Aided by a fall in gold prices, gold recycling reached a seven-year low and is likely to remain low this year (2015) also, according to a report by the World Gold Council (WGC) and the Boston Consulting Group.
“In recent years, as gold prices fell and the global economy began recovering, gold recycling decreased. Last year saw the lowest level of recycling since 2007 at 1,122 tonnes accounting for just 26 per cent of the total supply,” the report titled ‘The Ups and Downs of Gold Recycling - Understanding Market Drivers and Industry Challenges’ said.
On average, recycled gold accounted for about a third of the total supply from 1995 through 2014.
In 1999, gold recycling accounted for just 17 per cent of the total gold supply, while in 2009 with higher gold prices and the global economy faltering, recycled gold hit a record 1,728 tonnes, accounting for 42 per cent of the total gold supply.
India and China’s gold jewellery consumption rose from 28 per cent of the global total in 2004 to 60 per cent in 2014, and as a consequence local competition for gold recycling business could heat up in Asia, the report said.
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