India is now the 4^th largest Gold Recycling Country: World Gold Council

 

India recycles 75 tons of total gold recycling across the globe stated in World Gold Council. India has emerged as the fourth largest gold recycling country over the past 5 years. Recycling of gold is driven by price movement of yellow metal. 11% of India’s gold supply came from old gold, future gold price expectations and wider economic backdrop. When the price of gold rise people have the tendency to sell the gold either to gain from the price rise or to avoid spending on new gold jewellery. During covid 19 gold was sold to meet every day need report from WGC.

Domestic recycling market, driven by local rupee prices and economic cycle, is relatively less organised but should gain support from initiatives such as revamped GMS (Gold Monetisation Scheme) as various policy measures sync to make it attractive to bring surplus gold mainstream and liquidity is enhanced via bullion exchanges. Higher incomes following stronger economic growth will reduce outright selling and consumers will find it easier to pledge their gold rather than sell it outright. It is, therefore, necessary to support organised recycling with better incentives and tech-based solutions encompassing the gold supply chain end-to-end.