Gold Rush in Reverse: Why Indians Are Cashing In Their Jewellery

Indian households are increasingly cashing in on their gold holdings as record-high prices encourage many to lock in profits rather than hold on to their jewellery, The Economic Times reported. The trend has led to a sharp rise in gold recycling, providing a boost to organised refiners while potentially reducing India's dependence on imported gold.

According to data from the India Bullion & Jewellers Association (IBJA), consumers sold nearly 50 tonnes of old gold during the April-June quarter, a 43% increase compared with the same period last year.

Industry experts say the surge reflects growing concerns that gold prices may have reached their peak after touching around ₹1.4 lakh per 10 grams, prompting many households to monetise their idle jewellery before prices soften further.

Consumers Rush to Book Profits

Traditionally, Indian consumers have exchanged old jewellery for new ornaments. However, the latest rally in gold prices has altered buying behaviour, with many choosing to sell their jewellery outright and receive cash instead.

According to the report citing Surendra Mehta, National Secretary of the IBJA, concerns that gold prices could decline further are driving the trend.

"Indian consumers are leveraging the high price of gold for liquid cash," Mehta said, adding that many fear prices could retreat to around ₹1.2 lakh per 10 grams, encouraging them to book profits while prices remain elevated.

The shift also reflects a broader change in how households view gold—not merely as jewellery or a store of wealth, but increasingly as a financial asset that can be monetised when market conditions are favourable.

Gold Recycling Gets a Boost

The rise in household selling is providing a significant boost to India's organised gold recycling industry.

Companies that purchase old jewellery are witnessing a sharp increase in volumes as consumers bring idle gold back into the formal market.

Muthoot Exim reported a 40% increase in old gold collections across its network of more than 100 Gold Points nationwide, The Economic Times report said. The company purchases used jewellery from consumers, refines it into 24-carat gold, and supplies the purified metal to jewellery manufacturers and coin makers.

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

According to Ketan Kothari, Director at Augmont, India possesses one of the world's largest household gold reserves, but much of it remains unused.

Reducing India's Import Dependence

The growing recycling trend could also help reduce India's reliance on imported gold.

India imported gold worth around $72.4 billion during FY26, making it one of the country's largest import items. In comparison, recycled gold contributed an estimated 125-150 tonnes in 2025.

Industry estimates suggest recycled volumes could increase to 200-250 tonnes during 2026 if current trends continue.

With Indian households estimated to own nearly 30,000 tonnes of gold, industry executives believe organised recycling could become an increasingly important source of domestic supply, improving resource efficiency while lowering the country's dependence on imported bullion.

As gold prices remain volatile, the trend suggests that more consumers are beginning to treat their jewellery not just as a cultural asset, but as a financial resource that can be liquidated when market conditions are favourable.