Gold Price Surge Dampens Kashmir's Wedding Season Market

Srinagar, Apr 12: As the wedding season in Kashmir approaches, an unprecedented lull has settled over the gold market due to continuously escalating prices over the past six months, with gold now breaching the Rs 96,000 per 10 gram mark.

In Kashmir, gold holds cultural significance as an essential component of marriage ceremonies, where bride and groom families traditionally exchange gold as a customary practice.

According to gold dealers in Srinagar's Maharaj Bazar, the city's main jewelry hub, foot traffic has decreased by nearly 60% compared to the same period last year.

Jewelry shops that would typically be bustling with activity ahead of the wedding season now see sporadic customers, most of whom leave disappointed after inquiring about prices.

"I've been in this business for over three decades, and I've never seen such a prolonged period of high prices with such little fluctuation," said Bashir Ahmad Rather, President of the All Kashmir Gold Dealers Association.

"It has absolutely killed the demand and people are not in a position to buy it. For marriages in Kashmir, gold is a must-have thing, but what is happening now is that families are reducing the quantity of gold."

Rather explained that customers who previously purchased 50-60 grams of gold for weddings are now settling for 20-30 grams, significantly impacting both their business and cultural traditions.

Ishtiyak Ahmad, a 28-year-old private sector employee preparing for his wedding next month, expressed frustration over the soaring prices. "I had saved for two years to buy gold for my wedding, but the prices have nearly doubled since I started saving. My family and I have been forced to cut down on the quantity of gold we planned to purchase."

Ahmad, who works at a local IT firm, had budgeted Rs 5 lakhs for gold jewelry, which would have purchased about 80 grams last year. "Now the same amount barely gets me 40 grams. My fiancée's family has been understanding, but it's creating tension between families who still expect traditional quantities of gold."

Several families have reported postponing weddings or drastically altering ceremonies to accommodate the financial strain caused by gold prices.

The gold crisis has begun to challenge Kashmir's deep-rooted wedding traditions. Historically, gold has symbolised prosperity and security for new couples, with specific items like bangles, necklaces, and earrings considered essential for brides.

"In our culture, a bride without proper gold jewelry faces social scrutiny," explained Nusrat. "The current situation is forcing families to either take loans or substitute with lower-quality gold or even gold-plated jewelry, which carries a social stigma."

The surge in gold prices isn't limited to Kashmir. On Friday, gold prices in the national capital jumped by Rs 6,250 to hit a record high of Rs 96,450 per 10 grams, according to the All India Sarafa Association.

Market analysts attribute this surge to strong safe-haven demand amid escalating US-China trade tensions. The precious metal hit lifetime high levels in international markets, with spot gold jumping to a fresh peak of USD 3,237.39 per ounce before settling at USD 3,222.04.

Some families are turning to family heirlooms, repurposing older jewelry rather than purchasing new pieces. Others are emphasizing that the emotional value of marriage traditions supersedes material considerations.

As Kashmir's wedding season progresses under the shadow of record gold prices, both merchants and consumers continue to hope for a correction in the market, though analysts suggest high prices may persist through 2025, forcing a longer-term reevaluation of gold's role in Kashmiri wedding customs.