Indian Households Selling Old Gold: Why is there a competition among Indians to sell gold? Are prices going to fall, know the reason

After the record rise in gold prices, many Indian families are now busy earning profits by selling their old jewellery. The reason is very simple, people fear that the price of gold may fall further in the coming months, due to which the value of their jewelery will reduce.

Competition to sell old gold

After reaching all-time high, gold prices have softened slightly. On Friday morning, gold on MCX had fallen from its peak and was trading at around Rs 1,44,199 per 10 grams.

According to ‘India Bullion and Jewelers Association’ (IBJA), Indians sold about 50 tonnes of old gold in the April-June quarter. There has been a huge jump of 43% in comparison to the same quarter last year. Many customers feel that gold has touched its highest level and now it will only go down.

According to a report in ‘Economic Times’, while recently gold was around Rs 1.4 lakh per 10 grams, the market expects it to fall to Rs 1.2 lakh. This is the reason why many families are finding it better to withdraw cash by selling gold instead of keeping it with them.

Why are people selling their jewellery?

Surendra Mehta, National Secretary, IBJA National Secretary Surendra Mehta says, ‘Indian consumers are taking advantage of the high prices of gold and converting it into cash.’ He further said that due to the fear of further fall in prices, people are securing their profits by selling gold. For many families, old jewelery lying idle in lockers has become a great way to earn cash at amazing prices.

Impact of global reasons is also visible

This pressure on gold prices is not only in India but all over the world. Due to increasing tension between America and Iran, the prices of crude oil are increasing, which has affected gold. Also, expectations of further increase in interest rates by the US Federal Reserve have also dulled the shine of gold. In fact, when interest rates increase, people prefer to invest money in places where fixed interest is available instead of things without fixed returns like gold.

Silver from gold recycling industry

This sale of old gold is giving a big boost to India’s organized gold recycling industry. The old gold which was lying in the shelves and bank lockers, is now being cleaned and reaching back to the jewelery manufacturers in the form of pure gold. ‘Muthoot Exim’ has recorded a 40% increase in the volume of old gold across its network of over 100 ‘Gold Points’. The company’s CEO Keyur Shah said, ‘Now customers are feeling very comfortable in converting their idle gold into cash in an organized and transparent manner.’

Why is recycling important for India?

Dependence on imports will reduce: India is one of the largest buyers of gold in the world, but imports most of its gold requirement from outside. In the financial year 2026, India had imported gold worth about $ 72.4 billion. The contribution of recycled gold in the year 2025 was 125-150 tonnes. Experts believe that if this trend continues, this year this figure may reach 200-250 tonnes. It is estimated that Indian families have about 30,000 tonnes of gold. Experts say that if recycling of this gold is done properly, the country’s dependence on foreign countries will be greatly reduced.

So should you also sell your gold?

It is clear from the rapid sale of old gold that people are taking advantage of this high price. However, financial planners say that the decision to sell gold should not be taken considering the fluctuations of the market, but according to one’s personal needs.

If you have old jewelery that is no longer of any use, this could be a good opportunity to convert it into cash. But if you are a long-term investor, then it is wise to keep gold with you, because in times of inflation, global tensions and market fluctuations, gold always proves to be the safest partner.

Disclaimer: This article is for general information only. There are risks involved in the market, so always consult your financial advisor before investing or selling gold.

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