Gold exchanges are increasingly becoming the primary method for purchasing jewellery in India, moving beyond a distress-driven choice. As gold prices remain high, customers are now utilizing their existing holdings as a form of currency to maintain their investments in gold.
This change is evident among large organized retailers, indicating a fundamental shift in the financing of gold consumption. At Titan’s jewellery division, Tanishq, more than half of total transactions now come from exchange-led purchases, with this percentage continuing to rise monthly.
CEO Arun Narayan noted that consumers are actively repurposing unused gold, a strategy advantageous for both households and the wider economy. “It is in the interest of consumers to reuse what is not being worn, and in the interest of the country to reduce imports,” he stated, highlighting that Indian households hold over 25,000 tonnes of gold, while the country’s annual imports range between 750 to 800 tonnes.
This behavioural trend is reflected across the industry. Dr. Joy Alukkas, Chairman and Managing Director of the Joyalukkas Group, observed a steady increase in exchange-led transactions over the years. “Rising gold prices have encouraged customers to monetise their existing holdings, which has supported continued buying even in a high-price environment,” he remarked.
Dr. Alukkas pointed out that exchange-led purchases are increasing faster than overall sales, providing a practical means to navigate rising prices. This trend is particularly evident among middle-income consumers looking for affordability, though premium buyers are also increasingly using exchanges to enhance their jewellery collections.
The trend is even more pronounced at Senco Gold & Diamonds. Managing Director and CEO Suvankar Sen reported that exchanges now make up about 45 percent of overall sales, an increase from approximately 22 percent two years ago. “Customers are not stepping away from gold despite higher prices; they are simply becoming more efficient in how they buy,” he explained, noting that exchange-led transactions are outpacing overall sales growth.
Sen added that this trend reflects a broader transformation in consumer mindset. “Customers increasingly see their gold as an active asset rather than something idle,” he stated. While some customers upgrade to higher-value, design-focused pieces, others leverage exchanges as a tool for managing cash outflows while continuing to purchase gold.
These developments suggest that gold exchanges are becoming an integral aspect of how Indians engage with gold, blurring the line between investment and adornment.
Published on April 19, 2026.
