Why you should invest in Philippine gold Industry
The jewellery industry in the global market is held by jewellers from America, Hong Kong and Europe. But based on profit charts, local industries shine brighter than international makers among Filipino buyers, making the local jewellery industry a potential driver of growth for the country’s economy.
These observations made by daily paper The Manila Bulletin suggest that government must take steps to boost the local jewellery industry. Here are some key facts that make the local jewellery industry a potential driver of income for Filipino entrepreneurs willing to invest:
- Philippine gold deposits are said to be the 5th largest in the world
- Provinces rich in gold are found all over the country: Benguet, Isabela, Masbate, Southern Leyte, Zamboanga, Agusan, Misamis Oriental, Surigao, Davao Oriental, and South Cotabato
- The country is rich in the following gemstones: opal, jasper, quartz, textite jade, garnet, jadeite, and schist
- Small and medium enterprises comprise 50% of the sector
- Domestic market contributes 90% of the industry’s profits
- Stronger purchasing power of Filipinos is driving demand for jewellery in the local market
- Gold prices have decreased by 10% since January, boosting sales
Around 250 firms are currently engaged in jewellery-making in the country. Meycauayan in Bulacan is considered the centre of the industry with 10,000 jewellery shops employing 100,000 workers, making it a major livelihood for the town.
Pre-Hispanic Chinese settlers taught Bulacan’s earliest jewellery artisans the craft. Today’s generation of jewellery-makers now also use technology and modern equipment to lower the costs of labour and materials, leading to more efficient processes.
At present the Confederation of Philippine Jewelers Inc (CPJI), a group formed by several key associations in the industry, is seeking to boost the market with the help of the government. They are asking for a review of Republic Act 8502, the Jewelry Industry Development Act, to make the government simplify:
- accreditation of jewellery-makers
- export and import policies
- accessibility to gold and silver
The CPJI is also asking the government to fully ‘legitimise’ the sector by assisting small to medium scale enterprises and creating more jobs. Incentives from the government can further hasten the growth and competitiveness of the industry.