On August 1, 2026, international gold prices fluctuated above the high level of $2800 per ounce, while the global gold recycling market presented a booming scene. Data recently released by the World Gold Council shows that global gold recycling volume increased by 23% year-on-year in the first half of this year, with Asian markets such as China, India, and Japan showing particular prominence, and scrap gold repurchase volumes setting new historical highs. This phenomenon is a concentrated reflection of the temptation to realize value brought by continuously rising gold prices, as well as the upgrading of consumer concepts and changes in the industry chain. Surge in Recycling Volume: Asian Markets Lead Globally According to statistics from the World Gold Council, global gold recycling volume reached approximately 680 tons in the first half of 2026, a significant increase of 23% compared to 553 tons in the same period of 2025. Among these, China's gold recycling volume grew by 32% year-on-year, India by 27%, and Japan by 15%. The Chinese market is particularly remarkable; data from the Shanghai Gold Exchange shows that the cumulative transaction value of gold repurchase business in the first half of 2026 exceeded 90 billion RMB, far surpassing the 62 billion RMB in the same period last year. In gold and jewelry stores in first-tier cities such as Beijing, Shanghai, and Shenzhen, customers coming to inquire about and conduct gold recycling business are endless. A store manager introduced that the average number of recycling customers per day has doubled compared to the same period last year, with the highest daily recycling amount exceeding one million RMB. Many consumers expressed that they are realizing value from old gold jewelry purchased in earlier years while the gold price is at a historical high, achieving substantial profits. High Gold Prices as the Core Driver The direct catalyst for this round of gold recycling fervor is undoubtedly the continuously rising gold price. Since 2025, the international gold price has risen steadily from around $2200 per ounce, breaking through $2800 in July 2026 and setting a new record high. For ordinary investors, gold jewelry initially purchased at 300 RMB per gram now has a recycling price exceeding 650 RMB per gram, with a book profit exceeding one time. Precious metal analysts point out that gold recycling volume has a significant positive correlation with the gold price. When the gold price is high or in a rapid upward trend, the willingness of consumers and investors to realize value increases significantly. Especially since the gold price has cumulatively risen by over 30% in the last two years, many investors who bought gold at low prices choose to lock in profits at high prices, driving a large release of old gold supply. "Trade-in" Model Gains Popularity Compared to direct sales for realization, more consumers tend to choose the "trade-in" model. At major jewelry stores, old gold is converted into cash based on the current gold price as a deduction, and consumers only need to pay the difference to purchase new jewelry. This model satisfies consumers' needs to adjust their jewelry styles and allows for asset replacement at high gold prices, making it very popular. Leading jewelry brands such as Chow Tai Fook and Lao Fengxiang are increasing the promotion of trade-in services, with some stores even launching promotions like "free labor fee trade-in." Data shows that the proportion of trade-in business among major domestic jewelry brands has increased from 25% in 2025 to over 40% in the first half of this year, becoming an important engine driving store sales. Upgrading the Recycling Industry Chain The boom in the gold recycling market has also driven the transformation and upgrading of the entire industry chain. Traditionally, gold recycling was mainly conducted by individual jewelry stores and pawnshops, with long-standing issues such as opaque pricing and inconsistent purity appraisal standards. Today, more legitimate jewelry brands, banks, and internet platforms are joining the recycling market, promoting the industry towards standardization and transparency.
  • Branded Recycling: Brands such as Chow Tai Fook and China Gold have launched official recycling services, with clear pricing to prevent fraudulent activities.
  • Online Recycling: Platforms like JD.com and Alipay have introduced "Internet + Gold Recycling" services, allowing users to get online valuations and complete transactions via courier, which is convenient and efficient.
  • Professional Testing: Multiple third-party testing agencies collaborate with recyclers, using equipment such as X-ray fluorescence spectrometers for fast and accurate purity identification, reducing disputes.
The improvement of the industry chain has further increased the activity of the recycling market, encouraging more consumers to choose legitimate channels. According to statistics, the formalization rate of the gold recycling market in China has increased from less than 40% in 2020 to around 70%.

Expert Interpretation: The New Supply-Demand Landscape Behind the Recycling Boom

The surge in gold recycling volume has had a profound impact on the global gold supply and demand balance. On one hand, the ample supply of recycled gold has somewhat alleviated the pressure of tight gold mining supply; on the other hand, recycled gold, as a "secondary supply," is highly cost-sensitive. When gold prices decline, the recycling volume may rapidly shrink, thereby providing support to the gold price. Industry insiders point out that the gold recycling craze is a sign of market maturity. Consumers no longer view gold solely as a long-term savings asset but have learned to allocate assets according to price cycles. For ordinary investors, moderately liquidating some gold when prices are high to achieve "securing profits" is a reasonable risk management strategy; however, those planning to hold long-term do not need to blindly follow the trend to sell.

Future Outlook: Vast Potential in the Recycling Market

As gold prices maintain a high level of fluctuation, the global gold recycling volume is expected to remain high in the second half of 2026. The Chinese market, with its continuously increasing per capita gold holdings and a massive existing market, is expected to see further development in recycling business. Concurrently, the popularization of environmental concepts has increased the attention given to "reusing old gold," making gold recycling not only economically valuable but also aligned with sustainable development. The rise of the gold recycling boom reflects the maturity of Chinese consumer financial concepts. In an era of low interest rates, the value of gold as an anti-inflation asset has been rediscovered, and the smooth recycling channels have given gold investment stronger liquidity. It is foreseeable that future gold recycling will no longer be a reluctant act of "selling ancestral jewelry" but rather an active behavior of asset management and value rediscovery. (Data source for this article: World Gold Council, Shanghai Gold Exchange, public information from major jewelry enterprises)
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