Gold Rush: Indians Selling, But Also Buying Record Amounts

India's gold market is experiencing a paradoxical situation where Indians are selling more gold than ever, but also buying it in large quantities. According to the Indian Bullion and Jewellers Association, nearly 50 tonnes of old gold were off-loaded in the April-June quarter, a steep increase from last year.

The reasons for this phenomenon are complex and multifaceted. Some factors contributing to the sale of gold include the rising price of gold, fluctuations in prices, fear that prices will fall, and the younger generation treating gold as just another asset on which profits can be booked.

However, a larger question remains unanswered: whether the unprecedented sale of gold reflects a deeper economic malaise. While Indians are selling gold, they are also buying it in large quantities, with the World Gold Council estimating that investment demand and jewellery demand touched more than 140 tonnes during the January-March quarter.

Gold imports continue to be high, with India importing nearly USD 72 billion worth of gold in 2025-26, second only to crude oil. The government has tried various schemes to bring out the gold kept in vaults, but none have been successful.