India’s festive season has seen a remarkable surge in gold jewellery exchanges, as record-high gold prices prompt consumers to trade in old ornaments for new designs. The trend, which began during Navratri, has accelerated through Dhanteras, marking a shift in how consumers are approaching festive gold purchases.

For leading jewellery brands, exchanges now make up a significant portion of sales. Tanishq expects nearly half of its total Dhanteras sales this year to come from gold exchanges, compared to around 35 percent last year. Reliance Retail’s gold jewellery sales through exchanges have risen to one-third of overall sales, up from 22 percent a year ago, while Senco Gold has seen its share grow to 45 percent from 35 percent.

The strong exchange activity is being driven by the sharp rally in gold prices, which touched Rs.1.34 lakh per 10 grams (including GST) this Dhanteras — up nearly 69 percent from last year’s Rs.80,469. With such steep gains, many consumers are choosing to recycle their existing gold rather than buy new stock, using the value of old jewellery to upgrade to fresh designs or offset the impact of higher prices.

Industry data shows Indian households collectively hold over 22,000 tonnes of idle gold, making them a major source of potential liquidity. This year’s exchange boom has unlocked part of that reserve, giving consumers a way to celebrate tradition without compromising on budgets.

While average bill values have increased due to higher prices, overall purchase volumes across the industry have declined. Retailers expect that as gold rates stabilise, volumes may recover, supported by continued consumer interest in modern designs and festive buying sentiment.

The pattern also highlights a growing acceptance of recycling and exchange as a smart financial move. Instead of viewing gold purely as a stored asset, consumers are now leveraging it for both style and savings — a shift that could redefine India’s festive gold-buying habits for years to come.