Wednesday, November 04 2020
Indian consumers recycled the most gold in at least eight years in the July-September quarter, with sales likely driven by a combination of distress on household balance sheets and higher prices for the yellow metal.
Total gold recycled in India in the July- September quarter spiked to 41.5 tonnes, compared to 36.5 tonnes in the same quarter a year ago, according to data from the World Gold Council. Gold recycled rose by 13.6% over a year ago.
There were a combination of reasons for the rise in recycling in the July-September 2020 quarter, said Somasundaram PR, managing director of the World Gold Council in India.
Somasundaram explained that there are typically three reasons for people to sell gold. First, to make money when the price of gold is attractive. Second, a distress situation where a household needs funds and can’t or doesn’t want to avail a loan. And third, in order to buy another asset.
Recycling gold only because of a price rise doesn’t always make sense as customers will lose some value because of making charges or impurities in the gold. Read More