Jewellers expect rise in old gold exchange as prices and import duties stay high

India’s jewellery buying pattern is expected to shift, not because demand is weakening, but as consumers adapt to higher gold prices and elevated import duties by changing how they buy rather than whether they buy.

Across the industry, jewellers and gold financiers are already expecting stronger interest in old gold exchange and recycling, as households look to unlock value from existing holdings instead of making entirely fresh purchases.

“We are hopeful that many consumers will bring out their old-unused gold and put it to use,” said Keyur Shah, CEO of Muthoot Exim, the precious metals vertical of the 132-year-old Muthoot Pappachan Group.

He added that customers are expected to exchange old gold for new jewellery or use it for liquidity needs such as selling or pledging.

He also highlighted the large stock of idle gold in India—over 32,000 tonnes held in households and temple trusts—suggesting that even limited recycling could significantly ease import dependence in a high-duty environment.

Jewellers expect this behaviour to gain traction rather than emerge as a one-off trend. With affordability pressures persisting, exchange programmes are expected to help consumers continue upgrading jewellery without bearing the

full impact of elevated prices.

Neil Sonawala, MD at Zen Diamond India, the Indian arm of the European-designed diamond jewellery brand, said buyers are becoming more value-conscious and are expected to “look to unlock value from their existing jewellery collections rather than significantly increasing fresh spending.”

In practice, this is expected to translate into higher exchange-led purchases and remodelled designs, particularly during weddings and festive buying cycles.

At the same time, the industry is also expected to witness a parallel shift in product preference.

According to Visshnupriya Singh, CEO of Svariya Jewels, an Indian jewellery brand specialising in sustainable, lab-grown diamond jewellery, the high-price environment is expected to accelerate demand for lighter, more wearable jewellery formats, especially among younger consumers.

She noted a growing preference for demi-fine categories such as 9KT and 14KT jewellery, as millennials and Gen Z view jewellery as everyday fashion rather than solely a long-term investment.