COIMBATORE: In G Venkatesh’s dimming gold workshop on Sundar Street in Gandhi Park area, the clang of hammers has fallen silent after 29 years, as volatile gold prices force goldsmiths’ livelihood to melt away.
While some have been forced to close their workshops, others have quit the profession altogether due to lack of job orders and loss of income.
Venkatesh is among the many goldsmiths in TN who have been forced to lay off workers to keep the business afloat. “I had employed two workers and was finishing job orders of nearly 1 kg of gold per month, when the price per gram was between Rs 8,000 -Rs 10,000. Now, I get orders once a week. I had to let go of the two employees, who were being paid Rs 800 per day. I cannot continue operating the workshop if the situation persists. Most workshops are in the same condition,” he said.
Seconding him, P Kannathasan, a goldsmith from Madurai with over 30 years of experience, said soaring gold prices have slashed business for small-scale goldsmiths by nearly 80%. “Many shops we supply to have reduced their orders, forcing workers to seek alternative jobs,” he said.
B Muthuvenkatram, president of Coimbatore Jewellery Manufacturers Association, said, “Over 25,000 goldsmith workshops provided direct employment to 45,000 people. These days, goldsmiths are hardly operating their workshops for five days a month.” He said gold trade has decreased below 100 kg, from over 200 kg a day.
An owner of a small jewellery shop said, “Many small shops are shutting and selling the gold in hand. Operating a business is costlier as they have to spend a minimum of Rs 2 lakh on rent, electricity, wages and other expenses.”
B Sabarinath, president of Tamil Nadu Jewellers Federation, which consists of 85 jewellery associations, is also the owner of a jewellery shop in Coimbatore. “Gold prices are unpredictable and we have lost footfalls by 75%. With most customers preferring to buy gold coins, there is not much profit in selling jewellery. We need to pay tax up to 35% under the weighted average method for all the gold in the stock on present-day value.”
The situation in Chennai’s traditional gold cluster, Sowcarpet, is no different. Rising bullion costs have reduced orders from retailers, forcing small workshops to scale back operations. Geetha, now employed as a gold appraiser at a bank, said the shift reflects a broader change within goldsmith families. Her uncle, a hereditary goldsmith, left the profession and now drives a taxi. “Ten years ago, workshops were busy and orders from jewellery shops were steady. That has changed,” she said.
Workshop operators say fluctuating prices have made jewellers cautious about placing orders, particularly for customised and labour-intensive pieces.
(With inputs fromMS Thanaraj @ Madurai and C Shivakumar @ Chennai)