World Gold Council ranks India fourth in world gold recycling
The World Gold Council named India as the fourth in global gold recycling in its latest report titled ‘Gold Refining and Recycling’ and predicted that gold recycling will continue to be key to India’s gold market moving forward.
The new report stated that India’s gold recycling industry is valued at Rs 440 billion which is the fourth highest value in the world, the Gem and Jewellery Export Promotion Council announced on its website. Over the past five years, 11% of India’s total gold supply came from ‘old gold’, according to the report.
“India has potential to emerge as a competitive refining hub if the next phase of bullion market reforms promotes responsible sourcing, exports of bars and consistent supply of doré or scrap,” said the World Gold Council’s regional CEO for India, Somasundaram PR, the GJEPC reported. “Domestic recycling market, driven by local rupee prices and economic cycle, is relatively less organised but should gain support from initiatives such as revamped Gold Monetisation Scheme (GMS) as various policy measures sync to make it attractive to bring surplus gold mainstream and liquidity is enhanced via bullion exchanges.”
The World Gold Council’s report also stated that India’s gold refining industry is in the process of stabilising following the disruption of the pandemic. The gold recycling market is key to the growth of the refining industry, according to the council.
“Our report also highlights that holding periods of jewellery will continue to decline as younger consumers look to change designs more frequently; a trend that could contribute to higher levels of recycling,” said Somasundaram PR. “On the other hand, 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 gold supply chain end-to-end.”
Copyright © 2022 FashionNetwork.com All rights reserved.