Representational photo by Jingming Pan on Unsplash
According to a research by the World Gold Council, India’s gold refining business has seen tremendous expansion in recent years, with the country ranked fourth in global gold recycling in 2021, behind China, Italy, and the United States (WGC).
According to the report, India’s gold refining capacity expanded by 1,500 tonnes, or 500 percent, from 2013 to 2021, to 1,800 tonnes. Furthermore, 11% of the country’s gold supply originated from ‘old gold’ over the last five years, owing to fluctuations in the gold price, future gold price forecasts, and the overall economic outlook.
The paper, titled ‘Gold refining and recycling,’ also stated that, despite India’s growing demand for gold, recycling will remain important, and the refining business, which is currently stabilising after a period of transition, will continue to grow steadily.
“India has the potential to emerge as a competitive refining powerhouse if the next phase of bullion market reforms supports responsible sourcing, bar exports, and reliable supply of doré or scrap,” said Somasundaram PR, World Gold Council’s regional CEO for India. Domestic recycling is less organised, driven by local rupee prices and the economic cycle, but it should benefit from initiatives like the revamped GMS (Gold Monetisation Scheme), where various policy measures work together to make it more appealing to bring surplus gold into the mainstream and liquidity is improved.