As gold prices ease after hitting record levels, many households are rushing to cash out on their old jewelry while prices remain attractive.
In other words, on Friday morning, MCX gold was trading at around Rs 1,44,199 per 10 grams, well below its all-time high. The fear is simple: if gold prices fall further, they may receive less value for their jewelry.
Indian households sold nearly 50 tonnes of old gold during the April-June quarter, up 43% from a year ago, as many rushed to book profits, according to the Indian Bullion and Jewelers Association (IBJA).
WHY DO PEOPLE SELL GOLD?
Gold prices hit record highs earlier this year and then witnessed a sharp correction in recent weeks.
Many consumers now believe that prices may have peaked and may fall further.
According to an ET report, with gold trading at around Rs 1.4 lakh per 10 grams recently and the market expecting that prices could come down to around Rs 1.2 lakh, households are choosing to monetize old jewelery rather than storing it.
“Indian consumers are using the high price of gold to obtain liquid funds,” Surendra Mehta, national secretary of IBJA, told ET. He added that fears of a further correction are prompting many households to sell their gold and cash out their profits.
GOLD UNDER GLOBAL PRESSURE
The selling trend comes as gold prices remain under pressure in international markets.
Spot gold fell on Monday as renewed tensions between the US and Iran pushed up crude oil prices, while expectations of further interest rate hikes by the US Federal Reserve weighed on the precious metal.
Higher interest rates tend to reduce the attractiveness of gold because the metal does not offer a fixed return, which encourages investors to move toward interest-earning assets.
RECYCLING BUSINESS GETS STRENGTHENED
The rise in old gold sales is also benefiting India’s organized gold refining industry.
Instead of sitting idle in cabinets, old jewelry is returned to the formal economy, processed into pure gold, and supplied to jewelry manufacturers.
Muthoot Exim reported a 40% increase in old gold on its network to over 100 gold points.
“It is becoming more convenient for consumers to monetize idle gold through organized and transparent channels,” Keyur Shah, CEO, Muthoot Exim, told ET.
WHY IS THIS IMPORTANT FOR INDIA
India is one of the world’s largest consumers of gold, but imports most of the precious metal it uses.
India imported around $72.4 billion worth of gold in FY26, according to the report. Recycled gold is estimated to be 125-150 tonnes in 2025, while industry estimates suggest the figure could rise to 200-250 tonnes this year if current trends continue.
With Indian households estimated to own nearly 30,000 tonnes of gold, industry leaders believe organized recycling can reduce the country’s dependence on imports while helping consumers unlock the value of idle assets.
SHOULD YOU SELL GOLD?
The recent surge in gold sales shows many households are choosing to take profits after record gains.
However, financial planners typically advise that the decision should depend on individual financial needs rather than short-term price movements.
For those no longer using old jewelry, the current price level may offer an opportunity to monetize idle assets. But for long-term investors, gold continues to play an important role as a hedge against inflation, geopolitical uncertainty and market volatility.
(Disclaimer: The views, opinions, recommendations and suggestions expressed by the experts/brokerages in this article are their own and do not reflect the views of India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choice.)
– Ends
Published:
Jun 29, 2026 08:44 IST