As gold prices soar, customers in Asia race to cash in jewellery, coins

Retailers say rush could lead to major markets cutting imports, tempering rally

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MUMBAI - As gold prices jump to successive highs, jewellers across Asia and the Middle East are grappling with displays losing their sparkle as customers race to cash in their old jewellery and coins.

If the rush to sell continues, it could ultimately lead to lower imports into major markets, potentially tempering gold's rally, retailers and industry experts said.

Spot gold topped US$3,000 an ounce for the first time on March 14, and continued climbing last week to bring year-to-date gains to more than 15 per cent, driven by a powerful combination of political and financial uncertainty.

The stunning run higher follows an almost 30 per cent rise in 2024, and has driven increased business for often-overlooked scrap gold buyers in Zaveri Bazaar, India's largest bullion market.

Textile trader Unmesh Patel said he had made a return of over 25 per cent selling four 10g gold coins bought less than seven months ago after the Indian government cut import duties on the metal.

"I just decided to sell instead of waiting for prices to go up even more," he said.