Silver is now the new gold. The metal has broken all previous price records breaching the Rs 75,000/kg mark for the first time ever. And as it hits an unprecedented high, jewellers all over the country and those who deal in the precious metal say they’ve suffered upto 50 per cent loss due to the sharp drop in demand following the price rise.
Rajesh Karyal, owner of The Silver Shine, a silver jewellery shop in Khan Market, Delhi, says, “Sales have slumped down to almost 50 per cent. It’s a huge loss. The rise in silver price has majorly affected the buying interest of customers.”
Tarang Kapuria, CEO of silver shop Amrapali, Delhi, says although the sales did dip initially, it’s gradually coming back on track, as people are getting used to the raised prices. “It’s a positive step for us. Due to its monetary value the balance sheet will remain unaffected, but the overall profitability will suffer. Although, the demand for silver home accessories and décor products is the same, sale of silver jewellery has reduced drastically.”
Also, as many expect silver to hit the Rs 95,000 or even the `1 lakh mark in the coming months, jewellers say some consumers are now buying the metal in bulk in anticipation of that price hike. “People are now buying silver as an investment. The prices are expected to shoot up even upto a lakh/kg before Diwali. Hence, many are buying silver in bulk,” says Ashish Balar, owner of Vama Fashion Jewellery Studio, Secunderabad.
While gold is a mature woman’s choice, silver is the love of young girls. But the sharp rise has dented youngsters’ silver shopping spree. Says Shraddha Rawat, a college student, “I was planning to buy silver earrings for my friend’s wedding to go with my dress that has a silver border. I might have to go for artificial jewellery now, as gold will look silly with the colour of the dress.”
Shruti Singh, manager at a Gurgaon MNC, says she will now quit buying silver jewellery in bulk. “I’m a die-hard silver jewellery fan, and earlier I never used to think twice before buying silver accessories. But now I will have to give it a second thought. After the rise in price, it’s no more an impulse buy for me. I will now buy only one silver jewellery piece at a time according to my budget and even go for silver look-alikes.”
But the skyrocketing price hasn’t dampened the spirits of some diehard fans of silver as Chahak Roda, a PR professional who had planned to buy a silver necklace, explains. “I only wear silver, so I couldn’t resist buying a light silver necklace at the current silver cost for Rs 3,000. I don’t think the increased price will hamper my love for silver jewellery,” she says.
Jewellery designers too are feeling the heat, for they’re now coming up with lighter and sleeker designs to keep the price within reasonable limits.
Suhani Pittie, jewellery designer, says, “Silver prices have gone through the roof. Our brand is known for its design. We neither want to compromise on our creativity in terms of design nor do we want our clients to have a limited variety. Hence we have silver plating on copper and it looks beautiful, so much so, that noone can tell the difference. Copper is not just affordable but also gives us room for creativity in our designs.”
