Soaring prices crush gold demand in Kashmir

Srinagar, Aug 18: Gold, once the centrepiece of Kashmiri weddings, is fast losing its glitter. Jewellers across the Valley say demand for jewellery has collapsed by nearly 70-80 per cent this marriage season, as soaring prices put the precious metal out of reach for middle-class families.

“Even though the marriage season has begun, we rarely get customers. Nearly 80 percent of our trade is affected,” said Bashir Ahmad Rather, president of the All Kashmir Gold Dealers and Workers Union.

“In just one year, the price of gold has increased by Rs 36,000 per 10 grams. There are hardly any buyers. Most jewellers are sitting idle.”

The slump, according to traders, has persisted for the last three years and pushed many shops into losses. Some fear they may be forced to shut down altogether if the trend continues. “Over the last two years, I have seen more than a 50 percent decline in customers. Even my regular clients rarely come now,” said Tariq Ahmad, a Srinagar jeweller.

For Kashmiri families, the crisis has struck at the heart of tradition. Weddings here are incomplete without gold ornaments, often exchanged between families as a blessing and a symbol of prosperity. But for many, those rituals have become impossible to maintain.

“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,” said Javid Ahmad, a resident of Srinagar. “This is a devastating blow for a middle-class family like ours.”

Goldsmiths confirm that only the wealthy can still afford to follow the custom, while the middle class is being forced to compromise. “The demand for gold, especially among middle-class families, has plummeted. Only affluent households can afford it now,” said Ghulam Ahmad, a local craftsman.

The price rise has been driven by international turmoil and investors rushing to gold as a safe-haven asset. “We have seen a series of wars between countries. Prices have skyrocketed and refused to stabilise for months,” Rather said. At present, 18-carat gold is selling at Rs 8,600 per gram in Kashmir, far higher than in stable years.

In the national capital, gold prices remained flat at Rs 1,00,920 per 10 grams on Monday, according to the All India Sarafa Association. The yellow metal of 99.9 per cent purity had declined by Rs 500 on Saturday, closing at the same level, while 99.5 per cent purity gold traded at Rs 1,00,500 per 10 grams (inclusive of all taxes). Bullion markets had remained shut on Friday for Independence Day.

Analysts say the market is caught in a consolidative phase as geopolitical developments continue to sway investor sentiment. “Gold traded flat to volatile as the US-Russia meeting over the weekend did not yield any clear resolution on the Moscow and Kyiv peace process, though the tone of talks was positive. Any breakthrough could pressure gold lower, while prolonged delays in resolution are likely to keep prices supported,” said Jateen Trivedi, VP Research Analyst at LKP Securities.