magazines in India, & Most Influential Jewellery Media Brands, SVAR Media Network is your Trusted Source for Accurate, Fast, & Future-Focused Jewellery News.
SVAR Media Network is India’s No 1 Digital Media in Jewellery Industry & continues to be the Leading Jewellery Magazine & a Global Leader in Jewellery Media. SVAR Media Network offers a diverse range of services, including: Monthly Magazines, Digital Newsletters, Al-Driven News Bulletins, Social Media Promotions, Website Blogs & Articles, WhatsApp Updates, Podcasts & more…
Whether you seek updates on New Launches, Trade Shows, Celebrity Campaigns, Trends or Market Movements, SVAR is the Authority in Jewellery News India & beyond.
Explore the World of Gems & Jewellery with SVAR Media Network — Your Best Source for Trusted, Trend-Setting Jewellery News & Media, Updates, Podcasts & more…
