New Delhi, June 16 -- Walk through the lanes of Mumbai's Zaveri Bazaar, one of India's oldest jewellery markets, and one trend is impossible to miss. Small stores prominently advertise: "Old gold exchanged here." The scene is similar in Chennai's T Nagar.

These stores, which specialise in gold exchange or offer cash for old jewellery, are seeing steadier customer traffic than stores showcasing fresh collections. Buyers are returning as global gold prices ease and 'adhik maas', the lunar month traditionally considered inauspicious for weddings and gold purchases, draws to a close.

Indians, the world's second-largest gold customers, are buying gold, but they are changing how they buy it. While jewellery exchanges are rising, demand for co...