Gold rally shifts jewellery buyers from savings schemes to old-gold exchange
Tanishq, Reliance Retail and Jos Alukkas reported sharp declines in advance-purchase scheme deposits as high gold prices push consumers to exchange old jewellery. Exchange-led purchases are rising, reshaping jewellers’ sales mix and working-capital dynamics.
What happened
Titan Tanishq · Surging gold prices are shifting Indian jewellery buyers from advance-purchase savings schemes to old-gold exchanges. Tanishq, Reliance Retail
Key facts
- Tanishq customer-scheme deposits fell 39% YoY to ₹2,116 crore in FY26; down 19% in FY25
- Reliance Retail deposits fell 25% YoY to ₹250 crore in FY26; down 4.5% in FY25
- Jos Alukkas deposits fell 25% in FY26 versus 5% in FY25; operates 67 stores
- Jewellers reported old-gold exchange purchases up to 35% YoY
- Old-gold exchange contribution at Jos Alukkas rose to 65% of sales from about 45%
- Gold prices rose about 20% in FY25 and about 56% in FY26
- Recycled gold represented 46% of Kalyan Jewellers' sales
- Industry old-gold exchanges account for nearly one-third of revenue
- Old-gold exchange contributes 25-30% of DP Abhushan business
Why this matters
Rising exchange volumes increase the strategic value of partnerships or acquisitions in gold recycling, refining, authentication and digital jewellery resale.
What to watch
- Monthly gold-price direction and volatility in rupee terms.
- Customer-scheme deposit trends at Titan/Tanishq and other organised jewellers.
- Exchange share of sales, recycled-gold sourcing share and gross-margin commentary.
- Wedding-season jewellery volumes versus value growth and average ticket size.
- RBI interest-rate moves, household liquidity indicators and consumer credit conditions.
- Promotional intensity around gold-rate protection, making-charge discounts and exchange bonuses.
- Expand old-gold collection, purity-testing and same-day exchange capacity across stores.
- Use recycled gold more aggressively to reduce bullion procurement needs and hedge working-capital pressure.
- Launch exchange-linked loyalty and savings products offering making-charge waivers, rate protection or bonus value on upgrades.
- Shift merchandising toward lightweight, studded and lower-ticket designs to protect unit demand.
- Tighten controls over old-gold valuation, fraud, refining yields and inventory quality as exchange volumes rise.