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Originally Posted by
ParkerFlyer4
Why do you suppose were at a 7 year low in gold recycling? It mentions something interesting about gold slowly getting replaced with something else in new electronics. I will read more about it later
Since around 2002 industry has been using much more efficient methods for plating gold over copper in regards to electronics. This may perhaps account for part of the decline, but I doubt seriously that is the case. When laws were passed to prevent electronics from being dumped in landfills, there was a huge quantity of material that was available, almost overnight. I know this because I was selling containers of
e-scrap overseas around 2003. I know better now, and if in the same position would not have been doing so. Regardless, the places where e-scrap was being shipped more or less were processing legally, and reporting what they were processing. Since that time, until now, places like China have enacted very strict laws in regards to processing e-scrap, and made importing into their countries very strict just this last year.
What we see now is massive amounts of e-scrap, from worldwide sources, being shipped to places like West African nations. It is done so under the guise of electronics for sale, in a secondary market, or re-purposed goods. The reality is that it's e-scrap, and being processed illegally without government controls. Because it is not legally being processed, the gold is not sold as scrap, but instead is sold as "gold dust". Google "gold dust for sale" and you will soon realize that 99% of the people offering gold dust are most likely from West African nations. It is sold as gold dust from mining operations. Just this fact alone could account for the change in recycled to mined gold as the article does mention the fact that mining has picked up the slack where recycling has trailed off.
So it's very likely we have not seen a decline in the amount of gold recycled, but only a decline in the amount that is reported as coming from recycled sources. Also, refineries able to do so, would hold onto as much gold as their business model would make possible, until such a time as gold prices go back up. This is a common practice, if you check the downtrends of reported, recycled gold, you will also notice that it happened at the same time as gold prices fell from $1600 per ounce to what they are today.
I try to retain as much gold as I am able.....
Just as another side note, it is noteworthy that the gold buying industry, which would account for a good percentage of recycled gold, has been experiencing a downturn. This is because of several factors, first, the price of gold has gone way down. And second, the economy is doing marginally better, which relieves as people do not have to sell their gold in order to make their bills. And third, because most of what people would consider scrap gold, has been sold leaving only valuable heirlooms or pieces that the people who own them are emotionally attached to in some way.
Regardless, we could guess the why, but until there are controlled studies, and rigid ways to collect the data, we cannot be positive about anything at all. We can only speculate and guess.
Scott
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