Most of the gold used in refiners is recycled gold
The amount of gold processed by refiners is not only coming from direct mining.
Jackson Chen (J_C)September 26, 2026
Less than half of the gold processed by major refiners in 2018 came from major industrial mines, the London Bullion Market Association said Tuesday, releasing data that for the first time reveals the origins of the gold bars passing through their system. The LBMA said its accredited refineries, which dominate the industry and supply the world's largest banks, jewelers and manufacturers, processed 4,836 tons of gold in 2018 - an amount worth around $ 300 billion at current prices. According to this, 2,127 tons came from large industrial mines, 26 tons came from small and artisanal mines, and 2,683 tons was recycled gold such as jewelry, bars and coins that were returned to the market for melting and reshaping. The disclosure was part of the LBMA's first annual report on the implementation of its Responsible Sourcing Policy, which aims to prevent gold whose production is linked to human rights abuses, crime or environmental damage from entering the supply chain. Artisanal and recycled gold is riskier than that from large mines, as it often passes through many different hands and its origin is difficult or impossible to trace. The LBMA states that their refineries process more than 90% of the gold from large industrial mines, but they only take a tiny fraction of the roughly 550 tons that artisanal and small miners produce each year. The majority of this gold is processed by refineries outside the LBMA system, which are often less concerned with its origin. It can then go through the market called Recycled Gold. The LBMA said in the report that it is aware of the risks of recycled gold and that in addition to developing its own rules, it is also working with authorities in countries with large refineries to improve regulation.
