Skyrocketing Gold Prices

By Varsha Sharma

Indore: Gold prices in the country are at record high. To take advantage of this, a record amount of old gold may come into the market this year. The price of gold has increased by about 15% in the last one year. On Monday, jewelery gold (22 carat) cost Rs 1,292 in a day. It became costlier by Rs 62,895. Reached a record level of per 10 grams. According to bullion experts, there is about 27 thousand tonnes of gold in Indian homes. Old jewelery accounts for 85% of gold recycling. Due to high prices, the amount of old gold coming into the market is likely to increase by 10%. This may break the 2019 record of gold recycling. According to the World Gold Council (WGC), in 2019, 119.5 tonnes of old gold came into the market for recycling. In 2024 it can reach 128.8 tonnes. Last year also, 117.1 tonnes of gold was recycled. This may be due to the following factors, sale of old jewelery in rural areas due to poor harvest, sale of old jewelery due to demand for new designed, lightweight, studded jewelery, auction of jewelery of defaulters by gold loan companies, sale of old gold to take advantage of expensive gold prices, on account of marriage, replacement of old jewelery in marriage with new jewelery to promote sustainability.
Jewelery 2023: Buying old jewelery of 3 brands Recycling increased by 9% worldwide last year, mining only 1% The share of recycling in the world’s gold supply increased to 9% It became 1,237 tonnes. During this period, mining increased by only 1%. • Total gold supply increased by 3%. According to Anuj Gupta, Head, Commodity- Currency, HDFC Securities, share of recycling in gold supply is expected to increase.
When gold prices rise, people sell old gold or exchange it for new jewellery. This increases the amount of recycled gold. Usually, recycled gold accounts for 25% of the gold sold in retail. But this year it can be 30-35%. As per Sachin Modi, Partner Shubh Jewellery, Mumbai Gold recycling prices may increase by about 10% this year. Prices are at a record high. In such a situation, those investors who have bought gold at a lower price earlier will sell gold to take advantage of this. This year, 10% more old gold is expected to be recycled than 117 tonnes in 2023.’