SRINAGAR: The surging cost of gold is posing challenges for dealers in Kashmir, with the demand for this precious metal plummeting by nearly 95 per cent in the region.
Gold has witnessed unprecedented price hikes in recent months, reaching levels once considered unimaginable.
The price of 24-carat gold rose by Rs 170 in early trade on Tuesday, with ten grams of the precious metal selling at Rs 63,270.
The ripple effect of this surge has now reached Kashmir, where dealers are reporting a significant drop in demand for the yellow metal.
Local gold dealers, integral to Kashmir’s vibrant economy, are feeling the impact as customers turn away due to the exorbitant prices.
“There is a fall of almost 95 per cent in demand for gold currently. A 24-carat gold sells at Rs 6300 per gram in Kashmir, which is almost Rs 200 less than the cost of per gram of gold in the country. Still, we don’t get customers now,” said Bashir Ahmad Rather, the President of the All Kashmir Valley Gold Dealers and Workers Union.
Rather highlighted that the instability in gold prices has discouraged people from investing in gold and silver.
“We have been witnessing that the gold prices have not been stable for a couple of weeks. It had led to a recession among gold dealers countrywide. We would often make good sales even during winter, which is the off-season for gold dealers in Kashmir. This winter, we are facing immense losses,” he said.
The soaring prices have led to a sharp decline in the purchasing power of consumers, making it difficult for many to afford gold for traditional occasions such as engagements and weddings. The economic downturn has created a ripple effect across various sectors, impacting the livelihoods of those dependent on the gold industry.
“Kashmiris mostly prefer to buy gold when its rates come down. For the last few months, the gold rates have been touching the sky. As such, people have deferred functions like engagements, which mostly happen during winter,” said Noor Mohammad Zargar, a gold dealer. (KNO)
