Financial problems in Europe and the United States have driven the recent rise of gold to new all-time highs. This sharp rise in gold prices was the result of several factors.
Swiss bank UBS said gold, which topped $ 1,600 an ounce on July 18, will be the only precious metal facing a supply shortfall this year, as demand for gold exceeds restocking for the first time since 2008.
Bank analysts say the decline in recycled gold (gold returning to the market in the form of jewelry, electronics, gold teeth, etc.) will greatly contribute to the gold shortage.
The global supply of recycled gold fell unexpectedly 3% last year to 1,645 tonnes, according to a recent report by the precious metals markets research agency GFMS. Recycled gold accounts for more than a third of the annual supply of gold to the world market, and with high gold prices, gold items go on sale, but due to expectations of a higher price of gold, the supply of recycled gold has declined.