Editor’s Note
**Editor’s Note:** As gold prices and import duties remain high, Indian consumers are shifting from traditional buying to exchanging and recycling old jewellery. This trend, particularly among younger buyers, is driving demand for lighter, lab-grown, and demi-fine pieces—signaling a structural change in how the market adapts to sustained cost pressures.
Jewellers expect rise in old gold exchange as prices and import duties stay high
Indian consumers adapt to high gold prices by exchanging and recycling old jewellery, favoring lighter, lab grown and demi fine pieces, especially among younger buyers
By Anshul
May 18, 2026, 2:14:45 PM IST (Published)
2 Min Read
India’s jewellery buying pattern is expected to shift, not because demand is weakening, but as consumers adapt to higher gold prices and elevated import duties by changing how they buy rather than whether they buy.
Across the industry, jewellers and gold financiers are already expecting stronger interest in old gold exchange and recycling, as households look to unlock value from existing holdings instead of making entirely fresh purchases.
He added that customers are expected to exchange old gold for new jewellery or use it for liquidity needs such as selling or pledging.
He also highlighted the large stock of idle gold in India—over 32,000 tonnes held in households and temple trusts—suggesting that even limited recycling could significantly ease import dependence in a high-duty environment.
Jewellers expect this behaviour to gain traction rather than emerge as a one-off trend. With affordability pressures persisting, exchange programmes are expected to help consumers continue upgrading jewellery without bearing the full impact of elevated prices.
In practice, this is expected to translate into higher exchange-led purchases and remodelled designs, particularly during weddings and festive buying cycles.
At the same time, the industry is also expected to witness a parallel shift in product preference.
According to Visshnupriya Singh, CEO of Svariya Jewels, an Indian jewellery brand specialising in sustainable, lab-grown diamond jewellery, the high-price environment is expected to accelerate demand for lighter, more wearable jewellery formats, especially among younger consumers.
She noted a growing preference for demi-fine categories such as 9KT and 14KT jewellery, as millennials and Gen Z view jewellery as everyday fashion rather than solely a long-term investment.