India recently reported a fall in scrap gold sales. This is mainly due to people holding onto their gold with hopes of a further increase in the price of gold, even though it touched 16,000 Rupees per 10 grams according to Commodity Online from Mumbai.
Jewellers in Kerala, Gujarat and Maharashtra report a huge fall in scrap gold sales from existing owners. India, typically the biggest importer of gold in the world, reported almost nil imports of gold during the first quarter of the year.
In contrast, on the other side of the globe, the scrap gold business in Australia is booming. This means that while the developing world continues to struggle in the aftermath of the recession, countries like the US and Australia are thriving.
Consumers in Australia are rushing out to take advantage of the rising gold prices and offloading their unwanted and used scrap gold to hungry buyers. According to recent reports, cash strapped consumers are trading in everything, from engagement rings and broken lockets, to coins and mismatched earrings.
Several jewellers trading in scrap gold have also seen a huge rise in the business.
But things seem to be a bit different in Kerala and Gujarat. Jewellers here have seen a massive fall in scrap gold arrivals, even though they are experiencing a slip in demand during the current festival seasons compared to last year. This is because rural buyers are staying away from jewellery because of the high prices. To increase gold sales, trade-marketing group the World Gold Council has launched a Great Indian Gold Rush campaign.
In Australia, scrap gold sales are sky-rocketing and have seen an increase of around 50%. This increase has led to a proliferation of online scrap gold companies.
Thanks to this rise, Australia is set to overtake South Africa and the US as the world’s second largest producer of gold this year. New mines are coming on line, with a giant facility south of Perth beginning production of what can be expected to be an output of a million ounces annually.
After recent falls, Australia’s gold output has returned to its previous high of about $7 billion annually. With the price of gold approaching $1,000 per ounce and international investors taking an interest in Australian mines, the business will only get better from here on out.
China is currently the world’s largest producer of golf, overtaking the US and South Africa in 2008.
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This article was written for The Gold Company and offers news information on scrap gold.