KOCHI: The surge in global gold prices is prompting a growing number of consumers in the state to recycle their old jewellery, with exchange-led purchases emerging as a major driver of gold sales.
Jewellers say customers are increasingly opting to exchange their ornaments for new designs rather than paying in full with fresh money. The trend is particularly pronounced among families making wedding purchases and those shopping during the festive season.
World Gold Council points out that rising gold prices “constrain affordability”, with exchange-led purchases gaining traction. According to the industry body, jewellery retailers reported a 10%–20% increase in exchange volumes, with such purchases accounting for up to 70% of sales in some cases.
At Joyalukkas, nearly 70% of jewellery sales are now driven by old-gold exchanges, said chairman and managing director Joy Alukkas.
“Old-gold exchange has become an increasingly important part of jewellery purchases, particularly as customers look to unlock the value of gold they already own and upgrade to new designs. Today, nearly 70% of our jewellery sales are driven by old gold exchange. This reflects a clear shift in consumer behaviour, where families are increasingly choosing to recycle their existing gold rather than make the entire purchase through fresh funds,” he said.
“We believe this also highlights the important role that the organised jewellery sector can play in bringing household gold back into circulation through transparent valuation and trusted exchange processes,” Joy added.
Exchange of gold boosts retail sales
The trend is also gaining momentum at Kalyan Jewellers. Executive director Ramesh Kalyanaraman said recycled gold contributed more than 46% of the company’s revenue in the first quarter of FY27, rising to over 55% in June.
“The increase in recycled gold as a share of our revenue is the result of a deliberate strategic shift, rather than a trend driven purely by consumer demand,” he added. He said the increase was partly driven by the firm’s ‘Shine with India’ gold recirculation campaign. “Consistent consumer engagement has also helped reposition exchange of old jewellery as a value-accretive choice, rather than a last-resort option,” Ramesh said.
S Abdul Nazar, general secretary of the Gold & Silver Merchants Association, told TNIE that buying old gold makes sense in the current context, with gold prices having surged to record highs. “In January, one sovereign of jewellery was worth around Rs 70,000-Rs 80,000, and that has now crossed `1,14,000. Buying gold metal through official channels is cumbersome compared with buying old gold from customers. Customers also get 98-99% of the day’s gold rate and have to spend only the difference and making charges when they buy new jewellery,” he said.
India was the world’s largest gold jewellery market in the quarter (April-June CY2026), accounting for 27% of global demand.
According to industry body World Gold Council, Kerala significantly contributes to India’s gold demand: 25-28% of 600-800 tonnes annual consumption.