Mubashir Alam Wani
Srinagar, Apr 29: With the wedding season beginning in Kashmir—traditionally a peak period for gold sales, jewellers across the Valley are witnessing an unexpected slump in business, as soaring and unstable gold prices keep buyers away.
Traders said that the demand for gold has plummeted to less than 10 per cent of usual levels, with customers delaying purchases in the hope of a price correction.
“The market is practically stagnant,” said Bashir Ahmad, President of the All Kashmir Gold Dealers and Workers Association. “Even though it’s marriage season, we aren’t seeing the kind of rush we used to. People are sitting at home, and shopkeepers are idle.”
Describing rates as high, Ahmad said that gold prices currently stand approximately at Rs 8,200 per gram for 18-carat and Rs 9,650 per gram for 24-carat gold rates. However, he believes the issue is not just the high cost but the unpredictability of the market.
“In Kashmir, there’s an old saying that when gold starts falling, people wait for it to fall further,” Ahmad said. “This wait-and-watch approach hurts our business. If the price stabilises, even at a high point, people may start buying again. But as long as the price keeps fluctuating, it creates hesitation.”
According to traders, customers are postponing purchases, hoping that the rates will eventually come down. Traders said that this approach has severely impacted business in a sector that depends heavily on seasonal momentum, especially during weddings.
Stressing the urgent need for market stability, Ahmad said, “If gold prices stay constant, whether high or low, for two to three months, we can plan ahead, and buyers will return. But in this current climate of volatility, even hopeful buyers are holding back.”
Ahmad also pointed to global economic uncertainties and currency fluctuations as factors driving the erratic gold prices, leaving local traders in a precarious position.
“As traders, we don’t control the global markets,” Ahmad added. “All we can do is pray that the rates come down so that we can get back to work.”
Traders said that as May was approaching, typically another high point for weddings in Kashmir, they were hoping that either the prices will settle or drop enough to revive consumer confidence and bring much-needed relief to the sector.
