The high value of gold this year has seen a flood of old, broken and stored pieces made from the precious metal coming back on to the market.
India, where the government has been pushing people to recycle their old gold to cut down on the need for expensive imports, has really seen recycling rocket in 2016.
The country, the second biggest gold importer in the world after China, has experienced such a surge in gold recycling over the summer that it has met 45-60 per cent of demand for the precious metal through recycling, according to the All India Gems and Jewellery Trade Federation.
Figures from Commerzbank show that India’s August gold imports stood at 26 tonnes, a fall of 81 per cent compared to the same month last year. Over the first half of 2016, the country imported around half the amount of gold it did in the same period last year.
Bachhraj Bamawla, director of the Gems and Jewellery Trade Federation, told the Wall Street Journal: "At this price, the recycled market will continue. Wedding and festival season is approaching, but the price of gold is a deterrent to demand. Rather, people will sell at these prices. If there is no Indian demand, prices may fall."
It’s estimated that Indian homes and temples have a phenomenal 22,000 tonnes of gold stored in them, and it’s this unwanted gold that the Indian government wants people to part with.
The demand for gold is so high in India because people tend to buy it during festivals from September to November, and again during the wedding season that follows.
Shalini Goel was able to exchange a necklace and bracelets for almost 15 times as much as she paid for them, thanks to the good gold price.
We can’t promise you’ll get such a high return for your old broken and unwanted gold jewellery when you send it in for recycling, but it’s likely you’ll be pleasantly surprised by its value in the current market.
Gold Coins Face Strong Demand at Present
Palladium and Platinum - Alternative Sources of Value
Gold is Becoming a Greener Precious Metal
Physical Gold Market Squeezed, Boosting Seller Opportunities
Scrap Gold Ripe for Selling in Post-Lockdown Period
Scrap Gold UK Keeps an Eye on Gold Authenticity
Gold and Silver - Making Sure It’s the Real Deal
2021 Reddit Silver Spike Poses Selling Opportunity
Lean January Could be Golden in 2021
Christmas 2020 Operating Hours