Srinagar: The escalating cost of gold is giving a tough time to the dealers in Kashmir who said the demand for this yellow metal has fallen by almost 95 percent in Kashmir.
Gold has seen unprecedented price hikes in recent months, reaching once unimaginable levels. The price of 24-carat gold rose 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 staggering drop in demand for the yellow metal.
Local gold dealers, who have long been a staple in Kashmir’s vibrant economy, are feeling the pinch as customers turn away from gold due to its exorbitant prices.
“There is a fall of almost 95 percent in the 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 said the instability in the gold prices has compelled people not to invest 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 winters which is 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, with many finding it difficult 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 do happen during winter,” said Noor Mohammad Zargar, a gold dealer.(KNO)
