By Shanker Man Singh  

In urban areas including Kathmandu, gold shops are growing faster than salt or grocery shops. Despite low personal profits, the development of the sector is remarkable. The main reason for this is the change in the living standards and lifestyle of Nepalis, migration of people from villages to cities, remittances, etc.   Even if we talk about Kathmandu, about four decades ago, there was only one gold jewellery shop at the gate of Bishal Bazaar and a limited number of other unorganized shops in Kathmandu, Lalitpur and Bhaktapur.  At that time, when India did not adopt an open economy, the sale of foreign goods in Nepal was mainly done on New Road. Now, in the same place, about 80 percent of the shops are gold or jewelry shops.

In a way, the possibility of New Road becoming a specialized place for gold and jewelry has increased. In addition, gold trading is also seen in other urban areas of the country. Gold, the dominant metal in Nepali society, accounts for about 75 percent of the Nepali market. A small amount of gold can be expanded to make large ornaments, and in Hindu society, gold has not diminished in importance as it is an essential part of a person's rituals from birth to death. Even as soon as a child is born, gold idols were worshipped as garlands, necklaces, etc. There can be many reasons for the increase in gold and jewelry shops in Kathmandu, Nepal.

The price of gold has been continuously rising, making it an attractive business for traders. As the price of gold has increased, the number of shops has also increased as more people are interested in buying and selling gold.

Gold has a deep cultural and emotional significance in Nepal. It is an essential part of many ceremonies, especially weddings and festivals. This cultural significance increases the demand for gold and jewelry, which encourages more shops to open.

An overview of Nepal's gold and jewellery market reveals its growth, trends, and investment opportunities. The growth is partly due to changing lifestyles, urbanization, and remittances.

The enduring appeal and value of gold are emphasized, while the growing popularity of diamond jewellery cannot be denied. The demand for handcrafted jewellery outside Nepal and the lack of internationally recognised certification are also highlighted.

Lack of implementation of clear government policies and regulations: The lack of well-defined policies and regulations regarding production and marketing creates uncertainty for businesses.

Lack of implementation of clear government policies and regulations: The lack of well-defined policies and regulations regarding production and marketing creates uncertainty for businesses. The government inspects and levies fees on shops without proper policies, which leaves businesses unclear about their operating model.

The shortage of raw materials hampers the growth of the industry. Limited awareness among sellers and buyers has posed a challenge.

Safety risks are a concern for the industry. The industry suffers from a shortage of skilled labor. A significant portion (over 80%) of skilled workers come from India and other countries.

        The inability to produce skilled labor within the country can lead to a decline in the quality of jewelry. import restrictions.

        The government’s restrictions on gold imports, such as allowing only 15 kg of gold per day, hamper the industry’s ability to meet demand.

High customs duties on finished jewelry as compared to raw materials discourage their import. 

Nepal’s gold market is experiencing a growth rate of 15-20 percent per annum.

The increasing number of gold shops indicates market expansion, which indicates a bright future for the Nepali jewelry market.

Consumer preferences are shifting towards the designer and branded jewelry, as well as modern, semi-modern, and antique items.

Nepali handcrafted jewelry is in high demand in the international market, especially in Europe and the US. Nepali gemstones are also used in silver jewelry exported to Europe and the US. Some of the reasons to buy gold jewelry in Nepal are: timeless beauty, value retention, durability, versatility, hypoallergenic nature, customization options, cultural significance, sentimental value, eco-friendliness, status and elegance, and wide availability.

        Gold jewelry is prized for its enduring beauty, investment potential, and versatility. Caratrio Jewels is a handmade jewelry store that specializes in unique and affordable pieces.

        High-quality materials and craftsmanship are used to create jewelry that is both beautiful and durable. Is buying gold jewelry a good investment?

        Most traders/investors think that investing in gold is not a good option. What Warren Buffett says about gold: Being born into a middle-class family and hearing his mother say that the price of gold has increased has a slightly different perspective on investing in gold.

        Gold has been used as a currency in this world for centuries. It is a resource that is constantly in the market and is used to buy or exchange goods. Moreover, it is treated as a symbol of royalty.

        Everyone should invest a small portion of their portfolio in gold. There are various reasons to believe this, but here are a few. In the past- nowadays, every country has a different currency.

        However, gold is one such option that can be easily used to trade in any country. In bad times, having gold in your pocket can be a great backup, in case the currency of the country is depreciating or is not acceptable elsewhere. Second- Stocks, bonds, mutual funds, etc. may not be useful in other countries and may also crash or close in bad situations like a world war.

        However, it can be believed that the value of gold will not drop to zero in such a situation. Third, it can be a good investment to pass on to the next generation who may not have the luxury of having a lot of gold.         Further, although gold has not given huge returns like stocks or real estate, it can help diversify a portfolio and reduce risks in adverse economic conditions.

        Warren Buffett is of the opinion that investing a small percentage in gold is a good option overall. The Federation of Nepal Gold and Silver Merchants has been doing constructive work to promote both internal and external businesses and it can be believed that it will continue in the future.

        In addition, the Federation should promote the business nationwide and also pay attention to the purity of gold and silver products.

        It is necessary and imperative to emphasize the development, diversification and export of gold and silver products made in Nepal, which are Nepal's export products as handicrafts and are the backbone of foreign exchange earnings.

        It is not an exaggeration to say that handicrafts are Nepal's export products and are the backbone of foreign exchange earnings. It is well known that the choice of items purchased by tourists visiting Nepal is Nepali handicrafts.

        The gold and silver business has expanded to all parts of the country. It also seems that the Federation should play a role in promoting businesses in rural and remote areas.

        The domestic jewellery market has come a long way in the world and in Nepal itself. The preference of customers is gradually shifting towards designer and branded jewellery which requires a lot of gold for classic designs. Until a few years ago, classical jewellery “classic” jewellery designs were the market leader but nowadays people are more interested in modern, semi-modern and antique items.

Nowadays, people prefer lightweight and different jewelry designs over large and classical jewelry designs, say officials of the Federation of Nepal Gold and Silver Dealers (FENEGOSIDA).

        The appeal of jewelry, which was once considered a symbol of prestige and prosperity, has not diminished, but it has become an integral part of our society.

        Although the trend of jewelry has changed, it still represents the prosperity of the family. Now, with people buying ready-made items in the market, the custom of placing orders has almost disappeared. Jewelry is a tradition for Nepalis.

        The way people wear jewelry has changed over time, but those who believe that the appeal has not changed and will never change. The change in the style of buying jewelry by Nepalis is evident in the fact that the number of branded and designer jewelry stores in the Kathmandu Valley has increased manifold in the last two to three years, as evidenced by the change in consumer preferences.

        In short, the diamond market in Nepal is gradually growing, presenting high opportunities for traders. A few decades ago, diamonds accounted for less than 10 percent of the total jewelry trade, but some businessmen believe that people now prefer diamond jewelry over heavy and classic gold jewelry.

        Apart from gold and silver, Nepali handicraft jewelry is also in high demand in the international market. Most of the gems from Nepal are used for silver jewelry exported to Europe and America.

        Handicraft jewelry is very famous and loved by Europeans and Americans. They are exported in various designs of earrings, rings, necklaces, pendants, bracelets, brooches, bangles and various items set with precious stones.

        Diamond jewelry is more popular and in demand in Nepal than other gemstones. Jewelry Certification   Overall, jewelry certification plays an important role in the business. There are labs around the world that identify and grade gems, but it is not yet established in Nepal.

        These certificates are internationally recognized and respected and are known for their accuracy, technology, research and other important factors in grading.       Market Prospects Nepal's jewelry market is currently providing employment opportunities to about 50,000 to 60,000 people. Nepal's jewelry market has a very bright future.

        The market growth can be seen as the number of gold shops increases. Although the profits of individual shops have decreased due to competition, the overall market seems to be growing.

        The country is not able to produce skilled manpower and this can cause a big problem in the future. It is important to pay attention to the possibility of deterioration in the quality of jewelry due to this.