Gold Up, Even as Demand for Jewellery Sinks

Gold prices are slightly higher today, trading with oil prices, which are above $60 a barrel. However, even though gold is higher in commodities trading, an interesting trend is emerging in terms of gold jewellery. 

Gold jewellery is falling out of favor right now, since many people feel they cannot afford it. Indeed, contracts for differences on gold prices should consider that the incidence of those interested in selling back gold jewellery. The Financial Times reports on the latest gold trend:

“Recycling of gold became a global phenomenon in the first quarter of this year,” said Rozanna Wozniak, investment research manager of the World Gold Council.

“The wave of recycling activity that we have seen clearly shows that used jewellery is not a ‘waste’ product. Selling back gold jewellery has provided consumers with much need funds during these very difficult times.”

It will be interesting to see what the effect this gold recyling will have on the overall gold market. Consider this when planning how to trade CFDs.