Gold prices fall: Indians sell old jewellery as fears of deeper correction grow

As gold prices retreat from record highs, Indian households are selling old jewellery to lock in gains. The trend is lifting organised recycling volumes and may help reduce reliance on imports.

In Short

• Gold prices have fallen sharply from record highs recently
• Indians are selling old jewellery fearing further price drops
• Gold under pressure globally due to US rate hike expectations

With gold prices declining after touching record levels, many households are rushing to cash in their old jewellery while prices remain attractive.

In other words, with MCX gold trading around Rs 1,44,199 per 10 grams on Friday morning, well below its all-time high. The fear is simple: if gold prices fall further, they may get less value for their jewellery.

According to the India Bullion & Jewellers Association (IBJA), Indian households sold nearly 50 tonnes of old gold during the April-June quarter, a 43% jump from a year ago, as many rushed to book profits.

WHY ARE PEOPLE SELLING GOLD?

Gold prices touched record highs earlier this year before witnessing a sharp correction in recent weeks.

Many consumers now believe prices may have peaked and could decline further.

According to the ET report, with gold recently trading around Rs 1.4 lakh per 10 grams and expectations in the market that prices could retreat to around Rs 1.2 lakh, households are choosing to monetise old jewellery rather than hold on to it.

"Indian consumers are leveraging the high price of gold for liquid cash," Surendra Mehta, National Secretary at IBJA, told ET. He added that fears of a further correction are prompting many households to sell their gold and encash their gains.

GOLD UNDER PRESSURE GLOBALLY

The selling trend comes as gold prices remain under pressure in international markets.

Spot gold slipped on Monday as renewed tensions involving the US and Iran pushed crude oil prices higher, while expectations of further US Federal Reserve interest rate hikes weighed on the precious metal.

Higher interest rates generally reduce the appeal of gold because the metal does not offer any fixed returns, prompting investors to move towards interest-bearing assets.

RECYCLING BUSINESS GETS A BOOST

The surge in old gold sales is also benefiting India's organised gold recycling industry.

Instead of lying idle in lockers, old jewellery is being brought back into the formal economy, refined into pure gold and supplied to jewellery manufacturers.

Muthoot Exim reported a 40% increase in old gold volumes across its network of more than 100 Gold Points.

"Consumers are becoming more comfortable monetising idle gold through organised and transparent channels," Keyur Shah, CEO of Muthoot Exim, told ET.

WHY THIS MATTERS FOR INDIA

India is one of the world's largest consumers of gold but imports most of the precious metal it uses.

According to the report, India imported gold worth around $72.4 billion in FY26. Recycled gold contributed an estimated 125-150 tonnes in 2025, and industry estimates suggest this could rise to 200-250 tonnes this year if the current trend continues.

With Indian households estimated to hold nearly 30,000 tonnes of gold, industry executives believe organised recycling can reduce the country's dependence on imports while helping consumers unlock the value of idle assets.

SHOULD YOU SELL YOUR GOLD?

The recent surge in gold sales shows that many households are choosing to book profits after the record rally.

However, financial planners generally advise that the decision should depend on individual financial needs rather than short-term price movements.

For those who no longer use old jewellery, the current price levels may offer an opportunity to monetise 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 experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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