Sun Oct 27 11:34:36 UTC 2024: ## Kashmir’s Wedding Season Sees Steep Drop in Jewelry Sales Due to Soaring Gold Prices
**Srinagar, Kashmir** – The traditional wedding season in Kashmir, typically a boon for local jewelry markets, is experiencing a dramatic slump this year. Sales have plummeted to just 20% of expected levels, a staggering 80% decline, due to skyrocketing gold prices.
Industry experts point to the rising cost of gold as the primary culprit. Despite recent minor price dips, gold sales have seen a consistent downturn in recent years, according to Bashir Ahmad, president of the All Kashmir Gold Dealers and Workers Association.
“Many buyers who previously intended to purchase 4 grams are now buying just 1 gram,” said Ahmad, highlighting the impact of the price surge on consumer spending. While a temporary increase in sales followed a cut in customs duty earlier this year, the effect was short-lived as prices quickly rebounded.
Local jewelers report a decline in sales of gold, silver, and other premium items, despite ongoing wedding celebrations. With 24-carat gold currently priced at Rs 80,700 per 10 grams, many customers are opting for lighter or alternative jewelry due to the high cost.
Ahmad attributes the market downturn to 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 explained.
One local merchant echoed the sentiment, stating that despite the typical wedding season rush, customers are being cautious with their purchases. The rising costs have affected the price-sensitive consumer base, resulting in reduced spending.
The slump in jewelry sales during the wedding season highlights the impact of soaring gold prices on the Kashmiri market. With consumers forced to make difficult choices, the festive demand traditionally associated with this period has been significantly dampened.
First Piper 