Gold ornament business loses glitter due to high prices

LAHORE – The skyrocketing gold rates, high inflation, worsening law and order and dwindling economy, have dragged down the gold ornament business to zero level, market operators said. 

The rising gold prices in the international market have forced the customers to use artificial jewellery, pushing the majority of gold ornaments manufacturers and merchants out of business, jewelers in the local market said.

Khawaja Muhammad Naseem, President of the Rang Mahel Sarafa Bazaar Association, said that the demand of the artificial jewellery in domestic market has increased manifold in the past few years and the precious metal business has come to a halt. Resultantly, the skilled workers have moved to manufacturing of artificial jewellery while the businessmen are speedily leaving this profession. 

He believes that almost all jewellery shops owner are doing their side business that is why they fear to leave the profession.

Gold Art Promotion Council Lahore President and FPCCI Regional Committee on Gems and Jewellery Chairman Hafiz Muhammad Ahmed told The Nation that rupee depreciation is the main reason behind the alarming hike in gold rates at domestic level. He said the jump in world gold rates impacts little in India, as their inflation rate is less than Pakistan, besides their rupee is strong. He said presently gold is available for Rs35,000 per tola in India while here the rate has crossed Rs62,000 a tola.

He said that several countries including China, Brazil and India are accumulating the gold, even China is now trading in gold, he added. He said the future of international currency is not dollar rather it would be the gold. He was hopeful that the precious metal rate would fall but for a very short period, as speculators are also behind the fluctuation of its rate.

He said now the gold merchants have started to display the artificial ornaments at their counters to continue their livelihood.

He pointed out that the number of traders who quit the gold business is low rather the majority of the people have diverted their business to other fields.

“People have been in this profession for over 100 years. For them it is impossible to leave this trade. They have now started to invest in property, garments and fabrics business. Earlier the whole family was indulged in the gold trade. Now one family member sits in the shop for a short period and rests of the members have taken over other businesses,” he maintained.

He said due to high price of gold the jewellery markets in small areas, including Suha Bazaar, Yateem Khana, Bhagwan Pura, Ichhra, Karishan Nagar and Muzang bazaars, the business has almost been closed or near to closure. However, some gold customers can be seen in the markets of Defence, Gulberg, Liberty, Panorama and Commercial Building. He said that they are still earnings because they have made heavy investments.

He said the worst affectees of the collapse of gold business are the workers class. He said that almost every businessman has kicked out his whole group of craftsmen and goldbeaters, who are now working as waiters at some hotels or become vendors and salesmen.

He said if 90 percent workers have been fired only 15-20 percent have moved to artificial jewellery craftsmanship, rest of the artificers are now selling Naan Chhole or kababs on the carts. He said several people are even still unemployed, whom he personally knows. 

A gold artificer, who has left the goldbeating job, told the scribe, that he and his whole family was working at Suha bazaar and earned up to Rs5,000 daily. But after joining the artificial jewellery work, their income could not exceed Rs1000 per day. So, they and his sons decided to set up a small restaurant. This job is very hectic but he is satisfied, as the income is sufficient to run his household business.

He informed the reporter that the artificial ornaments manufacturing is not catchy for the workers, as they are very low-paid due to tough competition with Chinese and Indian goods. However, he said the future of this business is very bright. He added that some artificial jewellery crafted in Karachi is very fine and of international standard.

A gold merchant, who was the owner of Ghosia Jeweller shop at main gold market, said that he has left the gold business because his shop was on rent. The circumstances forced them to quit this job, he said and added that he now deals in garments and sits at the rented shop at Azam Cloth Market. He stated that his business is running in a better way as compared to the fluctuated trade of gold, which might ruin a millionaire any time. He said that all businessmen who were on rent have left the business and only those are sticking to the gold profession, who have their outlets. 

Hafiz Qaiser, who also deals in gold business at Commercial Plaza in Anarkali, said the soaring prices of the precious metal is making an adverse effect on the local gold market. He said that sales of imitation jewellery in the local market have increased alarmingly during the last couple of years. 

He said that owing to surging food prices and high cost of living, people cannot afford to buy gold ornaments. Even on wedding occasions wealthy families preferred to purchase lightweight gold jewellery sets or gold-plated jewellery.

He pointed out that tradition of gold heavy jewellery has now ended and people who used to order for 10-tola gold ornaments are now asking for only two tolas sets. Responding to a question, he said the quality of local imitation jewellery is very high. However, the increasing requirement is fulfilled by the imported jewellery from India, China and Italy. Around 85 per cent of imitation jewellery is imported from India and China, he added.

He said that the golden-plated and silver-coloured ornaments, including ear-tops, bangles, rings, necklaces, chains, nose pins, toe-rings, anklets, bracelets and others items are brought from India. While plastic ornaments are brought from China, however some parts of it is also being manufactured locally.

Mr Qaiser said the demand of artificial jewellery has been gradually increasing and thousands of workers are involved in making imitation ornaments. He said now the poor people buy locally-made inferior quality imitation ornaments while the people of upper and upper-middle classes fashionable women mostly purchase Italian imitation ornaments, as their design and quality are very well.

He said that worse law and order is compelling buyers to stay indoors, as they fear to be looted. So to wear artificial ornaments is far safer as well as cheaper. He said that huge sale of the artificial jewellery has raised its prices to Rs10,000 per set from Rs2,000 just in one year. He said that earlier, a customer who used to buy 10-toal’s gold ornaments in marriage of his daughter, now purchases just jewellery of two tola’s gold to sustain his status
.