Consumers seek to re-cycle gold

High premiums on gold are leaving buyers in India with fewer choices to purchase fresh gold ornaments and instead settle for re-cycling their old gold, reports say. Many buyers of wedding jewellery in India are taking to re-cycling their old gold. India, the largest gold consumer, the yellow metal is significant in weddings as part of the bride and bride-groom jewellery.

But supply of gold has been a challenge in the past months, as the Indian government imposed higher taxes and regulations regards gold imports to curb the country’s current account deficit, reports add. This has influence premiums on gold to run high, reports suggest.

While jewellers believe that re-cycling of gold will bring forth much of the stored gold, the high premiums are now deterring fresh gold purchases.