Soaring Gold Prices Bring Kashmir's Jeweler Market to Near Standstill

Bashir Ahmad, President of the All Kashmir Gold Dealers and Workers Association said that the market was witnessing a steep 90% drop in business over the past week.

Kashmir’s jeweler market has come to a near standstill as soaring gold prices are leading to a drastic decline in sales, leaving traders worried.

According to Bashir Ahmad, President of the All Kashmir Gold Dealers and Workers Association, the market has witnessed a steep 90% drop in business over the past week.

“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 stabilize. Customers are holding back, anticipating a drop in rates, but there is no certainty about when that might happen,” Ahmad said.

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

Ahmad said that the Sarafa market in the region has been severely impacted, with business activity dwindling 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.

When 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, 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 jewelers, 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,” jewelers said.