Responsible Mining vs. Recycled Gold

Saskia Shutt — Sun, 18 May 2025 10:15:35 +0000

As a goldsmith and designer working with precious metals for over two decades, I am often asked: “Why do you choose Fairmined gold over recycled gold?” Or: “Isn’t recycled gold the most ethical choice?”

These questions are important. I am glad people ask them.

To answer properly, we need to look at where our gold comes from. There are two main types of mining: artisanal small-scale mining (ASM) and large-scale mining (LSM).

Understanding ASM and LSM

Large-Scale Mining in a Nutshell

LSM refers to industrial mining operations carried out by multinational or large national companies. These operations are highly mechanised, relying on heavy machinery and advanced technology rather than manual labour. They’re managed by corporate entities that bring in their own teams of engineers, geologists, and specialised workers, often from outside the local area. While LSM can generate significant profits and export revenues, the communities living near these vast mining sites rarely see tangible benefits. Jobs for locals are limited, and the promised infrastructure or social investment often fails to materialise. The scale of extraction is enormous — machines dig deep into the earth, carve open-pit mines, or even flatten entire mountains to access mineral-rich seams beneath the surface. Impacting the environment is equally as large, with deforestation, loss of biodiversity, water pollution, and land degradation becoming ongoing concerns.

Artisanal and Small-Scale Mining

ASM is a world apart from large-scale industrial operations. Human, hands-on, and deeply interwoven with local livelihoods. These miners — often families or small groups — use rudimentary tools, guided by knowledge passed down through generations. Physical, labour-intensive work, and frequently perilous. Yet it’s also a source of pride, resilience, and survival in many regions.

Despite producing only around 20% of the world’s newly mined gold, ASM supports far more people than industrial mining ever does. An estimated 40 to 50 million people work directly in ASM worldwide, with over 150 million more depending on it indirectly. Through trade, transport, food supply, or other services linked to mining communities.

However, there’s a harder side to this story too and ASM is not without challenges. Without proper support or regulation, ASM can cause serious harm. In many regions, using mercury to extract gold from ore is the main ingredient. Inevitably contaminating soil, rivers, and the health of entire communities. Cyanide, too, is sometimes misused. Furthermore, because many ASM sites are in remote, conflict-prone, or lawless areas, miners may face exploitation — caught in cycles of debt, controlled by criminal groups or local militias, or subjected to unsafe and inhumane working conditions.

This is why initiatives like Fairmined (South America), Fairtrade (South America), Peace Gold (Africa), and Mercury Free Mining (Africa) exist. Supporting ASM communities to mine more safely and sustainably.

Supporting the Good in ASM

Even with the challenges facing artisanal mining, there are powerful efforts to change things. One of the most impactful is Fairmined — a certification system developed by the Alliance for Responsible Mining supporting small-scale mining communities in Latin America. Helping miners operate legally, safely, and sustainably, offering training, environmental protection, fair pay, and investment in their communities.

Before a mine becomes Fairmined certified, it must first meet the standards of the CRAFT Code — an initial step ensuring basic legal, social, and environmental criteria are met. Only then can a mine progress toward full Fairmined certification. Involving strict requirements for traceability, responsible practices, and mercury-free extraction.

At present, there are just eight Fairmined certified gold mines in the world: four in Peru, three in Colombia, and one in Ecuador. This small number highlights how rigorous the standard is — and how meaningful the certification truly is. In 2018 Fairmined certified a mine in Mongolia, However, it lost it’s certification fairly quickly. Due to Chinese Government not wanting the mine to work according to the Fairmined standard. They would not gain any money from the mine’s proceeds due to the Fairmined standard.

When I buy Fairmined gold, I know exactly where it comes from. Mining with care for people and planet, without mercury, and with a clear, traceable path from mine to maker. In addition, Fairmined is not just a label — it’s a commitment to real, visible change.

What About Recycled Gold?

Currently we’re hearing that recycled gold is the most ethical or ecological choice. I disagree.

Recycling Gold exits for centuries. Because gold is valuable, it’s rarely thrown away. We’ve been melting it down and reusing it since it’s discovery by ancient civilisations as early as 4000 BC.

Remembering recycled gold is initially mined before it becomes components in IT or the jewellery industry. Moreover, the definition for recycled gold is not clear-cut. In reading the LMBA the definition, it is very broad and, in my opinion, needs to be tighter/more defined. Above all, the refining of gold and other precious metals is done by using high quantity of energy and various acids during the separation and refining. They also fail to mention initiatives such as Fairmined, Fairtrade, Peace Gold and Mercury Free Mining in their report, when talking about ASM.

Currently, the world has enough mined gold to fill five Olympic swimming pools. But only about 10% is accessible. The rest is locked up in jewellery, banks, electronics, or medical tools.

Recycling that gold does not reduce the demand for new mining. We’re still extracting more. The mountain grows. China demands approximately 26% of the national gold demand Europe’s demand is approximately 12% .

Refining Is Not Clean

Gold recycling is not a clean process. Refineries use huge amounts of energy and strong acids to extract and purify gold. It’s resource-intensive.

What about the source of the recycled gold? That’s a bit murky.

Refineries buy from pawnshops. They buy from people who’ve had their homes burgled. Some recycled gold comes from illegal mining, made into jewellery and passed through pawnshops. It ends up back at the refinery and is resold to jewellers — labelled as “recycled”.

Where’s the traceability? Or the transparency?

So when I hear recycled gold called ethical or ecological, I feel deeply uneasy. There is not enough transparency in the recycling of precious metals. I believe we need more legislations on transparency within the recycled precious metals refineries.

It’s also worth mentioning something I feel strongly about: personally, I don’t consider remodelling old gold jewellery as “recycled gold”. I do a lot of remodelling and transformation work for my clients — it’s one of the most beautiful and meaningful aspects of my work. But to me, calling that recycled isn’t accurate. The term “recycled gold” is still far too loosely defined and widely misused. In my experience, remodelling is almost always born out of sentimental or financial motivations — not environmental ones. People come to me because they want to honour family heirlooms, repurpose inherited jewellery, or give something old a new life — not necessarily because they’re seeking to reduce mining or environmental impact. And I believe that distinction matters.

I’m Not Against Recycling

To be clear: I do use recycled platinum and palladium, these I buy from Argentor refinery and bullion dealer in Antwerp. They are a reputable firm. I also bring my scrap there for refining. It makes the loop feel more circular.

Recycling is a standard practice within a jewellery workshop. Throwing away scrap or filings is unacceptable. Reclaiming precious metals is a circular way of working. Most importantly, practicing recycling of precious metals is centuries old.

In conclusion, recycled gold is not the solution to the world’s gold problem. Recycling is part of a complex system. Above all, it doesn’t replace the need for responsible mining.

A Call for Informed Choices

Giving consumers in-depth information is important for them to make valid choses. However, I am not saying that responsible mining is perfect. But it does support peoples’ livelihoods all along the short supply chain.

They deserve to make informed decisions. To know where their gold comes from. And knowing whether it supports real people, real communities — or just hides the past.

When talking about sustainability in fashion, we talk about slow fashion. I believe adding slow mining as a concept is paramount to sustainability too. Subsequently, for a more sustainable world, capping/limiting the LSM production (which I realise is utopic) is vital, as LSM are huge money-grabbing corporations). Focussing on ASM for longevity in a sustainable world.

Fairmined gold is the embodiment of slow mining. It’s respectful, thoughtful, and deliberate. Empowering communities. Creating change.

Governments in Peru and Colombia have already banned mercury in mining. It’s the illegal, informal mining that still uses it. These are hard areas to regulate. But they are only a small part of ASM. We don’t even have exact data on how much.

So why not support the miners who are doing it right?

Let’s Support a Better Future

In conclusion, I beleive, Fairmined, Fairtrade, Peace Gold, and Mercury-Free Mining all work to create a better way forward.

By supporting these projects, we are contributing to:

Fair wages
Safe mining conditions
Environmental protection
Community investment
Education for miners’ children
Social security and life insurance

Giving families a future. We’re turning gold into a force for good.

I believe that’s worth supporting. Let’s create your jewellery ideas.

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Birthstone for August

Saskia Shutt — Tue, 04 Aug 2015 13:51:19 +0000

Peridot: The Birthstone for August

Peridot, the vibrant birthstone for August, dazzles with its vivid olive-green colour enhanced by hints of gold. Known as “the gem of the sun,” this gemstone symbolises warmth and vitality. Its rich history, which begins in ancient Egypt, highlights its enduring beauty and significance. Whether you’re an August baby or simply love its radiant charm, peridot connects you to the sun’s energy while blending tradition with modern elegance.

Folklore and Origins of Peridot

Peridot, born from fire, forms in volcanic rock and meteorites. Ancient miners first sourced it exclusively in Egypt. Later, miners discovered peridot in the mountainous regions of Pakistan, where they could only extract it during summer. This link to harsh summer mining conditions makes peridot a perfect birthstone for August.

The Meaning Behind the Name Peridot

The name “peridot” has a mysterious origin. It could stem from the Greek word peridona, meaning “to give richness,” or the Arabic word faridat, meaning gem.

A Gemstone with a Rich History

Peridot boasts a fascinating history. Egyptians treasured it as early as the 2nd millennium BC, calling it “the gem of the sun.” While its allure faded for a time, new mines discovered in Pakistan during the 1990s reignited its popularity. Find out more in my revisited article on peridot.

Where is Peridot Found Today?

Gem-quality peridot now comes from many regions beyond its original source on St. John’s Island, Egypt. Today, miners find it in Norway, Pakistan, Brazil, Australia, South Africa, Myanmar, China, and the United States.

Discover the timeless allure of peridot with me. Let its radiant charm illuminate your jewellery collection with a touch of warmth, tradition, and elegance.

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