India now the fourth largest gold recycling country: World Gold Council
According to a recent report by the World Gold Council (WGC), India will be the fourth-largest gold recycling country in 2021, recycling 75 tonnes, or 6.5% of all gold recycled globally. According to the WGC report, 11% of India's gold supply originated from 'old gold' during the last five years, driven by changes in the gold price, future gold price forecasts, and the wider economic outlook.
According to WGC's research, gold recycling (jewellery, manufacturing scrap, and end-of-life industrial scrap) is influenced by price movements of the yellow metal, current and future expectations, and the economic backdrop.
A 1% increase in the price of gold raises recycling by 0.6% in the short run. Positive GDP growth in the same year and the preceding year, on the other hand, reduces recycling by 0.3% and 0.6%, respectively. "In addition, a 1% rise in jewellery demand reduces recycling by 0.1%," according to WGC.
India's organised gold refining capacity has also increased significantly over the years, from roughly 300 tonnes in 2013 to around 1,800 tonnes in 2021.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.