Indians Unlocking Value of Idle Gold: Families Sell Gold for Home Purchases and Education Investments
They say old is gold, and for many families in India, this adage is becoming a reality as rising gold prices transform inherited jewellery into financial assets. Younger generations are increasingly viewing old gold not merely as sentimental heirlooms but as valuable resources to achieve significant life goals. This shift is evident in the stories of individuals who have chosen to sell their inherited gold to fund major purchases, such as homes and education.
Unlocking Gold’s Value
Take the case of a couple in Mumbai, who sold their inherited gold jewellery, including heavy bangles and a bridal necklace, for nearly Rs 20 lakh. This decision, though emotional, was driven by their goal of purchasing their first home in Navi Mumbai. The sale not only bolstered their down payment but also reduced their monthly home loan instalment by approximately Rs 20,000, allowing them to allocate funds for leisure activities.
Keyur Shah, CEO of Muthoot Exim, a gold recycling company, notes that younger consumers are motivated by milestones. They no longer feel compelled to hold onto old jewellery as an emotional burden. Instead, many are selling or exchanging these items to finance education, start businesses, or invest. Rajiv Popley, director of the Popley Group, observes that the recycling of inherited gold has become a significant aspect of their business, with stores now functioning as scrap-buying centres.
Rising Gold Prices
The trend of selling old jewellery is closely linked to the sharp rise in gold prices. Earlier this year, domestic gold prices surpassed Rs 160,000 for 10 grams, reflecting a 33% increase year-on-year in FY2025 and a staggering 60% in FY2026. This price surge has altered consumer behavior, with ICRA reporting a 21% decline in gold jewellery demand by volume in FY2026, while demand for gold bars and coins increased by about 22%.
Ajay Srivastava, founder of the trade think tank GTRI, explains that high gold prices are prompting households to sell or exchange old jewellery. Jewellery chains are expanding their recycling and exchange programs, reducing their reliance on newly mined gold. Despite this trend, the emotional value of gold remains significant. ICRA projects that India’s domestic jewellery industry will grow by around 15% in value this financial year, driven by high prices and investment demand, even as overall jewellery consumption by volume is expected to decline.
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