Kashmir's Jewellery Market Brought to Near Standstill as Gold Prices Soar

The soaring gold prices have brought the jewellery market in the Kashmir region to a near standstill, with jewellers reporting a drastic decline in sales.

Kashmir's jewellery market has come to a near standstill as soaring gold prices have drastically reduced sales by 90%, according to jewellers in the region, reports Greater Kashmir.

Speaking on the current situation, Bashir Ahmad, President of the All Kashmir Gold Dealers and Workers Association, said, “The market is down. There is no sign of work anywhere. For the past week, sales have plummeted and traders are left waiting for prices to stabilise. Customers are holding back, anticipating a drop in rates, but there is no certainty about when that might happen.”

He said that currently the price of 24-carat gold is Rs 86,000 per 10 grams, a sharp increase that has further discouraged buyers. Other variants like 22-carat and 18-carat gold are also witnessing a steep rise in prices.

Ahmad highlighted the severe impact on the Sarafa market in the region, stating that business activity has dwindled to less than 10% of its usual volume. “Shops that once had a steady flow of customers now see just a handful. There is no adjustment in coin rates either, as gold prices rise, so do coin prices,” he added.

Asked about future trends, Ahmad refrained from making predictions, stating that the market volatility made it difficult to foresee any changes. “I can’t say anything about it. The situation remains uncertain,” he said.

The sharp surge in gold prices has led to concerns among traders and customers alike, with many waiting for a correction before making any purchases. The uncertainty in the market continues to loom large, impacting the livelihoods of those dependent on the gold trade in the region.

According to the jewellers, the soaring gold prices are pushing the potential customers to reconsider their plans. “Gold has always been an essential part of Kashmiri weddings, but the current prices are pushing people to rethink about the yellow metal purchase,” jewellers said.