MUMBAI: Indians' enduring love for gold remains unwavering, but the steep prices of the yellow metal over recent quarters have prompted consumers to find ways to ease the burden on their pockets while preserving the heft and appeal of their jewellery. Instead of purchasing new gold, many are now recycling or exchanging the gold stored in their households to save money. Every time old jewellery is given to a retailer, it gets recycled, allowing consumers to reuse existing gold and reduce the need for imports. Government data shows that India's gold imports increased in value from $58 billion in FY25 to $72 billion in FY26.
Rise in Gold Exchange and Recycling
At P.N. Gadgil & Sons, the proportion of gold exchange and recycling has surged from 25-30% up to FY25 to approximately 50-60% in recent quarters, according to COO & CFO Aditya Modak. He explained that in such cases, old gold is typically taken as credit for purchase, with the remaining amount settled in cash. The volume of new gold purchases has seen a 30% decline in gram terms over recent quarters. "This shift indicates that rising gold prices and ongoing volatility have prompted consumers to increasingly opt for recycling and upcycling existing gold jewellery instead of purchasing entirely new pieces," said Modak.
Titan's Tanishq Leads the Way
Titan's Tanishq, which has been actively promoting exchange programmes, reported a 35% growth in both gold and studded products portfolios alongside new collections. "Over 30 lakh Indians have partaken of Tanishq's gold exchange programmes for years, recycling close to 1.7 lakh kg of gold," the brand stated in a note last year, emphasizing that recycling is not a new strategy. However, driven by volatile gold prices, the share of recycling has only grown recently. "Industry wide, there has been a significant increase in gold recycling," said Saumen Bhaumik, MD at Tata's CaratLane, where gold exchanges shot up by 15-20% more than usual in the March quarter.
Impact of Government Call and Changing Consumer Behavior
Industry executives anticipate that consumers will adjust their buying patterns following the Prime Minister's call to avoid non-essential gold purchases for a year. Bhaumik estimates that people may shift to lower gold caratages and opt for silver and light diamond jewellery for regular usage. "The brand might have to revise its medium to long-term forecast after assessing the impact over the next few weeks," said Modak. At BlueStone Jewellery, exchanges have doubled year-on-year, with the brand offering more benefits to consumers to ensure higher value, according to founder & CEO Gaurav Singh Kushwaha. Many consumers now view old jewellery not as something to simply store away but as an asset that can be redesigned into something more contemporary and wearable, said Ankur Daga, co-founder at Angara.
