01/01/2026
Gold Is Not the Problem, the System Is: Varinderjeet Singh
THE TYPEWRITER || JAMMU, JANUARY 1
Chairman of the National Sikh Front (NSF), S. Varinderjeet Singh, on Thursday raised concerns over what he described as non-transparent practices in the gold jewellery trade, stating that consumers are facing an increasing financial burden not because of gold prices alone but due to the way jewellery pricing is structured.
Addressing a press conference at the Press Club Jammu, Singh said gold in India holds cultural, social and financial significance, especially in the context of marriages, family traditions and long-term financial security. He noted that for many households, particularly women, gold is not a luxury item but an essential asset. However, he expressed concern that this trust is being strained by pricing mechanisms that are difficult for ordinary buyers to understand.
Singh explained that while fluctuations in international gold prices are often cited as the main reason for expensive jewellery, a substantial portion of the cost comes from making charges that lack clear regulation. He pointed out that these charges are frequently calculated as a percentage of the gold price rather than being linked to actual labour, craftsmanship or production costs.
Referring to local markets such as Jammu, Singh said making charges often exceed 15 per cent and tend to rise automatically with gold prices, even though the effort, time and technology involved in manufacturing jewellery do not change proportionately. He said this approach places an additional burden on consumers and raises questions about pricing fairness.
He also highlighted what he termed a market imbalance, noting that despite gold prices reaching high levels in 2025, demand for gold jewellery has declined. According to him, consumers are purchasing smaller quantities, yet the overall cost per purchase remains high due to additional charges. He observed that in a competitive market, reduced demand would normally lead to price moderation, which does not appear to be happening in this case.
Singh rejected the argument that higher making charges benefit artisans, stating that most goldsmiths continue to work on fixed wages or salaries that are not linked to gold price movements. He said this indicates that the additional costs paid by consumers are not reflected in improved earnings or working conditions for craftsmen, many of whom continue to face long working hours and job insecurity.
He further referred to wastage charges, saying that despite advancements in jewellery manufacturing techniques such as precision casting and improved recycling, consumers are still charged wastage ranging from 5 to 12 per cent. He added that in many instances these charges are not clearly explained and are combined with making charges, reducing transparency for buyers.
Cautioning consumers, Singh also spoke about promotional schemes advertising zero making charges, describing them as potentially misleading. He said such offers may recover costs through higher gold rates, increased wastage, lower buy-back values or additional tax implications, which buyers may not immediately notice.
Raising broader regulatory concerns, Singh said a lack of transparency in pricing affects consumer rights and fair market practices. He urged authorities to review existing mechanisms governing the jewellery trade and ensure greater accountability.
Placing his suggestions before the government, Singh called for reasonable limits on making charges for standard jewellery, a shift away from percentage-based calculations, compulsory itemised billing, clearer linkage between making charges and artisan wages, assured minimum wages for goldsmiths with direct payments, and closer scrutiny of promotional claims.
Concluding his address, Singh said the NSF’s position was aimed at reform rather than opposition to the jewellery industry. He stated that while fair profit is necessary for any business, systems should ensure transparency and balance so that consumers are not disproportionately burdened. According to him, when labour costs remain stable, technology improves and demand weakens, yet consumer expenses continue to rise, it becomes evident that the challenge lies in the system rather than in gold itself.