Kerala Consumers Turn to Old-Gold Exchanges Amid Record Gold Prices

The surge in global gold prices is prompting consumers in Kerala to recycle their old jewelry, leading to a significant increase in exchange-led purchases. According to jewellers, customers are opting for exchanges over paying in full with fresh money, particularly among families making wedding purchases and those shopping during the festive season.

World Gold Council notes that rising gold prices 'constrain affordability', with exchange-led purchases gaining traction. Industry body data reveals a 10%, 20% increase in exchange volumes, accounting for up to 70% of sales in some cases.

Joyalukkas chairman and managing director Joy Alukkas attributes nearly 70% of the company's jewelry sales to old-gold exchanges, highlighting 'a clear shift in consumer behavior'.