India has emerged as the fourth largest gold recycler in the world, and the country has recycled 75 tonnes in 2021, according to the World Gold Council (WGC) report.
According to the WGC’s report titled ‘Gold Refining and Recycling’, China tops the global gold recycling chart by recycling 168 tonnes of the yellow metal, followed by Italy in the second position with 80 tonnes and the US in the third rank with 78 tonnes in 2021.
The report estimated that from 2013 to 2021, India’s gold refining capacity rose by 1,500 tonnes, or 500 per cent, to 1,800 tonnes. In addition, 11 per cent of the country’s gold supply in the past five years has come from ‘old gold’; driven by movements in the gold price, future gold price expectations and broader economic outlook.
Somasundaram PR, regional CEO, India, World Gold Council, said, “India has the 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.”
“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,” Somasundaram PR added.
India’s gold refining landscape has changed significantly over the last decade, with the number of formal operations increasing from less than five in 2013 to 33 in 2021. As a result, the country’s organised gold refining capacity has surged to an estimated 1,800 tonnes compared to just 300 tonnes in 2013.
The report titled ‘Gold Refining and Recycling’ also pointed out that amid the rising demand for gold in India, recycling would continue to be key and the refining industry, which is currently stabilising after a period of change, will witness steady development.
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