Sometimes gold is becoming cheaper and sometimes expensive, why are people of India selling old jewellery?

Buying and holding gold is considered the safest way to invest. This is the reason why India is far ahead in importing gold. There has been a tremendous increase in the prices of gold in the last few years. Gold prices have been fluctuating for a long time and now Indian people are a little scared due to this. The result of this fear is that people have started selling old gold quickly. People fear that the price of gold may fall so low that they may suffer losses. Interestingly, due to the import of gold, Prime Minister Narendra Modi had appealed that people should buy less gold or not buy it at all. Recently he also said that after his appeal people have reduced buying gold. Now it is being seen that instead of buying, people are also selling gold.

If we look at the gold market, a total of gold worth Rs 6.69 lakh crore was imported into India in the year 2025-26. The share of recycled gold in this was only 125 to 250 tonnes. It is now estimated that if the pace at which people are selling old gold continues, the share of recycled gold could reach 200 to 250 tonnes in 2026.

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Why did people start selling gold?

According to India Bullion and Jewelers Association (IBJA), about 50 tonnes of gold was sold between April and June. If compared to April to June last year, it is 43 percent more. This year the price of gold had gone up to Rs 1.75 lakh per 10 grams. Now the price of gold has come down to Rs 1.4 lakh and it is feared that it will fall further and the price of 10 grams of gold may even come up to Rs 1.2 lakh. According to a report by Economic Times, amidst the falling price of gold, many customers are preferring cash instead of gold and are selling the gold out of fear that its price may fall further.

In a report in Economic Times, IBJA National Secretary Surendra Mehta has said, ‘Although the price of gold had come down to Rs 1.8 lakh to Rs 1.4 lakh in the beginning of the year, but now people fear that this price may go up to Rs 1.2 lakh. This is the reason why people are preferring to keep the money by selling gold. At the same time, those who have old gold are also getting good prices, hence people are now withdrawing money by selling gold.

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People are withdrawing money by selling the gold lying in their houses so that this money can be put to some use and they can also avoid risks. In the current situation, due to less supply of gold, recycled gold is being given more preference. There are many companies that buy old gold and refine it and convert it into 24 carat gold. This gold is used in making coins and jewellery. Increasing its availability can also help in reducing dependence on imports or new mining.

Let us tell you that Indian families have about 30 thousand tonnes of gold lying around. In such a situation, experts believe that if some of this gold can be used then imports can be reduced.