Gold jewellery demand fell to its weakest level in almost 20 years in the first quarter of 2009 while recycling of scrap reached record levels as the global economy sank deeper into recession.

“Recycling of gold became a global phenomenon in the first quarter of this year,” said Rozanna Wozniak, investment research manager of the World Gold Council: “The wave of recycling activity clearly shows that used jewellery is not a ‘waste’ product.”