High gold prices push up artificial jewellery demand

With the price of gold touching new highs, hitting the jewellery business, it is the artificial jewellery manufactured in this city that has caught the fancy of buyers. Manufacturers are witnessing a 10-15 per cent increase in demand.

The market in the periphery of the Golden Temple is one of the main ones dealing in artificial jewellery.

Artificial jewellery is manufactured on a large scale here. Manufacturers say Mumbai is one of the main markets for artificial jewellery, especially because it is being widely used in Bollywood movies. Besides, it has also caught the fancy of foreign tourists visiting the Gold Temple.

Most of the craftsmen are from Bengal.

Narinder Singh, a shopkeeper, said: "The recent spurt in prices of gold in domestic as well as overseas markets has fuelled demand. And the high end of the market is getting attracted to artificial jewellery. So, all these factors have led to a 10-15 per cent increase in demand, and we hope in the near future the demand will increase by 20-25 per cent because the global prices of gold will go up further."

A jeweller said: "With rising prices of gold and tough competition, leading eventually to a decline in profits, more and more jewellers have ventured into making artificial jewellery. Amritsar is emerging as one of the biggest suppliers of this jewellery."

The prices of artificial jewellery range from Rs 25 to Rs 8,000, depending on the material used. Jewellery fitted with artificial stones, necklaces, chains and nose pins were in great demand.

However, the alleged step motherly treatment of the government was playing havoc with this business. Manufactured opined that this trade, which provided employment to many people, should be brought under small-scale industry.