Gold Sales Plummet As Prices Soar This Festive Season

2024-10-27 02:06:30

(MENAFN- Kashmir Observer) Srinagar- The festive wedding season in Kashmir, traditionally running from August to November, usually brings a surge in local markets for jewellery, gifts and other ceremonial items. This year, however, sales are down sharply, with reports indicating sales are reaching only 20 percent of expected levels-a dramatic 80 percent decline. Industry experts say the reason for this slump is largely due to soaring gold prices, which have tightened consumer spending.

Bashir Ahmad, president of the All Kashmir Gold Dealers and Workers Association, said that despite minor price drops, gold sales have seen a major downturn across Kashmir.“With gold prices so high, many buyers who previously intended to purchase 4 grams are now buying just 1 gram,” he said.

Ahmad said that gold sales have been declining consistently over the past several years, and this year's wedding season is no exception.“While the marriage season from August to November has traditionally driven strong sales, the current high prices are deterring purchases,” he said. He added that while earlier in the year there was a temporary uptick in sales following a cut in customs duty on gold items, this momentum was short-lived as prices soon surged again.

Kashmir's jewellers said that despite ongoing wedding celebrations, sales of gold, silver and other premium items have declined compared to previous years. With 24-carat gold currently priced at Rs 80,700 per 10 grams, many customers are reluctant to make large purchases and are opting for lighter or alternative jewellery due to the high costs.

Bashir said that market expectations for steady festive demand had been dampened by fluctuating international factors, including geopolitical tensions in regions like Ukraine and the Middle East.“External factors such as recent inflation and supply chain disruptions are impacting local prices, with high-value commodities like jewellery now becoming more of a luxury than a necessity,” he added.

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One local merchant said,“Despite the usual wedding season rush, customers are being cautious with their purchases. The rising costs have affected the price-sensitive consumer base, which has led to reduced spending.”

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