Gold sales: Due to gold prices being at record high, efforts are always made to raise cash by selling old jewelery in India. But recent figures show that Indian consumers are becoming more rational and taking gold at higher rates by mortgaging gold. But they are not selling old jewelery.

The amount of gold sales decreased

In the January-March 2025 quarter, the demand for jewelery in India declined by 25 percent to 71 tonnes. Which was the lowest in the last four years. Each time old gold sales increase due to high gold prices, but gold sales have decreased in these three months.

Loans are easily available instead of gold.

According to a report by the World Gold Council, Indians sold 26 tonnes of old gold between January and March. Which was 38.3 tonnes in this quarter in 2024. That is, there has been a decrease of about 32 percent. According to the Gold Council report, the high price of gold indicates that earlier people used to sell immediately due to economic recession or financial nervousness. The trade war launched by US President Donald Trump is likely to cause recession or economic recession in the US and many other countries around the world. But the economic decline between declining inflation and declining interest rates in India is relatively low. However, the council said that since loans are easily available in lieu of gold, people are also choosing this option.

 

According to the council data, bank loans increased by 87 percent in February. According to the data of the Reserve Bank of India, till 21 February 2025, the total outstanding loans on jewelery and gold are Rs 1,91,198 crore, which was Rs 1,02,008 crore in February 2024. Gold Council data shows that Indians sold 114.3 tonnes of gold during the calendar year 2024 amid the ongoing rise in gold prices. During this period, the loan in lieu of gold increased by Rs 71,858 crore to Rs 1,72,581 crore by the end of December 2024.