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Sat, 12 Sept 2026
10:52:10 am
Sat, 12 Sept 2026
10:52:10 am
Synopsis
Indian households sold nearly 50 tonnes of gold in the April–June 2026 quarter as fears of a further price correction triggered a 43% jump in old gold sales. Here's why Indians are selling gold, how it impacts gold prices, recycling, imports and investors.
Indian households sold nearly 50 tonnes of gold during the April–June 2026 quarter, marking a 43% year-on-year surge in old gold sales as consumers rushed to book profits amid fears of a deeper correction in** gold prices.** According to data from the** India Bullion and Jewellers Association** (IBJA), the trend highlights changing investor behaviour as more Indians treat gold as a liquid financial asset rather than simply a** traditional store of wealth**.
The increase in gold liquidation comes after domestic gold prices fell from around ₹1.80 lakh per 10 grams to nearly ₹1.43–1.44 lakh per 10 grams, prompting households to encash idle gold before prices potentially decline further. Industry experts believe concerns that gold could fall towards ₹1.20 lakh per 10 grams encouraged many investors to secure gains instead of holding their precious metal for the long term.
The sharp rise in old gold sales is also boosting India's gold recycling industry by bringing more unused household gold back into circulation. Refined recycled gold is being supplied to jewellers and coin manufacturers, helping improve domestic bullion availability while reducing dependence on imported gold. The trend also highlights a shift in consumer behaviour, with more Indians increasingly viewing gold as a liquid financial asset rather than only a traditional store of wealth.
| Particulars | Details |
|---|---|
| Gold Sold | Nearly 50 Tonnes |
| YoY Growth | 43% |
| Source | IBJA |
| Main Reason | Fear of Further Gold Price Decline |
| Household Gold Holdings | Around $5 Trillion |
| Share of Non-Property Wealth | 65% |
| Impact | Effect |
|---|---|
| Gold Prices | Profit Booking Increased |
| Jewellery Market | More Recycled Gold Supply |
| Gold Imports | Import Dependence May Ease |
| Refiners | Higher Domestic Supply |
| Consumers | Better Liquidity |
Gold prices have corrected sharply from their recent peak, prompting many households to lock in profits. Industry experts say concerns that prices could fall further towards ₹1.20 lakh per 10 grams have accelerated old gold sales.
| Gold Price Trend | Value |
|---|---|
| Peak Price | Around ₹1.80 Lakh/10g |
| Current Price | Around ₹1.43–1.44 Lakh/10g |
| Expected Support | Around ₹1.20 Lakh/10g |
Higher old gold sales are increasing domestic gold recycling, helping refiners convert old jewellery into pure gold for jewellers and coin manufacturers while reducing dependence on imports.
| Metric | Details |
|---|---|
| Current Trend | Higher Gold Recycling |
| Raw Material | Old Jewellery, Coins & Bars |
| Beneficiaries | Refiners & Jewellers |
| Impact | Higher Domestic Gold Supply |
Organised gold buyer Muthoot Exim reported a 40% increase in old gold procurement, reflecting rising consumer preference for regulated gold-buying platforms.
| Company | Growth |
|---|---|
| Muthoot Exim | 40% Increase in Old Gold Volumes |
India imported $72.4 billion worth of gold during FY26, although recycling is expected to contribute a larger share of domestic supply this year.
| Gold Supply | Figures |
|---|---|
| Gold Imports (FY26) | $72.4 Billion |
| Recycled Gold (2025) | 125–150 Tonnes |
| Expected Recycling (2026) | 200–250 Tonnes |
The surge in** old gold sales** reflects profit booking rather than weakening demand for gold. Many households are monetising jewellery and coins after gold prices corrected from record highs, while expectations of further price declines have accelerated selling. Despite the recent correction, analysts believe long-term demand for gold remains supported by global economic uncertainty, central bank purchases, inflation concerns, and continued demand from emerging markets. If prices stabilise, buying interest could gradually return in the coming months.
| Market Indicator | Outlook |
|---|---|
| Short-Term Trend | Volatile |
| Long-Term Trend | Positive |
| Main Driver | Profit Booking |
| Key Risk | Further Price Correction |
| Long-Term Support | Inflation & Safe-Haven Demand |
Financial experts believe investors should avoid making emotional decisions based on short-term price movements. Those holding gold for long-term wealth preservation may benefit from staying invested, while new buyers could monitor price corrections before accumulating gradually. Diversification and disciplined investing remain more important than reacting to temporary market volatility.
| Investor Type | Suggested Approach |
|---|---|
| Existing Investors | Hold or book partial profits based on financial goals |
| New Investors | Consider gradual accumulation during corrections |
| Short-Term Traders | Watch price volatility closely |
| Long-Term Investors | Focus on diversification rather than timing the market |
| Highlights | Details |
|---|---|
| Gold Sold | Nearly 50 Tonnes |
| Sales Growth | 43% YoY |
| Current Gold Price | Around ₹1.43–1.44 Lakh/10g |
| Main Trigger | Price Crash Fears |
| Gold Imports FY26 | $72.4 Billion |
| Expected Recycling | Up to 250 Tonnes |
Why are Indian households selling gold?
Consumers are booking profits after gold prices corrected from record highs and expect prices to decline further.
How much gold was sold?
Nearly 50 tonnes during the April–June 2026 quarter.
How much did gold sales increase?
Old gold sales rose 43% year-on-year, according to IBJA.
Why is gold recycling increasing?
Higher resale of old jewellery is supplying more recycled gold to refiners and jewellers.
How much gold does India import?
India imported around $72.4 billion worth of gold during FY26.
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