Editor’s Note
This report highlights the economic strain on local bullion markets, where soaring precious metal prices are deterring customers and dampening trade, even during typically busy seasons. It underscores the broader impact of inflation on everyday commerce and consumer behavior.
The continuous rise in the prices of gold and silver has plunged the bullion trade in Raebareli into crisis. Despite the Sawan season being near, there is no sign of vibrancy in the market. Due to high prices, customers are shying away from purchases, affecting both the sales and profits of traders.
In Raebareli’s bullion market, gold was sold at ₹1,56,700 per 10 grams and silver at ₹3,07,000 per kilogram. These rates are increasingly moving beyond the reach of ordinary middle-class families. Families who had previously planned purchases for weddings or other auspicious occasions are now either postponing their purchases or, out of compulsion, buying jewelry in very limited quantities.
Usually, during Sawan, bullion markets are bustling with customers. The process of showing designs at shops, booking orders, and making advance payments picks up pace. However, this time the situation is the opposite. Fewer customers are reaching the shops, and those who do come are only inquiring about prices and leaving. This has clearly left traders disheartened.
Local bullion traders Vishnu Kumar Soni, Anil Soni, and Rinku Soni say that the sharp rise in gold and silver prices has directly impacted sales. They reported that where customers used to buy heavy necklaces, bangles, and sets, they are now limited to light jewelry or jewelry with less weight. This has not only reduced the volume of sales but also significantly decreased profits compared to before.
The biggest problem in the bullion trade is becoming the daily fluctuating prices. Traders Surendra Gupta, Lalit Kumar Soni, and Sandeep Soni say that due to volatility in the global market, gold and silver prices are changing every day. In such a situation, neither can customers make purchases at stable prices, nor are traders willing to take risks. Often, goods bought in the morning become more expensive or cheaper by the evening, keeping the risk of loss looming.
According to experts, economic uncertainty at the international level, the status of the US dollar, changes in interest rates, geopolitical tensions, and investors’ inclination towards gold are all reasons behind the surge in gold and silver prices. The impact of rising prices in the global market is directly felt in the domestic market, increasing difficulties for both local traders and customers.
Small shopkeepers associated with the bullion trade are being the most affected by this situation. For traders operating with limited capital, stocking goods at high prices has become risky. Many traders say that if these conditions persist, small bullion shopkeepers may be forced to shut down their businesses or join a larger enterprise.
Due to rising inflation and high prices of gold and silver, customers’ priorities are also changing. People are now preferring light, simple, and low-weight designs over heavy ornaments. Some customers are also turning towards silver or artificial jewelry instead of gold, dealing another blow to the traditional bullion trade.
There is also a class that views gold as an investment. However, due to sharp price fluctuations, they are also being cautious for now. Investors fear that prices may fall after purchasing at high levels, potentially leading to losses.
Organizations associated with the bullion trade have also expressed concern over the current situation. Traders say that the government and related agencies should pay attention to this so that stability can return to the market. At the same time, demands are being made for some policy steps to provide relief to small traders.
