Slump in silver biz

JAIPUR: This Ganesh Chaturthi silver seems to have lost its shine. Soaring prices and economic downturn have hit the sales of silver items during the festive season.
The festival is marked by the purchase of various silver items such as Ganesh idols, utensils, and dankas' (sticks used to beat drums), which are considered to bring prosperity. However, the rise in silver rates have deterred most average middle-class buyers from purchasing.
"Due to recession, people are cutting down on their expenditures, and with the silver prices touching almost Rs 23,000/kg, not many have the money to invest in them," Ashok Sarraf, proprietor of a jewellery shop in the Walled city area, said.
"The usual buyers are also feeling the financial pinch, with many who placed orders for silver items worth five kg, bringing it down to just a kg," Avdesh Bansal, a jewellery retailer, said.
Manufacturers, retailers and wholesale dealers, who make high profits during the festival, have witnessed a slump of about 25-50% in their business. "The business has been poor. Last year, we were earned about Rs 10-15 crore daily, during the Ganesh Chaturthi, but this year it has come down to just Rs 50 lakh," Subhash Khandelwal, president, Rajasthan Sarrafa Sangh said.
With silver out of reach, many are opting for cheaper options. "Dankas are an important part of the festive rituals, but since silver dankas are expensive, people are buying the wooden ones to save money," Rajesh Sharma, who runs a retail jewellery business, said.
Even big buyers, who till last year placed bulk orders for silver items, are showing little interest due to high market rates of silver. "Most big buyers from other districts such as Ajmer, Jhalawar and Kota have cut down on their orders, as they are waiting for the market prices to fall," Khandelwal added.
Though the Navratri season is just round the corner, shop owners are not optimistic about business prospects. "The global prices of silver are affecting the local business as well. The market has been on a low since the past one year, and it would take more than a few months for it to recover the losses," Sanjay Agarwal, wholesale dealer in silver items, said.