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High Gold Prices Lead to Increase in Recycling Old Jewelry

By   /   August 31, 2012  /   No Comments

Sanjay Sharma used a gold chain he purchased almost twenty years ago as an exchange for a new ring for his wife.  “Gold is an investment option.  But I did not want to withdraw too much cash from my account as my expenses are already high and jewelry prices too have escalated,” he said.  Sharma is just one of many in India who have taken to recycling old jewelry in light of sky high gold prices. The number of households recycling gold has nearly doubled over the last year.  In fact, through the June-April quarter recycling of gold was down across all markets except in India.  A weak rupee pushed gold prices up and consumers sought to capitalize through recycling what they already owned.  An always popular practice in rural area, high prices have made gold recycling an urban phenomenon as well.  Bombay Bullion Association president Prithviraj Kothari says “Recycling old jewelry has been more significant this year as people don’t want to buy fresh at high prices.  Sale of scrap gold for new jewelry has shot up nearly 40% as compared to last year.”

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