Gold Production Impact

✺ In 2023 the World Gold Council estimated that 3,644 tonnes of gold had been produced- the highest since 2018 because there were no major disruptions.

╰┈➤ Approximately 20% of the world's gold production comes from Artisanal and Small Scale Mining. Due to the increase in the price of gold, criminal organisations are contributing to illegal deforestation in the Amazon to mine gold illegally (Bloomberg).

╰┈➤ China and Russia are the two highest producers of gold in the world, with China responsible for 10% of global output (World Gold Council). Gold mining is detrimental to the environment- loss of biodiversity, pollution of air, land and water, detrimental to the health of miners- poisonous chemicals used to extract gold, unsafe working conditions and detrimental to the communities the mines are based in (poor air quality, polluted water sources) ~ WWF.

╰┈➤ Companies that are not tracing the origin of raw material or purchasing certified gold risk using supply chains with gold produced under unethical conditions. This can end up in customer products, where people unwittingly purchase the products- traceability and transparency play a really important role in this space helping to identify the provenance and making this information available to consumers.

╰┈➤ A survey by Deloitte in 2023, showed that consumers purchasing a luxury watch valued: Brand image and Price/Value ratio above Sustainability/Environmental impact or Circularity/Longevity. The exception was France and Germany where Circularity/Longevity where the second most important consideration. Regardless, brands were continuing to invest in sustainablibilty because it was part of their corporate strategy.

╰┈➤ Pandora has been sourcing 100% of its gold (and silver) from recycled sources, since 2023 ahead of their 2025 target. Recycled gold however doesn't come without its challenges- once smelted it's difficult to trace sources. The definition of what qualifies as 'recycled gold' is also a topic of debate. The Responsible Jewellery Council revised their definition in 2024 to include: ‘pre-consumer’ - manufacturing scraps and other reprocessed material; ‘post-consumer’- old jewellery and ‘waste’- discarded electronics (Vogue Business and Responsible Jewellery Council).

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