Srinagar: United States-Venezuela crisis has delivered another blow to Kashmir’s already struggling gold trade.
Gold traders in Srinagar and other parts of the Valley said the latest global geopolitical tensions have pushed up international gold prices, the impact of which is being felt acutely at the local level.
The surge has made the precious metal unaffordable for many customers, particularly in a region where gold traditionally plays a central role in weddings and social ceremonies.
According to Bashir Ahmad Rather, president of the All Kashmir Gold Dealers & Workers Association, the price of 24-carat gold has climbed to around ₹13,800 per gram, marking a steep increase of more than ₹3,000 compared to the same period last year.
“This sudden and sharp rise in gold prices has badly affected our business. Whenever there is a conflict at the global level, gold prices shoot up, and our sales immediately fall. At present, we are doing barely 10 percent of the business we used to do earlier,” Rather said.
Traders said showrooms that were once bustling with customers are now largely empty, with many buyers either postponing purchases or opting for lighter ornaments. Some customers are also turning to artificial jewellery as a cheaper alternative, further denting sales of traditional gold items.
“The wedding season used to be our lifeline, but even that has been severely impacted last year. Families are either cutting down on gold purchases or avoiding them altogether. High prices have taken the shine out of gold,” said Bilal Ahmad Zargar, a gold dealer.
The situation is particularly grim for artisans and daily-wage workers associated with the trade, including goldsmiths and polishers, who depend entirely on regular orders. With sales plummeting, many of them are struggling to make ends meet.
“For the last one year, we haven’t been earning well. Every gold dealer procured a limited quantity, following which the artisans got less to polish or design,” said Mukhtar Khan, an artisan from Baramulla.