About the Industry

Significance

Information about Gold

Moulding Process

Artificial Jewellery

Gemstones

Main markets

Associations

Recommendations

Industry operating as a Cottage industry

Structure – mostly family owned

businesses and Karkhanas

Karachi is the hub

Light Weight Jewellery- Italian preferred

Heavy Jewellery- Pakistani and Indian

preferred

Employment and GDP contribution:

There’s been no consensus conducted for this sector but by a rough estimate we can make a guess that if alone in saddar there are 10,000 workshops which employ minimum 5-6 workers each, it makes up a rough total of around a lakh workers in Karkhana’s alone in Saddar, whereas the 70-80 jewelry showrooms in Saddar employ minimum 7-8 workers per shop which makes up a rough total of around 700 employs. So the total employment level and GDP contribution must be a handsome figure.

PURPOSES

Investments

Traditions and values

CONSUMPTION

Pakistan is the 8th largest consumer in

the world

There are four types of precious gold metals:

Yellow Gold

Palladium Gold

Platinum Gold

White Gold

Ivory (Hathi dant) is considered the gold of Africa; it is not of equal worth as gold but is considered a precious jewelry ornament and is usually bought for souvenir or collection purposes.

Yellow Gold:

Yellow Gold is the most used type of

gold over the world. It has traditional

importance over the sub-continent

region.

Platinum Gold:

Platinum Gold is the most expensive gold

type over the world. It is used in planes. It

is found in South Africa.

Raw Material:

The purest form of gold is 24 karat. It is the softest form Gold.

24 karat gold is available in the form of Swiss gold bars (made

in Switzerland), mainly used for investment, saving and

business purposes.

There are many other form of gold available e.g. 14 k, 16 k, 18

k, 21 k, 22 k etc. depending on the percentage of impurities

added.

Silver and copper are added as Impurities to Gold.

Impurities are added to gold to make it hard solid to give it different designs.

Rate of Gold

The rate of gold is fluctuated by the fluctuations in the prices of dollar and oil.

Today’s Gold Price:

10 gm. (22 k) = Rs.42852/-

Standard Measurement Units of Gold

A Gold Analyst is called “sonar”

1 Ratti = 0.1215 mg.

1 Masha (gm.) = 1000 mg.

1 Tola = 96 Ratti = 11.664 gm.

The international key players in the

gambling of gold reserves and

determination of gold prices are US and

China.

Machine designs – Low Labor Handmade designs – Labor Intensive

Popular Gold Designs Over Sub-Continent Region

Asian

European

Dubai

Indian

Dehlivi

Culcuttai

Madrasi Hyderabadi

Jaipur

Katak

Katak casting

Sada kari

Meena kari

Jarao

Thapa – Okkas

Dye

Polki

Diamond Polki

International competition in the market

ARY

Our Edge in International Market

Bangles

Stone work (Jarao)

•Designing

Step 1

•Creating Prototype

Step 2•Casting

Step 3

•Metal Insertion

Step 4•Stone Setting

Step 5

•Bench Work

Step 6

PROCESS

The history to the trend of artificial jewelry in Pakistan dates back to

2001, when the prices of gold reached record breaking heights due

to increasing gold demand and currency devaluation all over the

world.

Due to the above stated facts gold rates and inflation reached to

such heights that it became out of the purchasing power of the

Pakistani masses. The goldsmiths went out of business. That’s when

the gold workers switched to imitation jewelry. Now the masses were

out of purchasing power and they started getting gold like designs,

quality and fineness in artificial jewelry so the trend of imitation

jewelry was introduced.

This trend has been at its peak during the period from 2001 to 2012.

At recent the markets have been seeing low prices of gold and in

return a good turnover has been recorded in gold purchases. The

increase in turnover was much welcomed by the goldsmiths and

jewelers. Many of them mentioned that the sector grows when the

gold prices are down and they pray that may the gold prices fall

and maintain low.

US

31%

Hong

Kong

11%German

y

8%

U.A.E

16%

United

Kingdom

11%

Thailand

7%Other

16%

Main Importers of Gems from Pakistan

(2010-11)

U.A.E.

63%

UK

.925%

US

.922%

Canada

.459%

German

y

.037%

Other

35%

Major Importers of Jewellery from Pakistan(2010-11)

In view of enormous rise in gold

prices, artificial jewellery markets in

Pakistan are witnessing a boom. Artificial

jewellery is becoming more attractive for

women, as it is inexpensive with variety

of designs and colours. A significant drop

in the sales has been observed in the

yellow metal for the past few years.

A shopkeeper in Gulf Market in

Islamabad said, “The core factor behind

the rise of artificial jewellery is reduction

in the purchasing-power of the

customers, who cannot afford to buy

gold.” It is cheap, safe and in

fashion, and women feel secure to wear

artificial jewellery instead of gold

ornaments, he added.

Crafting of artificial jewellery has

become an industry as thousands of

people are earning their livelihood from

this sector. Increase in the demand for

artificial jewellery has also resulted in the

rise in its prices. According to

traders, artificial sets are even being

bought for wedding purposes. Heavy

bridal sets are very much in demand.

A normal artificial set can be made of

silver, 18 carat gold or of brass, copper, 2

per cent silver, semi-precious and

artificial stones. One heavy bridal set

usually costs Rs20,000-35,000 on

average, said Salman Sher, a gold

dealer at Gulf Market.

Dealers and traders import artificial jewellery from India and China. The material coming from China is cheaper because of comparatively less transportation cost.

“We do not import jewellery directly from India. Rather we do it via Dubai, which increases transportation cost,” said an artificial jewellery dealer.

“A set that previously cost Rs250 in retail, now costs us Rs350 in wholesale and we have to sell it for Rs450,” he added.

Gemstones in Pakistan

What is Pakistan’s edge in terms of the gems found?

•Emeralds excavated from Swat Valley rank amongst the best

in the world. Their colour, with a pure verdant hue and a high

degree of transparency, is comparable to high quality

Columbian emeralds.

•Topaz from Katlang is believed to be equivalent in quality to

those

found in Brazil. Peridots coming from Sput Kohistan are

considered

to be the best in the international market.

•The most extensive ruby deposits are located in Hunza

Valley. Ruby produced from here ranges in colour from light

to deep red. Other

major potential areas of ruby are located at Azad Jammu &

Kashmir, Hazara and Dir.

•World class crystals of minerals like bastnaesite, brookite,

xenotine and other rare minerals, make Pakistan unique in

the international markets.

Pakistan currently has 146 geologists, 18 geophysicists, 25 drilling engineers and 7 photogrammetrists

among specialists for geological surveys. Due to the shortage of such specialists a vast area of Pakistan

still has to be surveyed for precious minerals.

Pakistan has untapped reserves of some of the

most rarest and valuable stones in the world.

Like the deep green emerald found in Swat

valley and pink Topaz found in Khyber

Pakhtunkhwa (Mardan District). Due to their

rarity these stones have a high demand

internationally.

Export Promotion Bureau is

undertaking the “Dazzle

Park” project in Karachi. The

project which had its

foundation stone laid in

March 2013 is said to boost

import and export logistics

and minimize costs. Since it

is situated near the Jinnah

International Airport with

opportunities for

midstream, upstream and

downstream industries. It

aims to process precious

and semi-precious stones

and enables export of these

to internationally certified

standards in either cut or

polished form or studded in

jewelry and gold jewelry

making.

Even though Pakistan’s mineral sector contributes less

than 1 % to the GDP but now production of sixty large

to medium scale commodities had started. At

independence only six mineral commodities were

mined extensively

(salt, coal, sulphur, gypsum, limestone and chromite)

The Province of Balochistan and the Gem IndustryVast natural reserves found in Khyber Pakhtoonkhwa and

Balochistan can bring about economic well being in terrorist prone areas. And Pakistan has a whole, can

benefit from a more positive image. Mineral sector contributes less than 1 % to the GDP there fore the

potential for growth is enormous.

These areas due to the ragged terrain and lack of resources for labor and mining Furthermore it is negatively

affected by the growing ethnic and sectarian violence.

Problems faced :

• In Pakistan, gems used in exportable studded jewellery are not counted in the export of gems

•Lack of mining and financing resources in areas like Balochistan

•No representation in policymaking circles according to a Trade Development Authority of Pakistan (TDAP official

•Security Issue.

•Disorganization

•No powerful lobby to gain concessions according to a TDAP official

•The rugged terrain of Balochistan

History

Hyderabad Deccan – Golconda (diamond found)

South Africa – 5 mines – biggest in the world -DeBeers (diamond cutting and finishing invented)

Belgium is the finest cutter of diamond.

Koh-I-Noor is the most expensive diamond in the world.

Kolonien – Queen of England’s diamond is the biggest diamond in the world.

Diamond’s worth is found by four basic

factors:

Color

Clarity

Cut

Karat

Some skins are sensitive to impurities and eventually to hard gold. These skins appear to have rashes when are exposed to hard or impure gold. 24 K Gold seems to be best suitable for such skin cases.

Gold is used in the treatments of many diseases including pigmentation and healing of deep cut wounds.

Gold is also used in many medicines and vitamin supplements.

Sarafa

Saddar

Gulf

Tariq road

Haidery

Zamzama

There’s a separate association for every cluster of markets.

In Karachi there’s a separate jeweler’s association for Tariq road, Saddar and Gulf.

There’s a jeweler’s association for Lalukhet and Haidery.

The All Pakistan Gem Merchant and Jeweler’s Association’s

Head Office is located in Saddar, Karachi presided by

Raesuddin Sheikh.

The association doesn’t practically perform any strategic or

primary role in the sector development. It mainly deals in

resolving internal conflicts between different jewelers in the

market.

The association is provided with funds from the government

for organizing shows to attract local and foreign customers.

But the association only organizes a general and low level

show unable to interest voluminous visitors.

Insurance to pressurize govt. to provide security

Universal unit system

Separate shows so customers won’t be distracted

Duty on import export should be subsidized like Dubai has 1% duty

Utilize media industry

New Machinery

Training to workers

THANK YOU!!!