BackECONOMY
Old is gold again! Surge in heirloom jewellery recycling in India following a customs duty hike
India raised customs duty on gold and silver from 6% to 15% to curb imports amid the US-Iran crisis. The move has coincided with a rise in recycling of heirloom jewellery as families avoid new gold purchases, with activity noted in Tier 2 cities such as Lucknow and Kanpur.
Why It Matters
The policy shift appears to be reshaping consumer behaviour and the jewellery market, illustrating how fiscal measures can drive the reuse of existing assets and affect demand for new gold.
Timeline
2 Events
Surge in heirloom jewellery recycling and exchange requests reported
May 15, 2026
City jewellers report a sharp rise in exchange requests as fresh gold purchases slow. In Lucknow and Kanpur (Tier 2 cities), customers are opting to add small amounts or repurpose older pieces. Industry voices note that removing GST on conversions from old to new could help the sector, and Mehraj Siddiqui comments on panicky buying while noting Lucknow's continued fondness for vintage pieces.
Customs duty hike on gold and silver implemented
May 13, 2026
The Centre raised customs duty on gold and silver from 6% to 15% to curb imports and conserve foreign exchange amid the ongoing US-Iran crisis, following Prime Minister Narendra Modi's call for citizens to avoid buying gold.