Gold Recycling Hits Three-Year Low in India Despite Record-High Prices
Gold recycling in India has hit a three-year low, despite domestic prices rising nearly 60% year-over-year. According to the World Gold Council (WGC), net gold recycling fell to 19 tonnes in Q2, down 38% from the previous quarter and 17% from a year earlier. This trend may seem counterintuitive, as higher gold prices typically encourage households to sell old jewellery and realize gains.
Instead of selling their gold outright, Indians are increasingly opting for other methods of extracting value from their holdings. Borrowing against gold has become a popular option, with outstanding retail gold loans with banks standing at around Rs 5.1 lakh crore at the end of May 2026, up 105% from a year earlier.
The WGC notes that consumers may be holding on to their gold in anticipation of further price increases or due to its broader financial purpose as a store of wealth. The shift towards value-conscious buying is also evident, with buyers increasingly opting for lighter-weight and lower-carat jewellery, and exchange offers becoming more popular.