The sharp rise in gold prices during the first half of 2026 encouraged many people across India to sell their old and unused jewellery. In Gujarat, residents are estimated to have sold around ₹3,804 crore worth of scrap gold between January and June, taking advantage of record-high prices.
However, despite the increase in cash sales, Gujarat’s contribution to the country’s scrap gold market remained relatively small. Industry experts say this is because many people in the state prefer to treat gold as a long-term investment rather than sell it for immediate financial needs.
The estimates are based on the latest World Gold Council (WGC) report on gold demand trends and assessments by the India Bullion and Jewellers’ Association (IBJA).
India Sold 50.4 Metric Tonnes of Scrap Gold
According to the World Gold Council, Indians sold a total of 50.4 metric tonnes (MT) of scrap gold during the first six months of 2026.
Based on average quarterly prices on the Multi Commodity Exchange (MCX), this recycled gold was worth approximately ₹76,087 crore.
IBJA estimates that Gujarat accounts for nearly 5% of India’s scrap gold market, which puts the state’s estimated share at around ₹3,804 crore during the same period.
Why Gujarat’s Share Was Lower Than Other States
Although gold prices reached record levels, experts believe Gujarat witnessed fewer outright gold sales compared to many other parts of the country.
Haresh Acharya, Director of IBJA, said people in Gujarat generally have an investment-oriented mindset when it comes to gold.
According to him, many families prefer to hold on to their gold as a long-term asset instead of selling it whenever prices rise. However, those who urgently needed money took advantage of the historic price rally and sold their jewellery to meet financial requirements.
He also noted that states such as Delhi, Uttar Pradesh, Bihar, Tamil Nadu, Andhra Pradesh, Kerala and Punjab saw significantly higher levels of gold liquidation than Gujarat.
Record Gold Prices Encouraged Many Families to Sell
Gold prices in Ahmedabad climbed to an all-time high of ₹1.79 lakh per 10 grams on January 29, making it an attractive time for people to cash in on old jewellery.
Many households sold ornaments that had been lying unused for years, taking advantage of the exceptional prices available in the market.
However, the World Gold Council pointed out an interesting trend. While the overall value of recycled gold increased sharply because prices were much higher, the actual quantity of gold being sold declined.
This means fewer people sold gold by weight, but those who did received much higher amounts because of the record prices.
Many Preferred Exchange or Gold Loans Instead of Selling
The report also found that a large number of consumers chose alternatives to outright selling.
Instead of selling their jewellery permanently, many people:
Exchanged old jewellery while purchasing new ornaments.
Pledged their gold to take loans against it.
Continued holding their gold, expecting prices to rise even further in the coming months.
These options allowed households to benefit from high gold values without completely parting with their precious jewellery.
High Prices Also Reduced Jewellery Purchases
While soaring gold prices encouraged some people to sell, they also discouraged many from buying new jewellery.
According to the World Gold Council, India’s jewellery consumption fell by 17% year-on-year during the first half of 2026.
Jewellery demand dropped to 141.2 metric tonnes, compared to 170.4 metric tonnes during the same period last year.
Consumers increasingly shifted towards lighter-weight jewellery and lower-carat ornaments to keep purchases affordable amid rising prices.
Buyers Waiting for Prices to Come Down
Jigar Soni, President of the Jewellers’ Association of Ahmedabad, said the steep increase in gold prices has significantly affected jewellery purchases.
According to him, many customers have postponed buying jewellery, hoping prices will soften in the coming months. He expects demand to improve around Rakshabandhan and the festive season if gold prices become more stable.
Scrap Gold Sales in India: Key Figures
During the first half of 2026, India sold a total of 50.4 metric tonnes (MT) of scrap gold, according to the World Gold Council. In the first quarter (January to March), people sold 31.2 MT of scrap gold. With the average MCX gold price at ₹1,51,105.5 per 10 grams, the total value of these sales reached ₹47,144.9 crore.
In the second quarter (April to June), scrap gold sales declined to 19.2 MT, while the average MCX gold price remained high at ₹1,50,744.9 per 10 grams, resulting in sales worth ₹28,943 crore.
Overall, despite the drop in the quantity of gold sold during the second quarter, the total value of scrap gold sold in the first six months of 2026 stood at an impressive ₹76,087.9 crore, mainly due to the record-high gold prices.
The data highlights that while the volume of scrap gold sold declined in the second quarter, the overall value remained extremely high because gold prices stayed close to record levels.
Gujarat Continues Balanced Approach Towards Gold
Bullion traders say Gujarat continues to witness healthy gold exchange transactions alongside selective cash sales. Rather than selling all their jewellery, many households are carefully balancing immediate financial needs with the expectation that gold prices could continue to rise.
Overall, the first half of 2026 reflected two contrasting trends. Record-high prices encouraged many families to unlock the value of idle jewellery, yet a large section of consumers chose to keep their gold, exchange it for new ornaments, or use it to secure loans instead of selling it outright. This cautious approach, especially in Gujarat, highlights the state’s long-standing view of gold as a valuable long-term investment rather than simply a source of quick cash.
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