Report Says Indians Offloaded 50 Tonnes Of Old Gold Amid Record Prices This Quarter

Indian households are increasingly cashing in on soaring gold prices by selling old jewellery instead of holding onto it or exchanging it for new ornaments, reflecting a shift in consumer behaviour amid expectations that bullion prices may have peaked. According to a report by The Economic Times, nearly 50 tonnes of old gold were sold across the country during the April-June quarter, marking a 43 per cent increase compared with the same period last year. Industry experts attribute the trend to consumers seeking to monetise their gold holdings while prices remain relatively elevated.

The report, citing data from the India Bullion & Jewellers Association (IBJA), indicates that many consumers believe gold prices could decline further after reaching around ₹1.4 lakh per 10 grams in recent months. Rather than opting for the traditional practice of exchanging old jewellery for new designs, a growing number of people are choosing to sell their ornaments outright and receive cash, allowing them to lock in profits earned from the sharp rise in gold prices over the past year.

Surendra Mehta, National Secretary of the IBJA, said the surge in old gold sales reflects a cautious outlook among consumers. "Indian consumers are leveraging the high price of gold for liquid cash. 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," Mehta told The Economic Times. The expectation of further price corrections has encouraged many households to liquidate part of their gold holdings instead of waiting for future market movements.

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Gold has traditionally been regarded as one of the most trusted investment and savings instruments in India, with households accumulating jewellery not only for cultural and social reasons but also as a long-term store of wealth. During periods of rising prices, consumers often exchange older ornaments for newer ones by paying only the difference in value. However, the latest trend suggests that many buyers are prioritising liquidity over fresh purchases, using the opportunity to convert appreciating assets into cash.

Analysts note that movements in domestic gold prices are influenced by a combination of international bullion rates, currency fluctuations, import duties and local demand. After witnessing a strong rally earlier in the year, gold prices have shown signs of moderation, prompting some investors to book profits. While long-term demand for gold in India remains robust, short-term uncertainty over price direction appears to be influencing consumer decisions, particularly among households looking to maximise returns from existing jewellery.

The increase in old gold sales could have wider implications for the jewellery industry and bullion market. Higher recycling of gold reduces dependence on imports and provides jewellers with an additional source of raw material. At the same time, subdued demand for new jewellery purchases could weigh on retail sales if consumers continue to favour cashing out rather than reinvesting in ornaments. Whether the trend persists will largely depend on future movements in gold prices and broader economic conditions, but the latest figures indicate that many Indian households are choosing to monetise their gold assets while market prices remain comparatively high.

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