MUMBAI/SYDNEY (Commodity Online): India recently reported a fall in gold scrap sales as people have been holding their gold in anticipation of further increase in the prices of yellow metal even though it touched Rs 16,000 per 10 gm — a record of sorts.
In Kerala, Gujarat and Maharashtra jewellers reported a huge fall in scrap gold sales whereas in February this year India reported huge scrap gold business with India, the biggest importer of gold in the world, reporting near nil imports of the yellow metal.
However, with gold prices touching above $1,000 per ounce level and recession haunting the western world, scrap gold business is booming in Australia.
Consumers in Australia are now rushing to take advantage of soaring gold prices to offload unloved or unwanted gold items.
With gold trading above $1000 an ounce and the importance of cash highlighted by the deepest global recession in more than 60 years, Australians are trading in everything from old engagement rings and broken lockets to coins and mismatching earrings.
Several jewellers trading in old gold have reported huge rise in business.
The case is different in Kerala or Gujarat. Jewellers have seen a fall in scrap gold arrivals and they also are witnessing a slip in demand even during this festival season. Reason is that rural buyers are staying away from jewellery because of the high prices.
Recently World Gold Council has launched a Great Indian Gold Rush campaign to woo back customers.
Whereas in Australia, scrap gold sales have seen a jump of around 50 per cent. The gains enticing jewellery and scrap sellers have also led to a proliferation of online scrap gold companies.
According to birminghamstar.com, Australia will most likely overtake South Africa and the US as the world's second-largest producer of gold. New mines in Australia have boosted international demand in gold, with a giant facility south of Perth beginning production on what is expected to be an output of a million ounces a year.
After recent falls, Australia's gold output has returned to being worth about $7 billion annually. Prices for gold are approaching $1,000 an ounce and international investors, especially those in China, are taking a keen interest in the Australian mines.
China remains the world's largest producer of gold.
