India’s Recycled Gold Supply Expected to Hit 300 tons

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The world’s biggest bullion buyer India’s recycled gold supply is likely to reach 300 tons in 2013 as contrasted to a mean of 200 tons yearly, according to All India Gems and Jewelry Trade Federation (GJF).

Bachhraj Bamalwa, controller of the All India Gems and jewelry Trade Federation, said in an interview with Reuters “Jewelers will need more gold to construct jewelry, as trades have been heavily restricted. If I sell today and (am) not in a position to replenish my supplies, then I’ll have a difficulty and then I’ll have to source gold from somewhere else,”

With the Rupee crashing to new all-time lows on the currency market, however, gold prices are beside record highs for Indian families.

Indian government has doubled levies on bullion trades this year to shrink a trade deficit and end a skid in the rupee. Gold is the country’s second biggest trade after oil.