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CIBJO recommends new definition of ‘recycled gold’

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The World Jewellery Confederation (CIBJO) is recommending a new definition of “recycled gold״ to be used in the jewellery and watch sectors, so as to provide greater clarity and consistency both within the industry and marketplace. CIBJO will henceforth include the definition in the guidance documents it produces.

The definition, which covers recycled materials recovered during manufacturing and fabrication processes before being sold to consumers, and also gold recovered from materials after they have been sold to consumers, was developed through extensive discussions among industry experts. It is designed to set stricter criteria for secondary and circular gold supplies, and aims to improve the identification of inputs and outputs in the gold refining and fabrication processes, as well promoting transparent and responsible sourcing.

CIBJO acknowledged the contribution made by the International Standardisation Organization (ISO) in creating a draft of the definition, as part of a wider standard ISO was developing for responsibly sourced gold, a project in which CIBJO was an active participant.

“There has been growing confusion about the different names and labels for re-refined gold,” explained CIBJO President Gaetano Cavalieri. “The new definition provides a clear statement and set of criteria for recycled gold, which is more stringent than definitions for many other materials. The industry needs a clearer definition to avoid consumer confusion and greenwashing, and to enhance trading practices and supply chain transparency.”

The new definition has already being accepted as a substantial improvement by leading jewellery industry participants and associations, and key industry bodies like the London Bullion Market Association (LBMA) and the World Gold Council (WGC) are considering how to incorporate the main elements of this definition into their guidance and responsible sourcing practices. For its part, the Responsible Jewellery Council (RJC) has already included a definition based on the same criteria in its updated Chain of Custody standard.

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Rising US Inflation Fed Hike Expectations Put Pressure On Gold Prices

The Shift In Interest Rate Expectations Presents A Direct Headwind For Precious Metals. Because Physical Gold Is A Non-Yielding Asset That Does Not Generate Interest Income, Higher Prevailing Interest Rates Elevate The Opportunity Cost Of Holding Bullion Compared To Yield-Bearing Financial Instruments.

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Global gold and bullion markets are experiencing increased selling pressure as accelerating U.S. inflation data reinforces expectations of an imminent interest rate hike by the Federal Reserve.

​Recent macroeconomic reports indicate that U.S. inflation picked up in September, driven by higher consumer expenditure on energy, gasoline, and everyday goods. The persistent inflationary pressure has significantly reshaped market sentiment regarding monetary policy. According to the CME FedWatch Tool, traders are currently pricing in approximately a 75% probability of a rate increase at the Federal Reserve’s upcoming December meeting. 

​The shift in interest rate expectations presents a direct headwind for precious metals. Because physical gold is a non-yielding asset that does not generate interest income, higher prevailing interest rates elevate the opportunity cost of holding bullion compared to yield-bearing financial instruments. As borrowing costs rise and fixed-income yields become more attractive, institutional and retail capital is increasingly diverted away from gold and toward interest-bearing assets. 

​Market analysts note that while geopolitical uncertainties and inflation traditionally drive safe-haven demand, the prospect of tighter monetary policy and sustained higher interest rates continues to cap short-term upside potential for precious metals.

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