Why Are Indians Selling Their Gold? Falling Prices Trigger Panic Ahead of Wedding Season
A sharp decline in gold prices has prompted thousands of Indian families to sell their old jewellery, fearing that prices could fall even further. With the festive and wedding season just a few months away, many households are cashing out instead of holding on to their gold investments.
According to industry data, Indians sold nearly 50,000 kilograms (50 tonnes) of old gold in just the last three months, reflecting growing concerns over the precious metal's declining value.
Gold Prices Down Nearly Rs.36,000 from Peak
Gold Prices Down Nearly Rs.36,000 from Peak
Gold prices in India have witnessed a significant correction in recent months.
In January 2026, gold was trading at around Rs.1.80 lakh per 10 grams. Today, the price on the Multi Commodity Exchange (MCX) has fallen to approximately Rs.1,43,205 per 10 grams, a decline of nearly Rs.36,000 from its peak.
In January 2026, gold was trading at around Rs.1.80 lakh per 10 grams. Today, the price on the Multi Commodity Exchange (MCX) has fallen to approximately Rs.1,43,205 per 10 grams, a decline of nearly Rs.36,000 from its peak.
The steep fall has made many investors and households anxious about the possibility of further price corrections.
Indians Sold 50 Tonnes of Gold in Just 90 Days
According to the India Bullion and Jewellers Association (IBJA), consumers sold nearly 50 tonnes (50,000 kilograms) of old gold during the April-June quarter.
Indians Sold 50 Tonnes of Gold in Just 90 Days
According to the India Bullion and Jewellers Association (IBJA), consumers sold nearly 50 tonnes (50,000 kilograms) of old gold during the April-June quarter.
This represents a 43% increase compared to the same period last year.
Interestingly, most customers are opting for cash instead of exchanging their old jewellery for new ornaments. Many believe selling now could help them avoid further losses if gold prices continue to decline.
Interestingly, most customers are opting for cash instead of exchanging their old jewellery for new ornaments. Many believe selling now could help them avoid further losses if gold prices continue to decline.
Could Gold Fall to Rs.1.20 Lakh Per 10 Grams?
Industry experts believe the correction may not be over yet.
Yogesh Singhal, President of the All Bullion Jewellers Association, said gold prices could decline to around Rs.1.20 lakh per 10 grams in the near future.
Industry experts believe the correction may not be over yet.
Yogesh Singhal, President of the All Bullion Jewellers Association, said gold prices could decline to around Rs.1.20 lakh per 10 grams in the near future.
Similarly, Rajesh Rokde, Chairman of the All India Gem and Jewellery Domestic Council (GJC), expects prices in the bullion market to soften further, with gold potentially falling to around Rs.1.35 lakh per 10 grams.
He also projected that international gold prices may trade between $3,850 and $4,030 per ounce in the coming months.
He also projected that international gold prices may trade between $3,850 and $4,030 per ounce in the coming months.
Why Are Families Selling Their Gold?
One of the biggest reasons behind the surge in gold sales is the belief that prices have already peaked.
One of the biggest reasons behind the surge in gold sales is the belief that prices have already peaked.
Many households fear that if prices continue to fall, the value of the gold stored at home will decline further.
The approaching wedding and festive season is another factor driving sales. Families planning to purchase new jewellery are choosing to sell their old ornaments now rather than risk receiving a lower value later.
Gold Recycling Gains Momentum
Gold Recycling Gains Momentum
India continues to rely heavily on imports to meet domestic gold demand.
During the 2025-26 financial year, the country imported gold worth approximately $72.4 billion.
At the same time, an estimated 125 to 150 tonnes of gold re-entered the market through recycling in 2025.
During the 2025-26 financial year, the country imported gold worth approximately $72.4 billion.
At the same time, an estimated 125 to 150 tonnes of gold re-entered the market through recycling in 2025.
Industry experts believe that if the current trend continues, recycled gold could rise to 200-250 tonnes in 2026.
With Indian households estimated to hold nearly 30,000 tonnes of gold, experts say expanding gold recycling could reduce import dependence and improve resource utilization.
With Indian households estimated to hold nearly 30,000 tonnes of gold, experts say expanding gold recycling could reduce import dependence and improve resource utilization.
