Silver price in the domestic market has gone through the roof particularly due to increasing international price and also the drop in supply due to the import restriction.[break]
This has affected sliver trading in the local market. The demand for silver products that had touched peak during the festival season has plummeted drastically in recent months. The surge in price has also added to the cost of production of silver handicrafts, leave to heavy drop in exports.
According to Nepal Rastra Bank, the export of silverware and jewelries decreased by 81.3 percent during the first four months of the current fiscal year.
“The skyrocketing price of silver has invited additional woes to business at a time when the demand is usually low. Sales have declined by more than 50 percent,” Sushil Mohta, director of Silver Estate, told Republica.
“Two months ago, we had experienced a surge in demand by more than 30 percent. We are getting orders but we don´t have silver in stock because of problems in supplies,” Mohta added.
The price of silver has moved in relative tandem with the price of the gold in the last one year. Moreover, the rate of increment in silver prices has outweighed the rate at which gold has been shining over the period.
“In comparison to gold that saw rise in prices at the rate of 25 percent in one year´s duration, the price of silver has increased by more than 50 percent,” says Tej Ratna Shakya, president of Nepal Gold and Silver Dealer´s Association. He told Republica that demand for silver has come down to almost nil after the Dashain-Tihar festive season.
Silver was traded for Rs 885 per tola (11.664 grams) on Monday.
Suman Man Tamrakar, Eco-Design Jewelry, echoed Mohta and said there were undergoing a difficult time due to slow demand amid rising silver prices. “Until a few weeks ago, we used to get demands for four to five silver utensils and jewelries in a day. It´s becoming really difficult for us to continue business,” he added.
Though silver traders are seeing unfavorable business scenario due to problems in silver supplies, they say popularity of silver jewelries and handicrafts have been increasing over the years.
The demand for traditional silver utensils like Sukunda, Tikadani and Pujathali; and jewelries like pendants, bracelets and neckpieces are high, according to the traders.
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