Old gold recycling up by 15-20% in August

Alongside, they said, some people have used the opportunity to exchange old gold for cash as well

Post By : IJ News Service On 06 September 2019 11:45 AM

Recycling of old gold has increased 15-20 per cent year on year in August, according to industry estimates, as consumers seek to balance wedding demand with increased prices of the precious metal. Jewellers said there has been a surge in the number of customers walking into stores to exchange old gold ever since gold prices started rising steeply after a long lull. Alongside, they said, some people have used the opportunity to exchange old gold for cash as well.

“Mostly private financiers and pawnbrokers, with whom people pledge gold for cash, are encashing gold as price has gone up. They will give fresh loans from the cash generated through sale of this gold,” said Anantha Padmanabhan, chairman, All India Gem and Jewellery Domestic Council. In 2018, total gold recycled in India was 87.1 tonnes, while the figure for August was around 30 tonnes.

James Jose, a Kerala-based gold refiner, said that the flow of old gold in the system will go up if prices appreciate further. “There are cases where a person who has pledged gold at a certain price, which is lower than the prevailing price, with the financier now taking the gold back and selling it in the market for better returns,” he said.

“People are on a wait-and-watch mode as they are expecting prices to appreciate further. There is a possibility of gold prices surging as the trade war between the US and China is intensifying,” said Shaankar Sen, MD, Senco Gold & Diamonds. Gold prices rose on Monday as the United States and China announced further tit-fortat tariffs on each other’s goods, escalating a prolonged trade war and adding to fears of a global economic slowdown.

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