Rajkot silver ornaments sales drop

Booming international prices have resulted in a 50 per cent decline in business in the silver ornaments market of Rajkot, traders said.

Due to the price rise in the global markets, the reputed ornaments industry in the district is unable to source quality silver from abroad and many unit owners have sold their stock to take advantage of the price hike.

This has pushed around 200 businessmen and 5,000 craftsmen of the industry into crisis.

There is a significant decline in the daily turnover of silver ornaments after the price hike in the global markets.

Over the last three months, the daily turnover has declined from around Rs 300 crore to Rs 1.50-1.75 crore.

The Rajkot gold and silver ornaments market is reputed for its quality and innovative designs and varieties.

The silver ornaments are prepared using fine grade silver imported from England. But the price hike has made imports costly, Balvantbhai Badani, president, Rajkot Gold and Silver Dealers' Association, said.

When the prices were steady, the silver market produced up to three tonnes of ornaments a day. Now the volume has declined by 50 per cent.

The market traded 50 kgs of gold ornaments and 150 kgs of silver ornaments a day, clocking a turnover of Rs 3 crore, Badani said.

The market will pick up momentum if silver prices came down, but the prices are expected to increase further.

Good quality silver is not available after the price hike and traders from other state are not ready to purchase ornaments from the Rajkot industry at higher prices.