Recycled Gold, Virtue or Illusion?
Between 4000 and 4300 tons of gold annually, that's the total global demand, across all sectors, according to the World Gold Council. Jewelry consumes about half of it. Recycled gold accounts for between a quarter and a third of the gold used. Should this be seen as progress? The answer is nuanced.
Why yes? Because much gold remains unused and lies dormant in vaults. A recent study by the auditing firm EY asserts that French households hold 4,026 tons of gold... almost twice the reserves of the Bank of France (2,437 tons). Moreover, mining extraction has a high human and environmental cost. The use of cyanide and mercury, highly harmful to soils and waterways, flora and fauna, weigh heavily on the balance when they are not treated. This is the case with illegal gold-panning sites, which are fueled by the strong global demand for gold but avoid all controls that are in place. At the other end of the spectrum, small artisanal mines certify Fairmined or Fairtrade gold, adhering to all the standards that apply to mining extraction. But they represent a negligible quantity (less than 1% of the market). Why not? In theory, gold recycling allows for the use of "clean" methods. However, while the process consumes infinitely less energy than mining production, it employs high temperatures and chemicals (for the separation of gold and alloys) whose emissions are not neutral. Another drawback is that it does not allow for tracing the gold back to its source when it is old. Therefore, the ethics of production (absence of pollution, corruption, armed conflict, children in mines) cannot, for the most part, be substantiated. Lastly, the gold industry provides a livelihood, directly or indirectly, for millions of people (up to 100 million according to PlanetGOLD*) for whom it constitutes an essential income. The choice between mining extraction or recycling is not a question, as both sources of production are complementary and indispensable to each other. Taking action to extend compliance with standards and ensuring a responsible value chain is the only right answer. *The PlanetGold program was established by UNEP (United Nations Environment Programme).