Posts Tagged ‘precious metals’

Diamonds are suddenly everybody’s best friend

Saturday, May 31st, 2014

Several years ago the term “urban mining” took off. It referred to the discovery of precious metals that were “buried” in people’s homes in the form of personal possessions like jewelry and home electronics that they weren’t using. A lot of cell phones, for instance, use gold and other valuable materials in their circuits, and when the price of these substances was high, brokers would pay premium prices for them, no matter where they came from or what form they were in.

Komehyo outlet in Ginza, Tokyo

Komehyo outlet in Ginza, Tokyo

At the time, gems were not coveted so much, but that’s changed. Right now, the price of diamonds on the world market is about 30 percent higher than it was a year ago, according to a recent article in Chunichi Shimbun, thanks to a healthier world economy. Consequently, well-to-do people in Asia, North America and the Middle East are craving diamonds, and foreign buyers, particularly from the U.S., China, India and Dubai, are flocking to Japan because they think there are a lot of the rocks here “sleeping” in people’s closets and vanity cases.

The reason is simple. During the bubble period of the late ’80s, when the value of various assets was higher than it probably should have been, people with even a little money bought a lot of jewelry that they don’t wear any more. Many of these people probably have forgotten they even have diamonds.

Komehyo, the Nagoya-based retailer that specializes in recycling high-end merchandise such as designer accessories and expensive jewelry, is spearheading the drive to get Japanese people to dig into their tansu (wardrobes). As one of the company’s store managers told Chunichi, another reason foreign buyers are descending on Japan is that the diamonds are already cut, and used cut diamonds tend to be cheaper than new ones, though there really isn’t any difference in quality. Komehyo is hoping to sell used diamonds in bulk and is offering premium prices to anyone who wants to unload theirs. The chain has launched a Diamond Purchase Fair at all its 20 outlets throughout Japan.

In order to get a handle on the market, Komehyo conducted a survey among men and women over the age of 20. They found that, on average, respondents have each spent about ¥780,000 on “jewelry, watches, bags and brand goods” during their life so far.

Several years ago Tanaka Kikinzoku Kogyo, a dealer in gold and other precious metals, carried out its own survey and found that 80 percent of female respondents have jewelry they don’t wear any more, either because they no longer like the design, or lost one earring or just forgot about it. The company calculates that the average woman in this group has ¥40,000 worth of jewelry they never wear. Tanaka was interested in gold, however,

Based on its own findings, Komehyo estimates the average person possesses about ¥160,000 yen’s worth of jewelry and other valuables that they don’t use any more, which means there could be as much as ¥15 trillion worth of diamonds in people’s homes.

There’s gold in them there wardrobes!

Thursday, August 18th, 2011

If you've got bars of it, you're good as gold, but tooth filings and eyeglass frames will do. (Kyodo photo)

A term that has suddenly come to the fore in recent months is “urban mining,” the idea that there are precious metals in the everyday objects that surround us that can be recycled. The most prominent example is old cell phones, which contain both iridium and gold. There’s not enough in one to make its owner rich, but, for instance, a ton of ore from a gold mine typically gives up only 5 grams of real gold, while a ton of discarded cell phones could represent as much as 150 grams of gold.

Japan is generally acknowledged to have the largest potential urban mine of any country in the world. It is believed the general public possesses 6,800 tons of gold, mostly in the form of jewelry and accessories, but also in ingot and bar forms, not to mention “hidden” gold in electronics devices. (Many Japanese keep their old cell phones because they want to hold onto the data they contain.) That’s the equivalent of 16 percent of what is estimated to be all the “uncovered” gold in the ground worldwide. Silver is even more: 60,000 tons, or 22 percent of the amount still buried.

Continue reading about a new sort of gold rush →

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