Editor’s Note
While recycled gold offers a more sustainable alternative to newly-mined gold, it is not without its own risks, including potential misuse for money laundering. This article explores the complexities of the recycled gold supply chain and the due diligence required to ensure its integrity.
Use of recycled gold can help avoid the human rights risks and environmental harms associated with newly-mined gold, as long as companies conduct due diligence; however, using recycled gold is not risk-free either, as it can be used for money laundering or wrongly labeled as recycled.
According to the World Gold Council, recycled gold accounts for approximately one-third of the total global supply of gold.
Jewelry, gold bars, and coins account for approximately 90 percent of post-consumer recycled gold, while the other 10 percent comes from industrial recycled gold, including electronics and cell phones.
Recycled gold can also refer to scrap material generated during refining or manufacturing, which is returned to a refiner or processor.
Tiffany and Co. has full chain of custody over its gold; it purchases newly mined gold exclusively from a single mine that is identified publicly, and the remainder of its gold from recycled sources. Tiffany has partial chain of custody over its diamonds, and can trace some of its diamonds to specific mines. It does not publish the results of audits or how it responds to cases of noncompliance. On the basis of available information, Human Rights Watch considers Tiffany and Co. to have made strong efforts to ensure human rights due diligence.
Tiffany and Co. has full chain of custody over its gold supply chain. Twenty-seven percent of its gold comes from a single mine in Utah, the Bingham Canyon Mine, and the remaining 73 percent comes from recycled sources.
It sources all of its recycled gold from one supplier, which has the ability to segregate gold from mined and from recycled sources. Its rough diamonds are sourced primarily from Botswana, Canada, Namibia, Russia, Sierra Leone, and South Africa.
Bulgari informed Human Rights Watch in a letter that it uses transfer documents for each batch of gold purchased, which include information on the kind of material (such as mined or recycled) and the country of origin.
Richemont’s refinery in Switzerland has developed sources of gold that it says are either certified or will become certified against the RJC Chain-of-Custody Standard, with a heavy emphasis on recycled gold.
Pandora states that in 2016, 91 percent of the gold it purchased was recycled; the rest was newly mined.
Since late 2016, the company has only used recycled gold which helps minimize human rights risks in its gold supply chain. However, the company states that it may resume purchases of newly mined gold in the future. Any newly mined gold must be certified against the London Bullion Market Association (LBMA) or the RJC’s Chain-of-Custody Standard. Between 2012 and 2016, all of Pandora’s diamonds were recycled from discontinued Pandora jewelry.
Boodles does not trace its gold or diamonds to mines of origin. Boodles does not purchase gold directly, but has subcontracted workshops that source gold from three suppliers it describes as “trusted.” Boodles estimates that 35 percent of its gold is recycled.
Chopard emphasizes that it has an in-house foundry, which enables the company to recycle gold and reduce its need for freshly mined gold.
Christ has a supplier code in place and sources predominantly recycled gold. The company shares almost no information about its supply chain and human rights due diligence publicly, though it has informed Human Rights Watch that it is planning to publish its supplier code of conduct and other information on responsible sourcing in the coming year.
Christ sources its gold almost entirely from recycling.
In addition, it sources some gold from refiners and customers who wish to recycle gold.
TBZ sources its gold primarily from bullion dealers, banks, and purchases of old jewelry (i.e. recycled gold).
UN Environment Programme, “Reducing Mercury in Artisanal and Small-Scale Gold Mining,” http://web.unep.org/chemicalsandwaste/global-mercury-partnership/reducing-mercury-artisanal-and-small-scale-gold-mining-asgm (accessed July 27, 2017); Herman Gibb and Keri Grace O’Leary, “Mercury exposure and Health impacts among individuals in the artisanal and Small-Scale Gold Mining Community: a Comprehensive Review,”
Marc Choyt and Greg Valerio, “Recycled Gold: How ethical is it really?,” September 14, 2016, (accessed November 10, 2017). The Gold Supplement of the OCED Due Diligence deals with recycling as a potential risk for laundering gold to hide its origin, e.g. from conflict-affected areas. Refiners are bound by a broader set of rules, the “Responsible Gold Guidance.” London Bullion Market Association (LBMA), “LBMA Responsible Gold Guidance,” January 18, 2013,
Boston Consulting Group and World Gold Council, “The Ups and Downs of Gold Recycling: Understanding Market Drivers and Industry Challenges,” March 2015, https://www.gold.org/supply-and-demand/ups-and-downs-gold-recycling (accessed January 9, 2018), p. 4. Recycled gold includes end-user, post-consumer products, scrap and waste metals, and materials arising during refining and product manufacturing, and investment gold and gold-bearing products.
