LONDON (Scrap Register): The supply of recycled gold reached 287.6 tonnes in the first quarter of 2019, up 5% from a year earlier, largely due to recent strength in the local gold price across many markets, the World Gold Council (WGC) said in its latest report.
The largest growth in recycling was seen in the UK. Brexit wrangling continued to exert pressure on the pound in Q1, helping to push up the local gold price further and tempting some to cash in, the report said.
In the Middle East, Iran saw a doubling of recycling levels year-on-year during the first quarter of 2019. A much higher local price in Iran was the primary driver of this increase, as consumers continue to face deteriorating economic prospects.
In India, both gold-for-cash and gold-for-gold recycling levels were boosted by the rise in gold price to a peak of over Rs33,700/10g by mid-February. Recycling of old inventory by local retailers also rose slightly during the March quarter, as concerns over a price correction mounted.
Similarly, China saw a greater level of recycling among retailers as they switched to higher-margin products.