Indian Jewelers Turn to Cash-for-Gold as Gold Prices Bite

Major Indian jewelry retailers are expanding their cash-for-gold programs to mitigate the impact of high gold prices on new consumer demand. Companies like Kalyan Jewellers and Titan are offering consumers cash payouts for old gold, a service previously dominated by smaller local jewelers.

This shift is a tactical response to a challenging retail environment where elevated prices have made customers more cautious about buying new gold ornaments. By recycling gold from households, jewelers can secure inventory without relying solely on imports, which are subject to high duties and currency fluctuations.

Kalyan Jewellers reported that its cash-for-gold business grew to double digits in the June quarter of fiscal 2027. The company views this initiative as margin-accretive because the cost of purchasing recycled gold is typically lower than procuring fresh bullion from the market.