Old is gold indeed: Why jewellery exchange plans are a hit with Indians

India Today

5 days ago

Gold prices hovering at an all-time high of around Rs 1 lakh for 24-carat gold per 10 grams has put affordability of the yellow metal in question, with many consumers now preferring to make purchases by exchanging their old jewellery.'We see this trend gain real traction in recent times. Currently, nearly 25 per cent of our consumer base actively opts for exchange programmes when buying jewellery. This was much lower a few years ago,' says Rajesh Rokde, chairman of the All India Gem and Jewellery Domestic Council (GJC).advertisementSandeep Kohli, CEO of jewellery brand Indriya, affirms that gold exchange programmes have become an important driver of business as more consumers seek to get value out of their old jewellery and use that, along with additional money, to buy new designs. 'An old gold exchange programme helps consumers part-fund their aspiration of buying new jewellery,' says Kohli.This is a win-win for all—the brand and the consumers. 'Consumers get a new design without having to pay the full amount, and they are giving away old pieces of jewellery. A jeweller gets a customer who would have otherwise not purchased if having to pay the full amount,' says Kohli.
Another key reason driving this demand is the hallmarking of gold, which has been made mandatory by the government, making consumers feel secure in the value of the gold they are selling and receiving. 'With hallmarking, gold is no longer a locked investment but a usable asset—one that retains worth and can be repurposed into new designs that suit evolving tastes and occasions,' says Rokde.Rokde, though, offers a word of caution. Consumers should ensure their gold is hallmarked. They should also verify exchange policies and understand the making charges involved before opting in. 'Clarity is everything in these programmes,' he emphasises.On vetting old gold exchange offers, Kohli says that jewellers deduct a certain percentage for old gold that is below 22 karat. If jewellery has a lower karat core and 22 karat on the surface, it would be difficult to detect without melting. Many times, customers realise the deduction only after their old gold is melted, which many a times leaves them with no option but to accept the deducted price of lower karat gold.Hence, it is important for customers to check for deductions before going for any old gold exchange offer, advises Kohli. For fairness, he adds, Indriya offers 100 per cent exchange value for the old gold at the day's prevailing rate irrespective of the karatage of the old jewellery.Subscribe to India Today Magazine- EndsTrending Reel