PHOTO: Express
It remains a luxury good, which to date is valued and in particular, remains essential during marriages and traditional celebrations.
Given this, it is no surprise that goldsmiths have also flourished in South Asia with some families claiming histories of several decades in the profession.
The art of crafting jewellery and designing stunning pieces, which were in demand not only locally but worldwide has long since passed down from generation to generation of goldsmiths.
However, recent shifts in the market, coupled with rapid increases in the rates of gold and an uncertain political situation, has caused the gold market in Pakistan to contract.
Unlike in world markets, gold loses shine in Pakistan
While gold jewellery remains revered still, it is no longer viewed as an essential ornament for a married South Asian woman, especially in urban areas.
The younger generations prefer modern and contemporary designs, or delicate statement pieces with less gold weight. Many lean towards silver or artificial jewellery.
Among the elite, heavy gold jewellery is reserved specifically for special occasions, given the shift in trends, while the less-privileged sections of society find their purchasing power increasingly reduced when it comes to gold.
This drop in demand has affected goldsmiths most drastically, with nearly 70% of workshops in Karachi shutting down.
27 years and Rs100m later, Landhi Sports Complex still non-functional
Craftsmen’s plight
According to Sindh Sarafa Association President Haroon Chand, the demand for gold jewellery in Pakistan has seen an unprecedented fall. Gold is bought for investment purposes but gold jewellery is not in demand, leaving craftsmen idle even during peak wedding seasons, he claimed.
According to Chand, families now prefer to exchange old jewellery and have it remolded into new designs instead of opting for new purchases. Consequently, it has become difficult for goldsmiths to make ends meet and many of them have reluctantly switched to other professions.
Several workshops in Karachi have closed shop, with redundant workers being forced to opt for professions such as food suppliers, eatery or food stall owners, rickshaw drivers and car and motorcycle riding services, to name a few.
The workers blame inflation and unemployment as driving factors for the reduced market of their products.
Muhammad Naeem, who is now a food supplier at the gold market in Saddar, said that jewellery making had been his ancestral profession. His father and brother were also in the business but the increase in gold prices and fall in citizens’ purchasing power has led to a decline in the industry, he said.
Emerging technologies
Modern technology, as in other industries, has also played a role in the contraction. In India, the craft has already been taken over by machines. The Pakistani gold market still relies heavily on hand crafted jewellery but the workers remain at a disadvantage.
Adding to the woes of craftsmen are stricter regulations from jewellers and retailers such as deduction on wastage of gold during the crafting of jewellery.
At the same time, retailers also cut wastage costs when they are trading in old jewellery sets for newer ones and might even waive off labour charges in order to retain old customers or gain new clients. This wastage often comes at the expense of the craftsmen.
Reduced exports
Exporters of gold jewellery are also troubled. The value of gold jewellery exports was estimated to be USD3.3 million from July to December 2018, while in 2017 the same period saw exports valued at USD4.4m. According to statistics, recent months have seen a 23% fall in exports of gold jewellery.
United States of America, Canada and Britain used to be the biggest importers of Pakistani gold jewellery but have now taken their demand to suppliers from India.
According to exporters, the government’s crackdown on illegal flight of capital from the country has also hindered the export of gold jewellery.
Changing consumer patterns
The unprecedented rise in gold prices, the devaluation of Pakistani currency and prevalent street crimes have contributed to the reduced demand of gold jewellery in Pakistan. Added to this is the increasing popularity of artificial and imitation jewellery.
Meanwhile, younger generations prefer 18 carat gold over the previously popular 24 carat gold and opt for more contemporary designs that use less quantities of gold as opposed to the traditional heavily set designs of the past.
These changes come at the expense of craftsmen who find a reduced demand for their products. Retailers are still relatively better off as the buying and selling of gold jewellery still prevails because of the status that gold enjoys in South Asian cultures.
Shifting trends
Artificial and imitation jewelry has also gained traction in the recent past, causing the gold market to shrink. Pakistan does have an established artificial jewellery industry and goldsmiths have also switched to producing jewellery from silver and other precious metals but the wages for labourers in this industry are comparatively lower.
Pakistani artificial jewellery industry is largely cottage-based. In Karachi, Hyderabad, Lahore, Multan, Faisalabad, Peshawar and in other smaller cities, home-based women workers, and men in small workshops, prepare imitation jewelry which at times is painted with gold, giving it a similar appearance.
These designs are cheaper hence more budget-friendly options for those unwilling or unable to pay the high price for gold jewellery.
While there is no alternative for Polki and Kundan jewellery which still remain popular, increasing production costs and the influx of imports of artificial jewellery from China, Thailand and India have affected the local imitation jewellery industry.
The imports, often machine produced, are cheaper and hence jeaopardise the sustainability of the local industry.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ