What is Gold Recycling Scheme? Why jewellers are bullish for it; Will it offset impact after PM Modi’s appeal to postpone gold purchases?

1 hour ago 10

Gold Recycling Scheme: Addressing a rally organised by the Telangana BJP in Hyderabad, Prime Minister Narendra Modi on Sunday (May 10) called for judicious use of fuel, postponement of gold purchases and foreign travel, among other measures, to strengthen the economy.

The gems and jewellery industry is likely to face an adverse impact after Prime Minister Narendra Modi appealed to citizens to postpone gold purchases for a year to help conserve foreign exchange amid the West Asia crisis, the All India Gem and Jewellery Domestic Council (GJC) said.

GJC Chairman Rajesh Rokde said the gems and jewellery industry, which provides direct and indirect jobs to over a crore of people, will come into stress after the prime minister's appeal, PTI reported.

He said this might also lead to revenge buying, as seen in the past when people buy more when restricted, according to PTI. Industries like BFSI, retail, e-commerce, jewellery designing, logistics, among others, will also be impacted as they are connected with the gems and jewellery industry.

Utilise existing gold more efficiently

The answer lies not only in consuming less gold, but in utilising existing gold more efficiently, transparently and productively, Gupta added. On that note, let’s learn about the ‘Gold Recycling Scheme’.

What is Gold Recycling Scheme?

Gold recycling is a process of collecting, refining, and reusing gold from old items. Whether it’s an outdated necklace, damaged ring, or unused coin, the gold in it doesn’t lose its value or purity when melted and refined. This recycled gold is just as good as newly mined gold, making it an excellent choice for both manufacturers and consumers.

Why should you recycle your gold?

Postponing gold purchases for a year sounds a bit unrealistic for Indian citizens, as gold is linked with sentiment and more than that, in every big and small, gold is the most preferred ornament to be worn. Thus, avoiding buying it for a year sounds impractical, but instead, we can practice the gold recycling scheme. Here’s why:

Recycling gold significantly reduces the need for new mining, which causes deforestation, water pollution, and carbon emissions. It’s a cleaner, more eco-conscious approach to sourcing gold.

You can exchange old or unused gold for instant cash, gift vouchers, or new jewellery, turning dormant assets into financial gain.

Gold recycling promotes a circular economy by reusing existing resources instead of depleting new ones. It minimises waste and supports sustainability.