Gold recycling gains momentum during festivals: Muthoot Exim sees uptick across urban and rural India

As India enters the festive season, gold recycling is emerging as a notable trend, with more consumers opting to trade or recycle old jewellery and idle gold. Keyur Shah, CEO of Muthoot Exim, shared insights on how this trend is shaping the jewellery and gold retail industry.

Why consumers are turning to gold recycling

Shah said, “Sudden spikes in gold prices often result in customers waiting for the market to stabilise. In the current scenario, we have witnessed an uptick in purchase of scrap or old gold in our Muthoot Gold Point branches.”

Consumers are motivated by the financial benefits of organised recycling channels.

“When customers recycle gold through organised platforms, they are assured of complete transparency, fair pricing, and instant liquidity. Unlike unorganised channels where hidden deductions are common, we provide purity-tested valuations in front of the customer. This gives them peace of mind that their gold has been recycled responsibly,” he explained.

Urban-rural awareness

While awareness of gold recycling is stronger in urban centres, rural India is catching up rapidly.

Shah noted, “Rural India is rapidly catching up, particularly with greater outreach and transparency offered through initiatives like Muthoot Gold Point centres. With rising digital penetration and customer education, we see growing trust in gold recycling even outside metro cities.”

Impact on jewellery retail

Gold recycling is influencing the jewellery market by creating a more sustainable ecosystem.

“Jewellers benefit as customers bring in old jewellery to recycle or exchange, which directly translates into fresh purchases. It also reduces dependency on imports and saves energy, since less gold needs to be mined,” Shah said.

Many jewellers are encouraging recycling by offering exchange schemes and incentives. “Many organised sector jewellers are actively promoting them,” Shah added.

Looking ahead

With rising consumer awareness and the financial benefits of organised recycling, gold recycling is expected to grow, especially during peak festive seasons.

The trend supports customers seeking value from idle assets while strengthening the organized jewellery market.