Shifting Sands: India’s Gold Refiners Brace for Fresh Competition
Refining gold has been a tradition in Satish Pratap Salunke’s family for generations. Following the footsteps of his father and grandfather, Satish and his business specialize in collecting scrap gold from jewellers, melting it down, and selling it back to the jewellers in the form of gold bars. With two refineries located in Kochi, Kerala, and Tiruchirappalli, Tamil Nadu, along with other relatives owning refineries in southern India, Satish’s operations contribute to the unorganised refining sector in the country.
India boasts a massive gold reserve estimated at 25,000 tonnes, with a portion consistently available for sale, especially during periods of high gold prices or economic downturns. Local jewellers often prefer dealing with small refiners like Satish due to their efficiency and readiness to accept cash payments. Unlike larger refiners that may take days to process recycled gold, small refiners offer quicker turnaround times, which appeal to jewellers seeking rapid transactions.
Although India’s large-scale refiners have expanded their capacity significantly in recent years, they face challenges in importing enough unrefined gold to sustain their operations fully. As a result, these big refiners have begun establishing scrap collection centres in major cities to acquire unwanted gold and refine it into high-quality bars. The aim is to increase the share of gold recycling handled by organised refiners and elevate India to a global hub for gold refining, similar to Switzerland.
Despite the growing presence of big players in the recycling industry, small refiners like Satish remain resilient. They continue to serve their local clientele, leveraging personal relationships and investing in modern refining technologies to maintain competitiveness. Furthermore, initiatives such as the Bureau of Indian Standards’ standards for gold bars aim to improve the efficiency and organisation of the gold refining industry in India, ultimately positioning the country as a trusted global player in gold refinement.
Comment Template