Gold trade has stalled in Jaipur (ETV Bharat)
Jaipur: Ever since Prime Minister Narendra Modi appealed to the people in May to abstain from buying gold for the next one year, gold trading has declined significantly in Jaipur, impacting traders along with thousands of artisans and others associated with the industry, as customers are now purchasing silver instead.
When the ETV Bharat team visited Jaipur’s Jhotwara area, which has developed into a major jewellery manufacturing hub, traders and artisans revealed that the demand for gold jewelry has declined by 50-80 per cent following the Prime Minister’s appeal.
One of the businessmen, Manish Soni said, “The sale of gold jewellery has declined significantly, and customers are now turning to silver as an alternative.” According to him, while previously there were new orders being placed daily, work has now virtually come to a standstill making it difficult to give work to the employees.
Similarly, Radheshyam Soni disclosed that his business has shrunk by approximately 40 per cent. He claimed, “The constant fluctuations in gold prices have made it challenging to fulfill old orders at the new prices, as it is very difficult to explain and convince customers the state of affairs.”
Another businessman, Sanjay Soni pointed out, “Gold was once seen as a safe investment. But this is not the case now. While a large number of people previously invested in gold, now only 10 per cent are paying attention to it. Advance orders have almost dried up.”
The slowdown in the gold trade has had the maximum impact on artisans and other labour. Sheikh Asif, an artisan from Bengal working in Jaipur, said that till April, he used to produce 700-800 grams of gold jewelry every month. “But by mid-June, I have received work for making only 200 grams. Paying even the room rent has become difficult,” he said.
Due to the lack of work, many migrant artisans have returned to their homes. They say that even meeting food and drink expenses has become difficult and they are unable to afford rent and other expenses. They say that they are now getting only 20-30 per cent of the work they used to get which has made survival difficult.
It is silver that is offering some hope to them. Artisans are now turning to silver jewellery instead of gold.
One of the artisans, Mehboob who hails from Bengal, said he now receives more orders for silver than gold. “However, this work is not compensating for my lost income,” he added.
Another artisan, Abdul Malik, pointed out that while he used to receive orders in advance earlier, he now has to wander around looking for work.
Meanwhile, Sharif Mandal who came from Kolkata, said that because of the low demand in the market, he has found it difficult to find work and is now looking desperately for employment.
Those involved in the jewellery industry believe that if the situation does not improve soon, the crisis could deepen. They want the government to take concrete steps to save this traditional industry and secure the livelihoods of lakhs of people involved in it.