Indian Households estimated to have about 20,000 tonnes of yellow metal - gold in form of jewellery, coins & bars
Surge in gold recycling also comes as India looks set to be overtaken by China as the world's biggest consumer of gold, after a hike in import duties in March, 2012 and a rapidly weakening rupee pushed local gold prices to record highs.
According to an estimate from industry body the WGC (World Gold Council), The potential for recycling is huge with India's 120 crore people estimated to have stored up nearly 20,000 tonnes of gold in the form of jewellery, coins & bars. It is about 3 times the holdings of the US Federal Reserve.
The BBA (Bombay Bullion Association) estimates the supply of recycled gold in India will hit 300 ton in 2012, up nearly 5 fold from 2011 and the highest in more than a decade.
India’s scrap market in 2011 was only about 58 tonnes, or 6% of total gold demand of 969 ton.
Farmers and households in India are the biggest buyers of gold that they use as savings in the absence of a functional bank network.
The BBA estimates refining capacity is at present at nearly 100 tonnes a year in India, which for decades has relied on imports from South Africa, Switzerland and Australia for most of its requirements.
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