Indian Households Are Selling Old Gold In Large Numbers; What’s Behind The Sudden Rush?

Indian households selling old gold has picked up sharply as many families fear gold prices may have already reached their peak. Instead of exchanging old jewellery for new ornaments, more people are choosing to sell unused gold and secure profits while prices remain high. The trend comes even as gold prices have slipped from earlier record levels, with consumers worried they could fall further in the coming months. Industry experts say the shift is also giving a major boost to India’s organised gold recycling sector while helping bring idle gold back into circulation.

According to the India Bullion & Jewellers Association (IBJA), nearly 50 tonnes of old gold were sold during the April-June quarter, marking a 43% jump compared with the same period last year. Gold prices have eased to around Rs 1.4 lakh per 10 grams after touching nearly Rs 1.8 lakh earlier this year, and expectations that prices could decline further to Rs 1.2 lakh are encouraging many households to cash out now, according to an ET report.

Reasons Behind Indian Households Selling Old Gold As Price Correction Fears Grow

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

Industry executives said Indian households selling old gold also reflects a growing view of gold as a financial asset that can be converted into cash whenever prices are favourable. They believe this is ensuring a steady supply of recyclable gold for refiners and jewellers while encouraging families to bring idle jewellery into the market instead of letting it remain unused.

How Indian Households Selling Old Gold Is Strengthening The Recycling Industry

The growing trend is helping India’s organised gold recycling industry expand rapidly. Businesses buying old gold are reporting higher collections, with Muthoot Exim recording a 40% increase across its network of more than 100 Gold Points nationwide.

As per reports, Keyur Shah, Chief Executive Officer of Muthoot Exim, said, “Consumers are increasingly embracing organised and transparent avenues to convert their idle gold into cash. This enables them to realise the value of their holdings while also strengthening the domestic gold ecosystem by bringing the precious metal back into active circulation.” The company buys old and unused gold directly from customers, refines it into 24-carat pure gold and supplies it to jewellery and gold coin manufacturers. This will minimize the need for mining of fresh gold while maximizing domestic supply.

Indian Families Selling Old Gol Can Bring Down Gold Imports by India

This happens against the backdrop of India’s increasing dependency on gold imports. For FY26, India’s gold import bill stood at almost $72.4 billion, where the supply of recycled gold was 125-150 tonnes in 2025. Industry experts estimate that recycled gold can increase to 200-250 tonnes in 2026.

With Indian households estimated to own nearly 30,000 tonnes of gold, industry leaders see organised recycling as a major opportunity to improve resource utilisation and cut import dependence. Augmont has expanded its Gold For All network to 114 centres across several states to help consumers assess, recycle and monetise their holdings. Ketan Kothari, Director at Augmont, said, “India has one of the largest household gold reserves globally, yet a significant portion remains idle.”

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