Gold, a timeless investment is valued for its stability, cultural significance all across the globe.
Indians are strongly attached towards gold, mostly it is considered as the first choice as a gift in weddings. Not only in Indian market, this precious metal holds an allure since ancient times globally. This represents an important safeguard wealth amidst market fluctuations. After reaching record high in March, gold price is showing no signs of cooling anytime soon. According to the World Gold Council (WGC), “India's demand for gold is expected to increase.” The WGC further predicts that consumers will slowly adjust to higher prices, eventually rising the demand for gold throughout the year. For last 5 years, India’s gold demand remained between 700 and 800 metric tons, which is expected to escalate to 800 and 900 tons in this year.
However, amidst the rising price, there is one option as gold recycling. In this article, we will discuss about the need of gold recycling from customer as well as environmental impact point of view.
As per market research, a majority of Indian consumers buy jewellery in advance when the price is a bit low for forthcoming family weddings. As the price is reaching new highs everyday, it may become tough for many families to buy new gold jewellery.
Ramesh Kalyanaraman, Executive Director of Kalyan Jewellers, said: “Gold price surge has led to a trend of consumers adjusting their purchases by exchanging old jewellery for new, especially during weddings.”
According to the WGC: “Indians will probably sell a record amount of used gold jewelry this year to take advantage of a surge in domestic prices of the precious metal.”
In terms of jewellery recycling, “In India, approximately 15.6% (117.1 tonne) of the total gold used (747.5 tonne) in 2023 was recycled,” revealed by WGC data.
Indian brand Mia by Tanishq, which is known for lightweight and fusion-inspired gold jewellery for GenZ, uses on 100% recycled gold.
Globally, many other brands have already started using recycled gold including Tiffany & Co, Prada, Bulgari, and Chopard.
Many industry experts believe that recycling is the best way to support and promote green technology. It's sustainable too.
“Pure metals have a number of uses in a modern society, not least for the development of green technologies. Our research shows how the metal industry can accelerate the transition from fossil to bio-based solvents,” said Mark Foreman, Associate Professor of Chemistry at Chalmers University of Technology.
The use of recycled gold must be promoted to reduce electronic wastes. From laptop to other essential electronic items, gold is used everywhere. According to experts, this can be recycled into jewellery making.
According to WGC report: “Gold refining and recycling in India is a Rs 440-billion industry.”
Apart from being a precious metal (also a symbol of wealth) gold has numerous uses. Gold is used in most of the daily electronics we have around us. A smartphone contains around 0.03 grams of gold. In aerospace industry, gold is an important component.
“Historically, for every 100 grams of gold we transacted, generally 25% was old jewelry sales. The percentage may reach 35% to 40% this year as prices are rising” said Ashish Pethe, former chairman of the All India Gem and Jewellery Domestic Council.
