Gold sales plummet in Kashmir as prices breach ` 1 lakh mark
Srinagar, June 14: Kashmir's centuries-old love affair with gold is facing its severest test as soaring prices breach the psychological barrier of Rs 1 lakh per 10 grams, delivering a crushing blow to the region's wedding season and deeply embedded cultural traditions.
The precious metal, which has long symbolised prosperity and formed the backbone of Kashmiri wedding ceremonies, has become increasingly unaffordable for middle-class families. Local gold prices have skyrocketed to Rs 1.01 lakh per 10 grams from Rs 73,000 in October 2024 – a staggering increase that has left buyers shell-shocked and jewellers staring at empty showrooms.
"The onslaught of soaring prices has significantly impacted demand," said Bashir Ahmad Rather, President of the All Kashmir Valley Gold Dealers and Workers Union. "You can imagine – in a year, the price of gold has increased by Rs 36,000 per 10 grams. There are hardly any buyers."
The timing couldn't be worse for Kashmiri families. The ongoing wedding season, traditionally a period of high gold purchases, has seen unprecedented disruption as families are forced to scale down their gold buying or abandon it altogether.
Javid Ahmad, a Srinagar resident, captures the anguish of middle-class families: "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 impact extends far beyond economics. The age-old tradition of exchanging gold between families during weddings – a practice that symbolizes prosperity and blessings in Kashmiri culture – now hangs in the balance.
"The demand for gold, especially among upper-middle-class and middle-class families, has plummeted," observed Ghulam Ahmad, a local goldsmith. "Only the affluent households can afford to keep the tradition alive, leaving a substantial void in the market."
Jewellers across the valley report unprecedented quiet in their shops. "Most of the jewellers are sitting idle, there is no work," Rather added, highlighting the ripple effect on livelihoods dependent on the gold trade.
The Kashmir crisis mirrors a national trend. Gold prices in India's capital markets have surged for the third consecutive day, hitting near-record highs of Rs 1,01,540 per 10 grams amid heightened geopolitical tensions following Israel's military strike on Iran.
According to the All India Sarafa Association, gold of 99.5% purity rallied to Rs 1,00,700 per 10 grams, while silver prices jumped to an all-time high of Rs 1,08,100 per kg.
"Gold prices touched a new high and scaled past the Rs 1 lakh mark per 10 grams while in international markets, the bullion soared past $3,440 per ounce as investors flocked to safe-haven assets amid mounting global instability," explained Rahul Kalantri, Vice President of Commodities at Mehta Equities.
As Kashmir grapples with this golden crisis, families are being forced to reimagine wedding celebrations that have remained unchanged for generations. The question now is whether this price surge will permanently alter Kashmir's relationship with gold, or if falling prices might restore the metal's place in the valley's cultural fabric.
For now, Kashmir's golden traditions remain clouded by uncertainty, leaving families to navigate between economic reality and cultural expectations in one of the region's most challenging periods for precious metal buyers.
