In news- World Gold Council (WGC) has recently released a report titled ‘Gold refining and recycling’.
Key highlights of WGC report-
- As per the report, China topped the global gold recycling chart as it recycled 168 tonnes of yellow metal, followed by Italy in the second position with 80 tonnes and the US in the third rank with 78 tonnes in 2021.
- India was ranked fourth in the list as the country recycled 75 tonnes in 2021.
- According to the WGC report from 300 tonnes in 2013, India’s gold refining capacity increased by 1,500 tonnes (500%) in 2021.
- The report further noted that the gold refining landscape in the country has changed over the last decade, with the number of formal operations increasing from less than five in 2013 to 33 in 2021.
- While the informal sector accounts for as much as an additional 300-500 tonnes, it is worth noting that the scale of unorganised refining has fallen, largely due to the government’s tightening of pollution regulations.
- Gold dore’s share of overall imports has risen from just 7% in 2013 to around 22% in 2021.
- India has potential to emerge as a competitive refining hub if the next phase of bullion market reforms promote responsible sourcing, exports of bars and consistent supply of dore or scrap.
- 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.
- 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.
- The WGC report noted that despite being the fourth largest recycler in the world, India recycles little of its own stock of gold — about 8% of the global scrap supply.
- Recycling is driven by current gold price movements, future price expectations and the economic backdrop.
The World Gold Council-
- It is an association whose members comprise the world’s leading gold mining companies.
- It helps to support its members to mine in a responsible way and developed the Conflict Free Gold Standard.
- Headquartered in London, United Kingdom, they have offices in India, China, Singapore and the United States.
- It is the market development organisation for the gold industry.
- It works across all parts of the industry, from gold mining to investment, and their aim is to stimulate and sustain demand for gold.
- It analyzes the industry, offering insights into the drivers of gold demand.
- It also launched various products such as SPDR GLD and gold accumulation plans in India and China.
Source: The Hindu
