Rising gold prices drive Indians into jewellery recycling; here's what experts say
₹71,500-72,500. The rising gold prices is leading to dwindling of demand in the country and prompting Indians to opt for recycling of their old jewelleries amid festive season. Also read: Silver prices likely to cross ₹1 lakh per kg in medium to long term: Motilal Oswal “We have seen higher investment demand for gold in India through various gold investment instruments.
Gold prices have gained nearly 8.70% CYTD right before summer wedding season and auspicious Akshaya Tritiya when demand for jewellery and coins tends to remain higher. The record high gold prices may impact India retail jewellery demand going forward as consumers may refrain from buying at current price levels. The lower demand may also affect India gold imports in coming months reasoning with higher prices and weaker rupee," said Tapan Patel, Fund manager-Commodities, Tata Asset Management.
According to the World Gold Council, recycled gold refers to gold sold for cash by consumers or individuals within the supply chain, like jewelry manufacturers disposing of old inventory. This definition excludes transactions where gold is exchanged directly for gold, such as when retail customers swap old jewelry for new pieces. 'Recyclable' gold can originate from old jewelry, known as high-valued scrap, which constitutes approximately 90% of the total supply of recycled gold worldwide.
Alternatively, it may come from industrial scrap material, predominantly comprising waste electrical and electronic equipment like computers, tablets, and mobile phones. Despite being used in modest quantities, gold finds application in printed circuit boards and various other components. Also read: Gold rate outlook: Goldman Sachs raises yellow metal price forecast to $2700 per
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