Why are Indians selling their gold? 50 tonnes offloaded in just three months: EXPLAINED

Wed July 01 2026

Amid falling gold prices in India, people are hurrying to sell their old gold to cash out before its prices decline further from record levels seen earlier this year. Growing concerns that gold may have already peaked are prompting Indian households to liquidate their holdings rather than hold on to them. This comes at a time when India largely remains dependent on imported gold.

During FY26, the country imported gold worth nearly USD 72.4 billion, while recycled gold contributed an estimated 125-150 tonnes in 2025. Industry projections suggest recycled gold volumes could rise to 200–250 tonnes in 2026 if the current pace continues.

Data from the India Bullion & Jewellers Association (IBJA) shows that around 50 tonnes of old gold were sold between April and June, marking a huge 43 per cent increase as compared to the same period last year. With gold prices retreating to about Rs 1.4 lakh per 10 grams and expectations of a further decline to Rs 1.2 lakh. As a result, many consumers began opting to monetise their gold and secure profits rather than exchange old jewellery for new pieces.

Sharp rise in gold business

The rising trend has also provided momentum to the organised gold recycling industry of India, as high prices are stimulating citizens across Indian households to bring idle gold into the market instead of leaving it unused. In response, Industry executives stated that consumers are increasingly seeing gold as a financial asset that can be converted into cash when prices are favourable. It ensures a continuous supply of recyclable gold for refiners and jewellers.

Firms involved in buying old gold are also seeing a sharp rise in business. Muthoot Exim reported a 40 per cent increase in gold collections through its network of over 100 Gold Points spread across the country. Industry reports also indicated that the surge has provided a boost to the country's gold recycling industry as “idle” gold is being reintroduced into circulation, creating an additional domestic source of supply for refiners and jewellers.

Why are gold prices recovering?

Market experts said the recent recovery in gold prices has been driven by investors reassessing expectations around the US Federal Reserve's interest rate trajectory, alongside ongoing geopolitical uncertainties and fluctuations in crude oil prices. Internationally, Comex gold futures climbed to USD 4,044.80 per ounce. However, concerns persist after Iran reiterated its intention to maintain control over shipping through the Strait of Hormuz, a crucial route for global oil trade.

India remains highly dependent on imported gold, bringing in approximately USD 72.4 billion worth during FY26. Recycled gold accounted for an estimated 125–150 tonnes in 2025 and, according to industry projections, could rise to 200–250 tonnes in 2026 if current resale trends continue.

Source: https://www.wionews.com