The global shift in the appreciation of gold investments, guided by both ethical sourcing certification and Shariah compliance, is bringing a fresh focus to the recycling of this valuable commodity.
A recent example is The Royal Mint’s 3,700 sqm plant in Llantrisant, southern Wales, to extract this precious metal from old printed circuit boards (PCBs) – marking another initiative by the UK firm, which has obtained Shariah compliance for retail sales of its gold and silver bullion coins and bars.
Its new recycling plant can process up to 4,000 tonnes of PCBs from e-waste every year. If the plant is run at full capacity, it can produce annually up to 450kg of gold – valued at about GBP27 million (US$35.12 million).
This recovered gold has gone into crafting its 886 jewelry line and will later also be used for commemorative coins.
Extracting within minutes the gold from PCBs found in discarded devices like TVs, laptops and mobile phones, Chief Growth Officer Sean Millard said the factory “allows us to reduce our reliance on mined materials”.
Concerns over gold mining had led to the 2012 ‘Conflict-Free Gold Standard’ and the 2019 London Bullion Market Association’s ethically-sourced certification that includes safe mining practices, anti-child labour and also avoided toxic chemical usage like mercury.
The Royal Mint’s Business Development Manager Steven Jones told IFN Investor that by addressing these concerns, the Shariah compliant gold investment market growth potential looks promising.
To reassure consumers, he said there is a need to have full traceability across the supply chain – but he said industry estimates is that only 4% of gold is traceable.
Further, a study by European exchange-traded fund provider Tabula Investment Management found just one in four institutional investors and wealth managers believe gold miners follow recent industry-wide ESG standards.
Being hopeful, an estimated 89% expect improvements in the next five years in gold miners’ compliance. The study surveyed 200 gold investors from European pension funds, wealth managers, insurers and family offices.
Down Under, The Perth Mint is already addressing the traceability aspect as it refines a huge chunk of Australia’s newly mined gold. Its products have also been certified in accordance with the Shariah Standard on Gold set by AAOIFI.
