All that?s sold is recycled silver! | india | Hindustan Times
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All that?s sold is recycled silver!

ARE WE entering an era of recycled silver? The city?s more than 700-odd jewellers mostly in the sarafa bazaar have stopped sourcing new silver supplies from international markets. The prime reason behind a self-imposed ban by local jewellers on sourcing silver from the international markets is the steep rise in price of the precious metal which is currently pegged at US $ 10.10 per troy ounce?a rate largely unaffordable by local jewellers to source their supplies from global bullion markets.

india Updated: Mar 20, 2006 00:42 IST

ARE WE entering an era of recycled silver? The city’s more than 700-odd jewellers mostly in the sarafa bazaar have stopped sourcing new silver supplies from international markets.

The prime reason behind a self-imposed ban by local jewellers on sourcing silver from the international markets is the steep rise in price of the precious metal which is currently pegged at US $ 10.10 per troy ounce—a rate largely unaffordable by local jewellers to source their supplies from global bullion markets.

“The prevailing retail price of silver at sarafa bazaar in Lucknow as on March 13, 2006 was Rs 13,900 per kg with an average daily turnover of the precious metal estimated at Rs 1 crore in the sarafa bazaar. The silver being sourced by jewellers right now in the entire state is in the form of old silver jewellery stocks which are being recycled to prepare new jewellery designs”, Vinod Maheshwari spokesman of UP Safara Association told HT Live.

The repeated recycling of old silver jewellery brings down the quality of the final product. However, there is no option right now with jewellers but to recycle old silver jewellery stocks for preparing new designs as nobody has the courage to buy silver from the international market , he said.

Maheshwari said quite a few jewellers in the state have been purchasing old silver jewellery from rural areas.

The reason behind this is that people in the rural areas keep a large amount of old silver jewellery which have consistent quality and probably have never been sold to a jeweller before, he said.

“We have consistently opposed the idea of the government putting gold and silver metals for trade in the country’s commodity exchanges. The entire speculative activity in the two metals in the commodity exchanges had led to steep rise in prices of both gold and silver prices both at retail and wholesale markets”, he added.