Synopsis

Indian households are cashing in on high gold prices, selling nearly 50 tonnes of old jewellery in the last quarter, a 43% jump year-on-year. Fearing a price drop from ₹1.4 lakh to ₹1.2 lakh per 10 gm, consumers are opting for cash over new ornaments. This trend fuels the organised gold recycling industry, bringing idle gold back into circulation and reducing import reliance.

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Kolkata: Indian households are rushing to monetise old jewellery amid growing fears that gold prices may have peaked. Consumers sold nearly 50 tonnes of old gold during the April-June quarter, up 43% from a year earlier, according to the India Bullion & Jewellers Association (IBJA).

With prices recently touching around ₹1.4 lakh per 10 gm and expectations that they could retreat to ₹1.2 lakh, many consumers are opting to sell for cash and book profits rather than exchange old jewellery for new ornaments.

"Indian consumers are leveraging the high price of gold for liquid cash," said Surendra Mehta, national secretary at IBJA. "Though prices have fallen from a high of ₹1.8 lakh per 10 gm in the beginning of the year to ₹1.4 lakh, there is a fear among them that prices may further crash to ₹1.2 lakh, which is prompting them to sell gold to encash."

The trend is also boosting India's organised gold recycling industry as higher prices encourage households to bring idle gold back into circulation instead of keeping it locked away. Industry executives said consumers are increasingly treating gold as a financial asset that can be monetised when prices are favourable, creating a steady supply of recyclable gold for refiners and jewellers.

Gold-buying companies are seeing a similar surge. Muthoot Exim reported a 40% increase in old gold volumes across its network of more than 100 Gold Points nationwide.

"Consumers are becoming more comfortable monetising idle gold through organised and transparent channels," said Keyur Shah, CEO of Muthoot Exim. "This not only helps them unlock value but also supports the domestic gold ecosystem by bringing precious metal back into circulation."

The company sources old and unused gold directly from consumers, refines it into 24-carat pure gold and supplies it to jewellery and coin manufacturers. The process reduces dependence on fresh mining while strengthening domestic availability of the precious metal.

The shift comes as India continues to depend heavily on imported gold. The country imported gold worth about $72.4 billion in FY26, while recycled gold contributed an estimated 125-150 tonnes in 2025. Industry estimates suggest recycled volumes could rise to 200-250 tonnes in 2026 if current trends continue.

With Indian households estimated to hold nearly 30,000 tonnes of gold, industry players see organised recycling as a significant opportunity to improve resource efficiency and reduce import dependence.

Augmont has expanded its Gold For All network to 114 centres across multiple states, allowing consumers to evaluate, recycle and monetise their gold through organised channels.

"India has one of the largest household gold reserves globally, yet a significant portion remains idle," said Ketan Kothari, director of Augmont.