Bloomberg: Gold Scrap Supply to Drop Up to 25% as Lower Prices Deter Sales

Gold supply from recycled materials may fall by as much as 25 percent this year as lower prices deter holders from selling the metal at a time when physical demand is strengthening, according to the World Gold Council.

Scrap bullion supply may fall by 300 to 400 metric tons in 2013 from about 1,600 tons last year, according to Marcus Grubb, managing director of investment research at the gold council in London. Recycling accounted for 37 percent of total supply last year, according to Barclays Plc, which forecasts recycled sales of the metal to fall by 174 tons this year.

Gold is heading for the first annual drop in 13 years after some investors lost faith in the metal as a store of value, cutting bullion-backed fund holdings to the lowest since May 2010. Prices rebounded 13 percent from an almost three-year low last month as demand for jewelry and coins rose. Many gold holders sold metal when prices were higher and others are probably waiting for a rebound, Grubb said.

Read more...

Join Amazon Prime - Watch Over 40,000 Movies