The exchange of old gold for new jewellery is gaining importance in India's festive-season market as consumers look for ways to manage the cost of purchases amid elevated gold prices.
According to the World Gold Council's October 2026 India market update, old-gold exchange transactions increased by more than 10 per cent year-on-year and accounted for over 50 per cent of sales for some jewellery retailers.
Editorial Insight
Key Highlights
Important points readers should notice.
Old-gold exchange transactions increased by more than 10 per cent year-on-year.
Exchanges accounted for over 50 per cent of sales for some jewellery retailers.
Domestic gold prices averaged Rs 1,48,891 per 10 grams in Q3 2026.
Average domestic gold prices remained 45 per cent higher year-on-year.
India's jewellery demand declined 20 per cent to 99.9 tonnes.
Jewellery demand value increased 16 per cent to Rs 1,487 billion.
Jewellers are also focusing on lightweight designs, fresh collections and promotional offers to attract buyers. These options are allowing consumers to purchase new ornaments while managing their jewellery budgets.
Gold prices eased during the third quarter of 2026 from their January peak. However, domestic gold prices averaged Rs 1,48,891 per 10 grams during the July-September quarter, remaining 45 per cent higher than the corresponding period in 2025, according to the World Gold Council's November 3 report.
The higher prices have affected the quantity of jewellery purchased, even as consumers continue to spend substantial amounts.
Editorial Analysis
Why This Matters
The growing use of old-gold exchanges shows how Indian households are adapting jewellery purchases to elevated gold prices. The trend also highlights the role of existing household gold holdings in supporting new jewellery transactions.
India's jewellery demand stood at 99.9 tonnes in the third quarter of 2026, registering a 20 per cent decline compared with the same period last year. However, the value of jewellery demand increased by 16 per cent to Rs 1,487 billion.
The figures highlight the difference between gold purchases by volume and spending by value. Consumers are spending more money despite purchasing smaller quantities of gold.
Old-gold exchange programmes provide buyers with an option to adjust the value of existing ornaments against new jewellery purchases. This can reduce the additional payment required, depending on the weight, purity, valuation and applicable exchange conditions.
The World Gold Council also reported that jewellers were promoting lighter-weight pieces and fresh designs to support consumer demand during the festive and wedding season.
The trend reflects changing purchasing patterns in India's jewellery market, where traditional gold buying continues alongside greater attention to affordability. With domestic gold prices still significantly higher than a year earlier, old-gold exchanges and lightweight jewellery are becoming important features of the retail market.
