Indian households are rushing to sell their old gold, betting that prices may have already peaked and could fall further from the record highs hit earlier this year. Rather than exchanging old jewellery for new pieces, a growing number of consumers are choosing to sell outright and lock in profits a shift playing out against India’s continued heavy dependence on imported gold.
A sharp jump in old gold sales
Data from the India Bullion & Jewellers Association (IBJA) shows that Indian households sold nearly 50 tonnes of old gold between April and June a 43 per cent jump over the same period last year. The surge comes even as prices remain historically high: retail rates have eased to around ₹1.4 lakh per 10 grams after touching nearly ₹1.8 lakh earlier in the year, and many households fear a further slide to ₹1.2 lakh, prompting them to encash their holdings now rather than risk a deeper correction later.
Recycling industry rides the wave
The trend has given a strong boost to India’s organised gold recycling sector, as high prices push households to bring idle gold into the market rather than let it sit unused. Industry executives say consumers are increasingly treating gold as a financial asset to be converted into cash when prices are favourable a shift that also ensures a steady supply of recyclable gold for refiners and jewellers.
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Firms in the business are seeing the effect directly. Muthoot Exim reported a 40 per cent rise in gold collections across its network of more than 100 Gold Points nationwide. The company buys old and unused gold from consumers, refines it into 24-carat gold, and supplies it to jewellery and coin manufacturers reducing the need for fresh mining while adding to domestic supply.
India remains heavily reliant on imported gold, having brought in bullion worth close to $72.4 billion in FY26. Recycled gold contributed an estimated 125–150 tonnes in 2025, and industry projections suggest this could climb to 200–250 tonnes in 2026 if the current pace of selling continues.
What’s driving the price swings
Market experts attribute the recent recovery in gold prices to investors recalibrating their expectations around the US Federal Reserve’s interest rate path, alongside continuing geopolitical uncertainty and swings in crude oil prices. Comex gold futures climbed to $4,044.80 an ounce internationally. Uncertainty has persisted after Iran reiterated its intent to retain control over shipping through the Strait of Hormuz, a critical route for global oil trade.