Gold for cash: Indian households sold 50 tonnes of yellow metal in Apr-Jun quarter amid price crash fears, says report

Indian households looking to monetise their gold for liquid cash sold off close to 50 tonnes of the yellow metal in the April to June quarter this year amid growing fears of an imminent price crash, according to an Economic Times report.

Widely viewed as a safe haven investment, gold sales from domestic consumers have risen 43% year-on-year (YoY) in the April-June 2026 period so far, the report said, citing data from the India Bullion and Jewellers Association (IBJA).

Indian households held a whopping $5 trillion worth of gold a Kotak Institutional Equities research report found in March, with the precious metal making up a significant 65% of their non-property wealth. This is largely in form of gold jewellery, coins or bars for personal, cultural and traditional reasons.

Why are Indian consumers selling old gold?

The MCX gold rate on 29 June for August futures contracts was trading 0.32% lower at ₹1,44,130 per 10 grams at around 9.13 am. At time of writing, at 6 pm on 29 June, bullion data showed 24 carat gold cost at ₹1,43,220/10 grams. The expectation is that prices could slip as low as ₹1.2 lakh/10 grams, as per the report.

Consumers are choosing to book profits at current levels by selling old gold (coins, jewellery, etc.) in exchange for liquid cash, the report quoted IBJA national secretary Surendra Mehta say. “Indian consumers are leveraging the high price of gold for liquid cash. Though prices have fallen from a high of ₹1.8 lakh per 10 gm in the beginning of the year to ₹1.4 lakh, there is a fear among them that prices may further crash to ₹1.2 lakh, which is prompting them to sell gold to encash,” he told the paper.

The trend was also noted by Muthoot Exim, which directly buys old and unused gold from consumers, the report added. It reported a 40% increase in old gold volumes across its national network. “Consumers are becoming more comfortable monetising idle gold through organised and transparent channels. This not only helps them unlock value but also supports the domestic gold ecosystem by bringing precious metal back into circulation,” Keyur Shah, CEO of Muthoot Exim told the paper.

Gold recycling industry sees boost

The report further noted that this has boosted the country's gold recycling industry as “idle” gold is being brought back into circulation — creating domestic supply of the precious metal for refiners and jewellers. Muthoot Exim for example refines the gold it procures from domestic consumers into 24-carat pure gold for supply to jewellery and coin manufacturers, it said.

Thus, the conclusion from industry watchers was not overtly negative, it added, noting that the trend indicates gold is being viewed as a financial asset, instead of only remaining a cultural or traditional holding.

India is heavily dependent on imports for its gold supply, with around $72.4 billion worth sourced from abroad in FY26. Notably, recycled gold comprised around 125-150 tonnes in 2025 and is expected to increase to 200-250 tonnes in 2026, at current resale trend numbers, as per the report.

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