Gold price surge hits Proddatur market; sales drop by 20%, hardship for artisans
KADAPA: Gold, once a cherished adornment for the common man, has transformed into a premium commodity, with 10 grams of 24-carat gold now priced close to Rs 1,00,000.
This unprecedented surge, driven by global factors such as the ongoing Russia-Ukraine war, Israel-Lebanon tensions, a weakening US dollar, and political instability in Arab nations, has rendered gold jewellery unaffordable for many.
In Proddatur, YSR Kadapa district, renowned as the 'Second Mumbai' and 'City of Gold' for its thriving gold market, the soaring prices have crippled businesses and pushed traditional goldsmiths into financial distress.
The escalating cost of gold has shifted consumer behaviour, with middle- and upper-class buyers opting for gold biscuits as investments rather than ornate jewellery.
This shift has led to a 20% decline in sales, severely impacting Proddatur's 350 jewellery showrooms and manufacturing units, which provide livelihoods for nearly 4,000 goldsmiths.
Across the erstwhile Kadapa district, approximately 1,300 gold outlets employ over 8,000 artisans, many of whom now face unemployment due to dwindling orders. Goldsmiths, equipped with costly machinery and specialized skills, struggle to pay shop rents, electricity bills, and staff salaries.
Many of the local artisans are forced to seek alternative employment, though transitioning to other fields proves challenging.
Proddatur's gold market, with a rich heritage spanning over a century, gained national prominence when local traders made significant purchases during an auction conducted by RBI, establishing a reputation for reliable pricing and pure gold.
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