DHAKA: Every morning, before Dhaka's goldsmiths open their shops in the city's historic Tanti bazaar, Shahabuddin climbs into the sewers under the alleyways to pan for scraps of discarded gold.

When bullion began its record-breaking rally in 2008, tiny specks of gold that Shahabuddin fished from the sludge earned him up to 1000 taka ($14) a day — a fortune in Bangladesh, where the average wage is $25 a month.

But when gold hit a record above $1,226 an ounce early last month, Shahabuddin, 45, and the 20,000 goldsmiths at the Tanti Bazaar saw the other side of the commodities boom.

“Because of sky-high prices most people have stopped buying gold ornaments even for weddings. Marriage season has begun, but most goldsmiths are sitting idle,” Shahabuddin said.

There are around 400 gold shops and factories at the bazaar, most of which have been run by Hindu goldsmiths since the market was founded in the 18th century. But this year the market is quieter.

“If the goldsmiths don't have any work, we don't have anything to collect,” Shahabuddin said, adding that he now finds only 100 to 200 taka of gold scraps a day and thinks searching through human excrement “too foul” for such meagre rewards.

Gold prices have dropped slightly from their peak in December but at around $1,100 an ounce this week — around $250 higher than a year ago — they are still too high for many of Bangladesh's normal buyers.

“The middle class has simply stopped buying gold ornaments for weddings. Even the rich no longer buy gold for gifts,” said Ganga Charan Malakar, owner of the country's biggest chain of gold shops, Venus Jewellers.

Bangladeshi traditions require a groom gives a full set of gold ornaments to his bride as a wedding present. The ornaments normally weigh between 40 and 200 grams, depending on how wealthy the groom and his family are.

Malakar said jewellery sales have fallen over 50 per cent in the last year, forcing hundreds of artisans to close their shops or run their business at a loss. “Look at my shop: it is empty. During this season in the past, we used to hire extra salesmen to handle clients. I've never seen anything like this in my life,” he said.

Malakar, who is the president of the 25,000-member Bangladesh Goldmiths Association, said that over the last year, the small jewellery factories at Tanti Bazaar had slashed many jobs.

Accortding to Adi Kartick Roy Poddar, 63, when he started the pawnshop four decades ago there were only a few pawnshops in Tanti Bazaar, but now they are everywhere. According to the bazaar's Gold Merchants Association, the number has nearly doubled over the past five years. “Tanti Bazaar will soon be known for only the pawn business, not for gold jewellery anymore,” he said.