Jewelry markets have been hit hard by Afghanistan’s economic crisis in the past year and a half, especially markets in the central province of Ghazni, where jewelers say sales have dropped by about 70 percent.
They say the reason for this is the economic crisis, as customers no longer have the money to invest in gold and silver.
The people of Afghanistan have a long history of investing in gold and silver; with gold being one of the most institutionalized assets within Afghan culture.
As part of the marriage ritual, the groom purchases a set of gold jewelry and women continue to buy gold jewelry after marriage as an investment. Knowing its price is stable if the need to sell arises in the future, this can be done at a slight discount, at a price dictated by international markets.
But today, under the current circumstances, Ghazni jewelers claimed that business is bad because people can no longer afford to buy jewelry made of gold and silver, which are highly popular in Afghanistan.
“We haven’t had good sales over the past year. Mostly, we have bought gold from the people. An increase in poverty and unemployment has pushed the people to sell their jewelry,” said Ajmal, a goldsmith.
“The market is down compared to the past. It is near zero. People’s finances have dwindled, and we have become buyers of gold,” said Nawidullah, a jewelry shop owner.
Another goldsmith, Mohammad Salim, said it was the first time in many years of him being in the business that he mostly deals with people selling their jewelry.
“People are facing economic challenges; therefore, they are left with no option but to sell their gold and other precious goods to afford the needs of their daily life,” he added.
These shop owners said that the Taliban has also meanwhile increased taxes on their businesses in the past year, which is causing serious problems for their cash-strapped businesses.
The sharp drop in sales on jewelry markets has also been reported in other parts of the country including Kunduz and Badakhshan provinces in the north and in Kabul.