For Indian families, gold is not just an ornament but is considered the most reliable companion in times of trouble. But at present a completely opposite and surprising scene is being seen in the bullion markets of the country. Amidst the skyrocketing prices of gold, people are now fearing a major market crash. Due to this fear, common families across the country are taking out old gold from their homes and lockers and flocking to jewelers' shops to get it cashed. According to a recent report, in this quarter Indians made bumper profits by selling a record 50 tonnes (about 50,000 kg) of old gold.
According to jewelery industry experts and big bullion traders, generally it has been the rule of the Indian market that people bring their old jewelery during weddings or festival seasons and get new jewelery made by exchanging it. But this time the trend has completely changed. 7 out of 10 customers coming to the shops are not asking for new jewelery in exchange for gold, rather they are asking for liquid cash or bank transfer after getting the purity of gold checked. Compared to the same period last year, there has been an increase of more than 43 percent in the cases of cashing in by selling old gold.
This fear has not suddenly arisen in the minds of the general public and investors. There are many big global and domestic reasons behind this. After touching its historical high (all-time high) of Rs 1.80 lakh per 10 grams in the international markets, gold is now struggling to hold on to the upper levels. At present the price of gold is Rs 1.40 lakh. The fear is that prices may soon reach Rs 1.20 lakh. Due to the ongoing tension in the Middle East and changes in the policies of global central banks, experts believe that a major downward correction (fall) can occur in gold at any time. Due to which common people feel that this current price is the best to sell gold and earn maximum profit, because once the prices start falling, then the profit earned will also go away.
Liquidity with jewelers is increasing due to customers bringing old gold back to the market (Gold Recycling), but there is a huge slowdown in the demand for new gold (Fresh Demand). Despite the wedding season, people are avoiding buying heavy jewellery. If old gold continues to enter the market at this pace, the domestic supply of gold will increase, due to which further pressure on prices may be seen in the coming days.
Muthoot Exim CEO Keyur Shah said in an ET report that customers are now feeling more comfortable in making money by selling idle gold through organized and transparent means. This not only helps them get the right price for their gold, but also strengthens the domestic gold ecosystem by reusing the precious metal.
The company buys old and unused gold directly from customers, refines it into 24-karat pure gold and supplies it to jewelery and coin makers. This process reduces dependence on new mining and also increases the availability of this precious metal in the country.
This change is happening at a time when India is still largely dependent on imported gold. The country imported gold worth about $72.4 billion in fiscal year 2026, while the amount of gold recycled in 2025 was estimated at 125-150 tonnes. Industry estimates suggest that if current trends continue, the amount of gold recycled could increase to 200-250 tonnes in 2026. Indian households are estimated to have about 30,000 tonnes of gold, so people associated with the industry see organized recycling as a big opportunity to increase resource efficiency and reduce dependence on imports.
Augmont has expanded its 'Gold for All' network to 114 centers across multiple states, enabling customers to value, recycle and monetize their gold through organized channels. Augmont Director Ketan Kothari said that India has the largest stock of gold in homes in the world, yet a large part of it remains lying idle.
