2024-05-02 22:28:35
Unsurprisingly, the rise in gold prices has caused an increase in recycling: +12% compared to last quarter. The driving continent for this recycling is Asia.
From January to March, 351 tonnes of gold were recycled. This is the first time since 2020 that so much yellow metal has been reused in one quarter, according to the World Gold Council.
These figures illustrate a classic observation in the sector: when the market is favorable, those who hold gold tend to offload it without delay, to take advantage of the prices. Traditionally, it is estimated that mining production only supplies 75% of the market. The rest of the supply is ensured through recycling.
China in the lead
With the yellow metal reaching $2,431 per ounce in mid-April, it was to be expected that individuals would sell some of their jewelry. Depending on the country, however, the quantities placed on the market varied greatly.
Over the past three months, the driving force for recycling has been China. India also clearly contributed to the increase in volumes. Thailand, on the other hand, stands out for rather low recycling: perhaps because some of the gold held by Thais has already been liquidated during the Covid-19 financial crisis, according to the World Gold Council. ‘gold.
Reluctance to sell
In Europe and the United States, the increase in recycled volumes was marginal. The Middle East was the only region to see a decline over the year. Regional conflicts and the economic uncertainties that accompany them have clearly taken their toll and holders of the yellow metal preferred to keep their gold as a safe haven.
The general trend towards recycling should continue, since gold prices remain very high at the start of the second quarter, even if they have fallen since their April record. The volumes ready to be recycled by individuals have, however, been partly exhausted, the quantity of gold which can be reinjected into the circuit should therefore increase little over the coming months, according to the World Gold Council.
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