While I am very careful to source my precious metals only from SCS® certified suppliers (SCS® stands for Supply Chain Sustainability; they are the global leader in the field of sustainability standards and third-party certification). Most of my precious metals suppliers are also members of the Responsible Jewellery Council. However, I want to point out that ‘recycling gold' is not what is commonly understood by the term.
True recycling avoids things ending up in landfills. Gold, of course, wouldn’t.
Instead, gold is simply melted, refined and repurposed.
Although SCS® certified refineries must maintain auditable records of their suppliers, there are loopholes globally which make it very easy for gold from unregulated and/or illegal sources to enter their supply chain.
This makes even 'certified recycled' gold untraceable.
We all try to do our part in working towards a healthier planet, and recycling is certainly part of that journey. When it comes to gold, however, that term is not what it seems.
The State and Status of Recycled Gold
Let’s first look at where recycled gold falls in terms of supply.
Even though there is so much gold that has already been mined, most of it is sitting in banks. The annual demand for this precious metal cannot be met by recycling alone. In the first quarter of 2024 alone, central banks bought more gold than in any previous quarter. Consequently, more gold has to be mined.
It’s hard to believe these staggering numbers, but in 2023, 3644.4 tonnes of gold were retrieved from mines. According to the World Gold Council, only 1237.3 tonnes or roughly 25% of the worldwide demand for gold was covered by recycled gold.
Definition of Recycling
But what exactly is ‘recycled gold’?
The Oxford Reference Dictionary defines recycling as “The reprocessing of discarded waste materials for reuse”
When you think of recycling, you might think ‘environmentally friendly’. What comes to mind might be aluminum cans or glass bottles, emptied of their content, reprocessed into brand new bottles. This saves raw materials and avoids additional waste going into landfills.
Gold, of course, would never end up in landfills (except in minute amounts from electronics which are not disposed of properly; more about this later). Especially not now, with gold prices at an all-time high!
Therefore, the use of the word ‘recycled’ in connection with gold is extremely misleading.
There is, in fact, a movement afoot to change the definition of recycled gold, in 2 directions …
Changing the Definition of ‘Recycled Gold’
I am really noticing that people are becoming increasingly more discerning about where the precious metals used in creating their jewellery comes from. With this, the demand for recycled gold is increasing.
This trend has even led the Responsible Jewellery Council (RJC) to consider adding investment gold like gold bars in under the term ‘recycled gold’. Since the journey from mine to bar is brief, this would even further water down the definition of ‘recycled gold’.
It is not surprising that there is strong opposition to this change in definition under the RJC. Organizations such as The Alliance for Responsible Mining (ARM), The Precious Metals Impact Forum, Ethical Metalsmiths, and others are protesting this proposal.
These voices are fighting the proposed definition “recycled” as it deviates from established legal and normative definitions of recycling. Instead, they recommend adopting a definition consistent with international standards, limiting the term “recycled” to products with very little recoverable gold (e.g. e-waste – less than 2% gold in the alloy) . Whereas products that contain more than 2% gold (e.g. old jewellery, dental scrap, bullion) where the gold was recovered, refined, or just melted and reused would be designated as “reprocessed precious metals.”
Additionally, ARM has submitted an open letter to RJC with detailed arguments regarding the risks of greenwashing associated with definitions not aligned with legal standards and public expectations on “recycled.”
Conflict Gold, Money Laundering, and Child Labour
The definition of what ‘recycled’ actually means in only one problem. The other is the origin of this gold.
As exposed in the feature documentary “FRANCEFRACNEFRANCE” (which had a big impact on me), this precious metal is one of the easiest ways to launder money. For example:
The study The Dark Side of the Gold Trade conducted by the Swiss non-profit organization SWISSAID in 2020 shows that a large proportion of the gold sold to Germany via Switzerland as recycled gold originates from the United Arab Emirates. The controls in Dubai regarding the origin of purchased gold are demonstrably inadequate.
And when gold is imported from the demographic republic of Congo and transferred to France, France is then considered the country of origin.
The conclusion of the study: Illegal gold from conflict areas ends up in the international gold trade without any problems. And it then enters the market as ‘recycled gold’. You will see how naming such gold ‘ethical’ would be problematic.
Not even e-Waste Gold, which truly is recycled, is truly ethical, as it turns out. In their report “Children and e-Waste“, the World Health Organization warns that more than 18 million children between the ages of 5 and 17 are employed in the industry, which includes the processing of e-waste.
This demonstrates that child labour can only be ruled out with 100% traceability.
And traceability is at the front of organizations such as Fairtrade™ and Fairmined™.
Alternatives and Solutions
What if a goldsmithing studio refines and re-melts precious metals in their shop in-house, though – is that more ethical?
Better? Yes. But the term ‘recycled’ should be used with caution. Just call it ‘sustainably repurposing precious metals’.
Since the original source of the clients’ gold is unknown, calling re-purposed gold ‘ethical’ is still problematic.
You can ask jewellers what due diligence steps they take to be certain about the origin of their precious metals. Do they have published, detailed, and certified chain of custody practices in place? Are their recycled precious metals 3rd-party verified?
Ideally, buy products made with verified silver or gold from Smallscale Artisanal Mining such as a Fairmined™ licensed maker’s work. I report my Fairmined™ gold and silver purchases in a central databank, where the supplier also reports. These two records are then checked against each other by a 3rd party for verification.
This is the best option if sustainability and ethical practices are important to you, especially since no other gold can be guaranteed to be 100% child-labour-free.
That’s why I am so proud to be one of the few Canadian goldsmiths to be Fairmined™ licensed.
New Legislation to prevent Greenwashing
Unfortunately, most makers haven’t even realized that the terminology is problematic, and thus might accidentally participate in greenwashing – they simply haven’t caught up.
I was very excited to learn that the members of the EU parliament just adopted a new law banning greenwashing and the use of misleading environmental claims.
This law states, for example, that
“only sustainability labels based on official certification schemes or established by public authorities will be allowed in the EU.”
Similarly treated are any carbon footprint claims:
“… the directive will ban claims that a product has a neutral, reduced or positive impact on the environment because of emissions offsetting schemes”.
Because of free trade agreements between the EU and Canada, these laws will hopefully make their way to Canada before long.
I know that I’ll be ready and already compliant: I am always clear about ‘recycled’ gold, and I know which mining community in Peru is positively affected by my using their Fairmined ECO gold.
Dorothée Rosen is a designer and Fairmined licensed goldsmith in Halifax, Nova Scotia, where she has been handcrafting jewellery for over 20 years. A graduate of NSCAD University and Craft Nova Scotia Master Artisan, she is a member of Ethical Metalsmiths and the Society of North American Goldsmiths. Sustainability in Goldsmithing is at the heart of her passion.
Dorothée is always happy to share information and engage in dialogue – please do not hesitate to reach out: [email protected]
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