Gold demand collapses in Kashmir as prices soar to unaffordable levels

Srinagar, Oct 3: In Kashmir, where gold has long symbolised prosperity and tradition, the middle class now faces a harsh reality. In just one week, gold prices have soared by Rs 4,000 per 10 grams, leaving many families struggling to afford the precious metal. With prices hitting Rs 77,500 per 10 grams, the surge threatens not only the ongoing wedding season but also deeply rooted cultural practices.

As jewellers watch sales plummet and families grapple with financial strain, Kashmir's golden traditions hang in the balance, clouded by uncertainty and economic hardship.

The price of gold in Kashmir's bullion market has now skyrocketed to a staggering Rs 77,500 per 10 grams which was hovering around Rs 73000 a week ago, leaving many would-be buyers stunned and jewellers worried about their livelihoods.

Bashir Ahmad Rather, President of the All Kashmir Valley Gold Dealers and Workers Union, paints a grim picture of the situation. "The onslaught of soaring prices has significantly impacted demand. You can imagine in a week price of gold has increased by Rs 4000 per 10 grams, there are hardly any buyers."

"Families are shying away from purchasing gold due to its high costs. People have scaled down their gold buying even in marriages, most of the jewellers are sitting idle, there is no work," he said.

The impact on ordinary Kashmiris is palpable. Asif Ahmad, a Srinagar resident, shares his disappointment: "I had been saving for months to buy gold for my sister's wedding, but the prices have become so high that it's now completely out of reach. This is a devastating blow for a middle-class family like ours."

The tradition of exchanging gold between families during weddings, long a symbol of prosperity and blessings in Kashmiri culture, is now under threat. Ghulam Ahmad, a local goldsmith, observes, "The demand for gold, especially among upper-middle-class and middle-class families, has plummeted. Only the affluent households can afford to keep the tradition alive, leaving a substantial void in the market."

The once-bustling jewellery markets of Hari Singh High Street and Maharaj Gunj now stand eerily quiet, a testament to the far-reaching effects of this price surge. The jingling of gold bangles and the glittering of jewel-encrusted necklaces along the soundtrack of Kashmiri weddings have been muted by economic concerns.

Beyond weddings, the spike has disrupted the role of gold in wealth accumulation and cultural events, forcing many families to reconsider their investments and traditions. Historically, gold has played a pivotal role in Kashmiri families' wealth accumulation and has been an integral part of festivals and cultural events. But the recent surge has disrupted this age-old practice, prompting families to reconsider their investments.

As geopolitical tensions between Israel and Iran continue to influence global markets, Kashmir's gold buyers and sellers alike are left wondering when, if ever, the shine will return to this precious metal that has long been at the heart of their cultural and economic life.

The impact extends far beyond the realm of personal purchases. The gold industry, a significant contributor to the local economy, is facing unprecedented challenges. Jewellers report a sharp decline in foot traffic and sales, with many considering alternative business models to stay afloat.

Despite the gloomy outlook, some in the industry remain cautiously optimistic. "Gold has always been cyclical," notes veteran jeweller Mohammad Shafi. "We've seen highs and lows before, but the cultural significance of gold in Kashmir is too strong to fade away completely. We're hopeful that as global tensions ease, prices will stabilize, and customers will return."