Gold glitters, but Kashmir jewellers struggle as record prices crush sales
Srinagar, Sep 29: The allure of gold has not dimmed for Kashmiri consumers, but for jewellers, record-high bullion prices have become a nightmare. While customers continue to view gold as a safe investment, the soaring rates have led to a steep fall in sales across Srinagar’s jewellery markets, leaving goldsmiths worried about their livelihoods.
On Monday, gold of 99.5 per cent purity surged by Rs 1,500 to touch an all-time high of Rs 1,18,900 per 10 grams in the local market, compared to Rs 1,17,400 in the previous session. In New Delhi, gold of 99.9 per cent purity climbed to Rs 1,19,500 per 10 grams, inclusive of taxes, while silver breached a psychological barrier, soaring Rs 7,000 to reach Rs 1.5 lakh per kilogram for the first time.
According to data by the All India Sarafa Association, gold prices have surged by over 51 per cent this year alone, rising from Rs 78,950 per 10 grams on December 31, 2024. Silver has registered an even sharper jump of over 67 per cent in the same period, reflecting a global rally driven by investor sentiment, safe-haven demand, and industrial consumption.
But behind these glittering numbers lies a grim reality for jewellers and artisans in Kashmir, who say that the record-breaking prices have dealt a severe blow to their businesses.
“This price spiral has broken the backbone of goldsmiths. People throng our shops to check rates or to sell old ornaments, but very few are making fresh purchases. It is difficult to survive on exchanges and minor repairs when stock investments are so high,” said Ghulam Nabi, a jeweller in Srinagar’s historic Zaina Kadal market.
Another jeweller, Mohammad Yaseen, who has run a showroom in Lal Chowk for over two decades, said footfall in shops is deceptive. “On the surface, customers are walking in, but they are not buying in the way they used to. We are seeing a drastic decline in bridal orders, which once formed the backbone of our business. The margins have shrunk, and we are forced to sit on unsold stock that keeps appreciating but is not converting into revenue.”
For artisans engaged in crafting intricate Kashmiri jewellery, such as kundan and meena work, the impact has been particularly harsh. Abdul Rashid, a goldsmith from Downtown Srinagar, said that custom orders for wedding jewellery are shrinking. “Earlier, families would give us bulk orders for heavy sets ahead of weddings. Now they are either opting for very light designs or buying ready-made pieces with less labour involvement. The culture of traditional heavy ornaments is disappearing. For craftsmen like us, this is devastating.”
On the consumer side, however, gold continues to hold symbolic and financial importance, particularly in Kashmir’s wedding-centric culture. Many families view gold as both a cultural necessity and a financial hedge.
“Yes, the prices are sky-high, but weddings cannot wait. Gold is not just jewellery for us; it is an asset. Even if I buy smaller quantities or lighter designs, I will still buy because it gives me security,” said Shazia Jan, a consumer from Hyderpora, who was purchasing ornaments for her daughter’s wedding.
Jewellers also confirm that while discretionary purchases have fallen, essential buying—especially for weddings and festive occasions—remains. Customers are adjusting their choices by opting for lighter sets, smaller chains, or rings instead of full bridal sets.
Analysts attribute the surge in gold and silver to global factors: investor concerns over a possible US government shutdown, Federal Reserve rate cuts, and geopolitical tensions. Spot gold prices internationally touched USD 3,831 per ounce, while silver surged past USD 47 an ounce, both reflecting strong safe-haven buying.
According to commodities experts, aggressive buying by central banks, massive inflows into gold exchange-traded funds, and industrial demand—especially for silver in solar panel manufacturing—are keeping the rally strong.
In Kashmir, jewellers fear that the trend, if sustained, could push small shops and traditional artisans out of business. Many smaller goldsmiths, who work with limited capital, are unable to buy fresh stock at current prices.
“The danger is not just of slow sales but of the extinction of traditional craftsmanship. If families stop commissioning traditional designs, artisans will be forced to abandon their trade. Already, many of our younger generation are switching to other professions because jewellery-making is no longer viable,” warned jeweller Ghulam Nabi.
For now, gold’s sheen remains intact for consumers but is proving a curse for jewellers. The glitter is brighter than ever, but for Kashmir’s traditional goldsmiths, it hides a deepening shadow of economic uncertainty.
