Kerala’s gold market is seeing an unusual situation – two different price rates for the same gold in the State. The reason? A split within the gold traders’ association, leading to two factions setting separate prices. This has left consumers wondering which rate to trust.
For years, the All Kerala Gold and Silver Merchants Association (A.K.G.S.M.A.) had been responsible for determining the gold price in the state. But things changed when the organisation recently split into two groups.
One faction is led by Justin Palathra as President and Bhima Group Chairman B. Govindan as Chairman. The other faction is led by Ayamu Haji, the owner of Malappuram Sahara Gold, as President. Both claim to be the legitimate A.K.G.S.M.A., adding to the confusion.
Recently, A.K.G.S.M.A. under Justin Palathra and Dr B. Govindan had merged, but this decision was not accepted by S. Abdul Nazar (Treasurer) and Surendran Koduvally (General Secretary). They then appointed their own acting President and started publishing separate gold rates.
Now, both groups are announcing different prices daily. As of today, the gold price declared by the jewellers supporting Abdul Nazar is ₹63,440 per sovereign (8 grams) – the same as yesterday. Meanwhile, the rival faction set yesterday’s price at ₹63,600 and today's at ₹63,520. That’s an ₹80 difference per sovereign.
The situation has left jewellers and consumers in a dilemma. With two different rates in the market, it is unclear which one will be followed by most traders.
Reports suggest that the dispute could even be taken to court.