KOCHI: Gold traded at two sets of prices in the state yesterday. The gold prices are determined by the All Kerala Gold and Silver Merchants Association (AKGSMA) headed by B Govindan (Chairman, Bhima). Gold is traded in Kerala at the price fixed by them. For ages merchants in Kerala are selling gold at the price set by AKGSMA.

Yesterday they had a fixed gold price at Rs 4,730 per gram. But another organisation of gold traders, headed by Justin Palathra, who claims to be the ‘real AKGSMA’ fixed a different price for gold at 4,650 per gram.

Malabar group chairman, MP Ahammed said that those who sell gold legally after paying a heavy fee as import duty and tax to the government cannot sell gold at such a low price. “Only those who procure bullion from unauthorised sources could only sell it at a low price,” he added.

Other office-bearers of AKGSMA also demanded to know from where do the merchants who sell gold at a lower price, collect bullion. Only a section of gold merchants from Malappuram and Thrissur sell gold at a lower price of Rs 4650 per gram.

Gold price determination

Gold price is determined in Kerala on the basis of rupee’s value and also on gold prices in Mumbai and London’s market. Yesterday morning, the gold price in London was $ 1940.30, rupees value was Rs 73.87 at this time, thus gold bullion price in India for 24 carrots of gold becomes Rs 5,385. When it is converted to 22 carrots, margin price becomes Rs 4,730. In Tamil Nadu, Mumbai and Karnataka gold is sold at a higher price point—Rs

4,900. The real case being in this way, if certain sellers in Kerala are selling at a lower price then a thorough probe should be made about their source of gold, said AKGSMA. At the same time, Justin Palathara said that his organisation have the right to determine gold prices.

Set back to customers

In this pandemic situation, people sell out their old ornaments other than gold finance. when the gold is traded at a low price, people would not get a reasonable price. M P Ahammed said this act is equal to betraying both public and the government.