Heirloom Jewellery Recycling Surges in India Amid Customs Duty Hike on Gold
Old is gold again! Surge in heirloom jewellery recycling in India following a customs duty hike
Hindustan Times
Image: Hindustan Times
Following a significant increase in customs duty on gold and silver from 6% to 15%, many families in India are opting to recycle heirloom jewellery instead of purchasing new gold. This trend, driven by rising gold prices and economic concerns, is notably strong in Tier 2 cities like Lucknow and Kanpur.
- 01The Indian government raised customs duty on gold and silver to 15% to curb imports and conserve foreign exchange.
- 02Many families are repurposing heirloom jewellery, citing higher purity and cost-effectiveness compared to new gold.
- 03Jewellers report a rise in recycling requests, especially in Tier 2 cities, as consumers seek to strengthen old gold pieces.
- 04Local jewellers are calling for the removal of GST on jewellery conversions to support the industry.
- 05Panic buying has been observed as consumers react to market volatility and rising gold prices.
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In response to rising gold prices and a recent customs duty hike from 6% to 15% on gold and silver, many families in India are turning to heirloom jewellery recycling. Prime Minister Narendra Modi's call for citizens to refrain from buying gold has further influenced this trend. Riyaa Agrahari, an IT professional and bride-to-be, reflects this sentiment, stating that her family is enhancing older pieces due to their higher purity compared to modern alternatives. Local jewellers, including Vishal Agrawal from Chetmani Gems and Jewels, report a notable increase in recycling requests, particularly in Tier 2 cities like Lucknow and Kanpur. They emphasize that the love for gold remains strong in these areas, even as new purchases decline. Additionally, Rajendra Agarwal of Sona Chandi Jewellers highlights the need for the government to remove GST on jewellery conversions to support the industry. As panic buying continues amid market volatility, it is clear that the trend towards recycling heirloom jewellery is gaining momentum in India.
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The increase in heirloom jewellery recycling is helping families save money and maintain the value of their gold during economic uncertainty.
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