Jewellers across Kerala will charge one standard price for 18-carat gold from October 15, ending store-to-store differences. Trade bodies say 18-carat now makes up 10-15% of the state's gold jewellery trade.
At a glance
- The 18-carat price will be worked out with the same proportional method jewellers already use for 22-carat gold.
- Demand for 18-carat is rising because diamond-studded and rose-gold pieces are mostly made with it.
- Trade leaders say the state lacks reliable sales data broken down by gold purity.
Background
Gold purity is measured in carats. 24-carat is pure gold, 22-carat is about 91.6% gold, and 18-carat is 75% gold mixed with other metals that make it harder. Kerala's jewellers publish a common daily rate for 22-carat gold, but until now there was no agreed method for pricing 18-carat, so rates could differ from shop to shop.
What happened
Gold trade organisations in Kerala have agreed to standardise the price of 18-carat gold at jewellery outlets across the state, BusinessLine reported. The new pricing took effect on October 15. The decision was taken under the Kerala Jewellers Association Coordination Committee at a meeting presided over by K Surendran, state president of the Kerala Gold and Silver Merchants Association (KGSMA).
S Abdul Nazar, the KGSMA's state general secretary, said the 18-carat price will be set using the same proportional criteria that apply to 22-carat gold. The aim is to remove price differences between stores and make pricing easier to compare.
Why 18-carat matters now
Buyers are turning to 18-carat gold. Nazar said it now accounts for an estimated 10-15% of Kerala's gold jewellery trade, a sign of changing tastes. Diamond-studded jewellery and rose-gold ornaments are increasingly made with 18-carat gold.
Price is the other draw. Nazar said the gap between 18-carat and 22-carat jewellery gives buyers a significant cost advantage. He described 18-carat as an attractive, budget-friendly option.
What it means for buyers
A common method should make 18-carat rates easier to check before buying. Nazar also said the trade lacks reliable sales data by purity, which makes market analysis and price comparison harder. He said a standard pricing method and accurate sales statistics would bring more clarity to this growing segment.
Our read
Outlook: neutral. This is a local pricing reform, not a change in supply or demand. It affects how 18-carat jewellery is priced in Kerala, not the gold price itself.
What to watch
- Whether jewellers in other states adopt a similar common method for 18-carat pricing.
- Whether Kerala's trade bodies begin publishing sales data by gold purity.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10-15: A standard pricing method for 18-carat gold takes effect at jewellery outlets across Kerala.
Demand Drivers
Diamond-studded and rose-gold designs, mostly made in 18-carat gold, are lifting demand for the lower purity.
Government Policies
This is a voluntary trade decision by Kerala's jewellers' associations, not a government rule.
What could lift prices
- Cheaper 18-carat pieces can keep jewellery buyers in the market when gold prices are high.
- Clearer pricing may encourage more buyers to try 18-carat jewellery.
What could weigh on prices
- A shift to 18-carat means less gold per piece of jewellery sold.
- High gold prices are pushing buyers toward lighter, lower-purity jewellery.
Country impact
| Country | Impact | Reason |
|---|---|---|
| India | Low | The change applies to Kerala, one of India's largest gold jewellery markets. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Jewellery | Positive | Uniform pricing should make 18-carat jewellery easier to sell and compare. |
Who gains, who loses
- Jewellery buyers in Kerala: They can compare 18-carat prices across stores on the same basis.
- Stores that priced 18-carat above the norm: A common method removes room to charge more than other outlets.
Other ways this could play out
- If the method works in Kerala, trade bodies in other states could copy it.
- If some outlets do not follow it, price differences could persist despite the agreement.
Price risks
- Any move in the 22-carat rate will now feed directly into the 18-carat price.
- Making charges can still vary between stores even with a common gold rate.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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