In a previous post, we examined the many factors that contribute to fluctuations in gold prices. Similarly, did you know that gold recycling activity fluctuates as well? If business is booming at the MGS storefront, or if we’re having a slow day, chances are we can open a few newspapers and find out why. Economic turmoil is probably the major reason gold recycling ramps up or winds down. Gold is a stable asset, so when other types of investments start flagging, investors will try to mitigate losses by buying more gold. To help fill this increase in demand, gold recycling increases to return more gold into the market.
Gold’s changing value also impacts levels of gold recycling. When the price is low, the payouts from a refiner aren’t as high – this usually prompts dealers to hold on to their scrap for a bit longer than they normally would. Once the price of gold starts increasing again, precious metal recyclers typically see an uptick in clients bringing in new lots for refining.
And then of course is time. Mines all over the world are hard at work extracting gold and scouting the earth for new sources. Over time, the worldwide gold supply increases – which means there’s more gold for recyclers to be working with.
We’ve distilled these concepts into an infographic below. Are there other factors that make you put off a visit to the gold refiner? Let us know on our Facebook page.