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three years as demand for ornaments declined in line with soaring
prices of the precious metal on the local market, said industry
people. Annual demand for gold jewellery has declined to 10-12
tonnes from 45-50 tonnes five years ago. Jewellers said they saw
their annual turnover tumbling, as the number of consumers dropped.
Gold prices have increased manifold on the international market,
which has influenced the local jewellers to increase prices of their
products. The decline in sales has left the local jewellery makers
struggling to survive amid declining demand for gold items. On the
other hand, demand for alternatives such as silver or gold- plated
jewellery is growing. Anwar Hossain, president of Bangladesh
Jewellery Manufacturers and Exporters Association, said the trend of
slack sales started five years ago, but the situation turned worse in
2008. He said demand for the yellow metal jewellery decreased by 60
percent in the last five years. "Except for wedding, ordinary people
are no longer interested in buying gold jewellery. On top of that,
people tend to buy gold jewellery less than before," Hossain said.
Gold jewellery is losing out to gold-plated silver jewellery, as
people tend to buy lost-priced items. Gold plating is a method of
depositing a thin layer of gold onto the surface of another metal,
most often silver. The prices of 22- carat gold, most popular among
users, have almost tripled to Tk 29 ,200 per bhori (11.66 grams)
this year from Tk 10 ,614 per bhori in 2003. Buyers prefer 22-
carat gold for its purity, as it contains 96 percent of pure gold.
The annual market size of gold jewellery stands at around Tk 3 ,000
crore. Recycled gold jewellery is the main source for the bullion
traders for making new jewellery. The manufacturers also buy gold
from migrant workers and others, who are allowed to bring in 200
grams of gold every time they come home to Bangladesh. "Migrant
workers buy gold at international prices and sell it at home for
more, which is part of the reason for the price hike," said Dr Dewan
Aminul Islam Shahin, acting secretary of Bangladesh Jewellers'
Samity. He said local manufacturers buy gold from local travellers
and migrant workers, mainly from the Middle East. "We have been
following international standards from 2008. For standardisation, we
have to import machinery that is very costly but gives us an accurate
measurement," he said. "If the government helps import machinery with
low costs and duty, it will help local manufacturers and eventually
consumers," he said.
