New Delhi, June 29 -- After gold prices retreated from record highs, many Indian households are choosing to sell their old jewellery while rates remain favourable.

MCX gold was trading at around Rs 1,44,199 per 10 grams on Friday morning, significantly below its lifetime peak. With concerns that prices may decline further, many are selling now to secure better returns. Data from the India Bullion & Jewellers Association (IBJA) showed that Indian households sold nearly 50 tonnes of old gold during the April-June quarter, marking a 43% increase compared to the same period last year as consumers rushed to book profits.

WHY ARE PEOPLE SELLING GOLD?

Gold reached unprecedented highs earlier this year before undergoing a sharp correction in recent weeks. As prices softened, many consumers began to believe the rally had peaked and that further declines could follow.

According to an Economic Times report, with gold recently hovering around Rs 1.4 lakh per 10 grams and market expectations pointing to a possible fall towards Rs 1.2 lakh, several households are opting to convert unused jewellery into cash instead of holding on to it.

"Indian consumers are leveraging the high price of gold for liquid cash," IBJA National Secretary Surendra Mehta told ET. He said fears of a deeper correction have encouraged many families to sell their gold and lock in gains.

GLOBAL PRESSURE ON GOLD

The domestic selling spree coincides with weakness in international gold markets.

Spot gold declined on Monday as renewed geopolitical tensions involving the US and Iran pushed crude oil prices higher. At the same time, expectations of further US Federal Reserve interest rate hikes continued to weigh on the precious metal. Higher interest rates typically reduce gold's appeal because it does not generate fixed returns, making interest-bearing assets more attractive.

GOLD RECYCLING SECTOR BENEFITS

The rise in sales of old jewellery has also boosted India's organised gold recycling industry.

Instead of remaining unused in household lockers, old ornaments are being recycled, refined into pure gold and supplied back to jewellery manufacturers.

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

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

WHY THIS IS SIGNIFICANT

India remains one of the world's largest gold consumers but depends heavily on imports to meet domestic demand.

As per the ET report, the country imported gold worth about $72.4 billion in FY26. Recycled gold contributed an estimated 125-150 tonnes in 2025, and industry estimates suggest this could increase to 200-250 tonnes this year if the current trend continues.

With Indian households estimated to own nearly 30,000 tonnes of gold, industry experts believe greater participation in organised recycling could help reduce import dependence while allowing consumers to unlock the value of unused assets.

SHOULD YOU SELL YOUR GOLD?

The recent increase in gold sales reflects a growing trend of households booking profits after the metal's record-breaking rally. However, financial experts generally recommend that the decision to sell should be based on individual financial goals rather than short-term price fluctuations.

For those with old jewellery that is no longer in use, current price levels may present a good opportunity to generate cash. At the same time, long-term investors may still prefer to retain gold as a safeguard against inflation, geopolitical risks and market uncertainty.

Published by HT Digital Content Services with permission from Millennium Post.