Recycled Gold Hottest New Trend

By: HMB Gold

ACHIEVING SUSTAINABILITY WITH RECYCLED GOLD

Historical data has shown that gold is one of the few metals that retains its value over time. It’s no wonder then, that, buying gold as an investment has been a common practice for centuries. However, in recent years, there has been a growing movement towards sustainable and eco-friendly habits. Amongst conscientious buyers, investing in recycled gold has become an increasingly popular alternative to buying newly minted bars as it reduces the environmental impacts of gold mining and production.

Traditionally, recycled gold has long been used in jewellery by bespoke, independent, and small goldsmiths. Lately however with increasing awareness around environment and sustainability, even large fashion houses and luxury brands are collaborating with key actors in the precious metals supply chain to drive real improvement, radical transparency, and sustainable practices.

The trend is not limited to jewellery though as trading and investment in recycled gold bars and coins is also gaining momentum. Investing in recycled gold can be a way to support sustainable and ethical practices while also potentially earning a financial return.

Sustainability at its Core

There are a number of advantages to using recycled gold. It is easier and cheaper to source and is less harmful to the environment. Gold mining has been proven to be extremely costly and environmentally destructive. It requires large human and financial capital and often ends up disrupting the local habitat and displacing communities. Due to its non-corrosive properties, gold is a natural fit for recycling. It is a renewable resource that does not lose value with repeated use. And since it has already been purified there can be greater confidence in its quality. According to the World Gold Council, 28% of the global supply of gold is recycled – where 90% of the recycled gold comes from jewellery and the remaining 10% is sourced from recycled electronics.

This number is expected to rise further as mining for new gold becomes less sustainable. It increases pressure on the gold industry to reduce its carbon footprint, adopt ethical labour practices and promote transparency.

Raising Standards

Technology and digitalisation have made it easier to achieve transparency in the gold market. It is now possible for consumers to ensure that their gold is sourced through ethical processes, and this is true for recycled gold as well.

There are several certification programs that verify the sustainability and ethical practices of recycled gold producers. These programs, such as the Responsible Jewellery Council (RJC) and the London Bullion Market Association (LBMA), provide assurance to consumers that the gold they are buying has been sourced responsibly. Moreover, as gold sellers and traders can now trace their recycled gold supply chain back to the source they can verify its responsible and ethical production. They can also verify its chain of recycling to retain investment value. By providing information about the production and sourcing of recycled gold, companies can show consumers that they are committed to these standards. This can, in turn, increase demand for their products. Get in touch with our experts on gold purchase, investments, and hedging options to ensure that you’re making the smartest decisions regarding gold trading.