A 'Tsunami' of Recycled Gold Is Ready to Hit the Market

SEATTLE (Scrap Monster): A ‘tsunami’ of secondary gold supply is ready to hit the market once global economies return to normalcy, said Jeffrey Rhodes, principal consultant of RAK Gold at a webinar organized by the Dubai Multi Commodities Center (DMCC) on Covid-19 impacts on precious metals.

Supporting the above viewpoint, John Reade of the World Gold Council noted that secondary gold supply has not yet hit the market despite gold touching its highest level in almost seven years, mainly due to shutdown of business establishments on account of lockdowns imposed by several countries to tackle the spread of the pandemic. The central banks are likely to add more gold this year. Meantime, 2020 is expected to be a weak year for gold jewelry, Reade added.

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The webinar observed that Dubai Gold Souk- the key centre of gold business in the region- is slowly returning to normal operations. The two-week lockdown period in the region had severely affected gold sales. Meantime, the UAE has increased its gold holdings by 5.9% in the opening month of 2020, after reporting 15% jump in 2019.

Kevin Telmer, executive director of the Artisanal Gold Council, who participated in the webinar, pointed out that artisanal mining is poised to witness growth, especially in African countries.