The gold and silver market in Rajkot is fast losing its sheen due to a change in investment pattern of the people, general depression in sales and the increasing prevalence of imitation jewellery.
The daily turnover of the market has come down to a meagre Rs 30 lakh (Rs 3 million) a day from Rs 1 crore (Rs 10 million) in the past.
Balvantbhai Badani, president of the Rajkot Gold and Silver dealers' Association, said the market had sold 50 kgs of gold and 150 kgs of silver in the past, but the quantity of the precious metals sold has come down drastically now.
Imitation jewellery has eaten into the precious metal market in a big way, Badani said. People prefer imitation jewellery because it is cheap, attractive and safe to wear.
A general recession has badly affected the market and now, the change in the investing habits of people has added to it, he said.
He said there are around 3,000 small and big shops selling gold and silver ornaments in the town.
Ashokbhai, owner of Radhika Jewellers, said purchase of gold and silver ornaments is witnessing a marked decline.
Earlier, people used to invest in the precious metals, but they have lost interest in it now, he said.
Moreover, gold and silver ornaments have fallen out of favour with a large section of the younger generation, who think it is not fashionable to wear gold, he said.
Dilipbhai Soni, a silver trader, said the Diwali festival might bring in some cheer to the dull market.
Farmers from rural areas get money by selling their produce in this season and they are expected to buy gold and silver as an investment.
The wedding season would also help the business pick up momentum, he said.
As the old-fashioned gold and silver jewellery is losing out to the attractively designed imitation ornaments, the jewellers are now renewing their stocks, introducing new designs and patterns.
Some jewellers have called in experts from West Bengal to give their stocks a new look and their craftsmanship has helped the traders to a large extent, Soni said.
Many people do not consider gold as a safe harbour metal. Divyataben Gandhi, a school teacher, says she would prefer to invest in real estate not in gold and silver.
She feels real estate is a safe investment that will give her better returns than gold or silver.
Investment in real estate also provides her tax relief which gold cannot offer.
However, Kirtirajsinh Jhala, a building contractor, feels one should invest in a wide range of instruments including gold.
