Srinagar, Mar 10: All Kashmir Gold Jewelers and Workers Association (AKGJ&WA) have decided to stop selling and buying gold coins in Kashmir ‘in view of the high price fluctuations and consumer anxiety about high prices in Kashmir compared to national and global markets’.
This developed comes in view of the growing public concerns in Kashmir for unchanged gold prices while national and global prices have gone down by 22% in recent weeks.
After a meeting of All Kashmir Gold Jewelers and Workers Association (AKGJ&WA) held in Srinagar, Bashir Ahmad, President of the Association said that the association members had decided to stop selling and buying of the gold coins due to ‘skyrocketing prices.’ The Association is demanding introduction of 24-carat gold products in Kashmir and is intending to meet the relevant government representatives in this regard.
As gold prices fall to almost 11-month low to Rs 44,600 per 10 gramme, consumers in Jammu & Kashmir are confused about the market dynamics and the reasons for largely steady gold prices here.
As the wedding season is about to begin in Kashmir region, families are rejoicing about the fall, while those who had invested in gold assets in recent months are confused about the situation.
“This is a highly confusing situation. There needs to be a clarity. If the same 22-carat system is in vogue in rest of the country, why is there a cost differential between prices in Kashmir and rest of the country. Moreover, Edward gold coins are mainly 24-carat, 22-carat and less are mainly used for jewelry”, Mehak Shah, a consumer said.
Leading gold jewelry association members told Ziraat Times that recent high fall in prices has created difficulties both for the jewelry makers and the consumers.
“We usually stock gold assets in anticipation of the wedding season sales. Such fall in prices hit us badly. While those who buy at lower prices stand to benefit, there are thousands of families who plan a selloff to fund their other needs, face difficulties”, a Srinagar-based jewelry maker told Ziraat Times.
From the highs of Rs 57,000 per 10 gramme in August last year, the yellow metal price has come down by 22 per cent or Rs 12,400 per 10 gramme. Gold prices have eased due to an improving global economic outlook, mainly because US and global bond yields have continued to rise, and investors have dumped gold assets as an option of long term investment.
Better than expected jobs data led the benchmark US 10-year bond yield to soar as high as 1.62 per cent last week, the highest in 12 months.
This uncertain situation is leaving potential buyers in J&K confused whether it is really the right time to buy gold or not.
“Buyers are gasping for answers. The steady prices in the market make them wonder whybthere are no changes in J&K following the countrywide and global changes. Moreover, they have no idea of the medium term and long term outlook for gold prices. In Kashmir jewelry is a major component of wedding ceremonies and a major investment option for people. But there is overall confusion”, Bashir Ahmed, a gold trader said.