Gold Is Rare, but Not Disappearing: Recycling, Mining, and a Surprising Comparison to Bitcoin

By Ami Gur, Materials Engineer and Founder of A.G. Metals

While Bitcoin and gold compete for the title of “ultimate scarce asset,” gold retains a clear advantage: it’s tangible, recyclable, and widely used in industry, medicine, and technology. But does gold’s high recycling rate make it infinite? And how does it compare to digital currencies?

⬆️ High Recycling Rates – Gold Keeps Coming Back

Estimates suggest that around 83% of all gold currently in use (in jewelry, bullion, electronics, etc.) remains in active circulation. Unlike many other materials, gold does not rust or degrade, so nearly every gram ever mined still exists—in bank vaults, medical labs, or on someone’s wrist.

And the remaining 17%?

Some gold is kept privately and never re-enters the market; some is lost over time through wear, discarded products, or irrecoverable forms. So while gold is highly recyclable, it’s not unlimited—a slow but ongoing loss occurs over generations.

⚖️ Gold Mining – More Expensive Each Year

Despite high recycling rates, the world still requires newly mined gold—and extracting it is becoming increasingly expensive and complex due to several factors:

• Declining ore grades: Rich gold mines are largely depleted; today’s mines often yield less than 1 gram per ton.
• Deeper and more remote mines: Harsh conditions and logistical challenges increase operational costs.
• Environmental regulation: Strict rules require land rehabilitation, pollution controls, and safer chemical usage.
• Rising input costs: Energy, labor, equipment maintenance—all becoming more expensive.

The result: each gram of newly mined gold costs more in both financial and environmental terms.

✈️ Gold in Industry: From Medicine to Aerospace

Gold is not just a symbol of wealth—it’s a fully functional industrial metal:

• Medicine: Gold nanoparticles in cancer therapy; gold dots on stents for X-ray visibility.
• Technology: Gold-coated connectors, bonding wires, thermal imaging detectors.
• Aviation: Gold brazing in fuel lines, anti-radiation coatings, gold contacts in navigation systems.
• Science & Space: Gold foil on satellites, optics in gravitational wave detectors, atomic clocks.

These uses contribute to gold gradually “disappearing” from the recyclable pool—accelerating its long-term scarcity.

🔎 Gold vs. Bitcoin – Gradual Wear vs. Instant Loss

Bitcoin is capped at 21 million coins. But unlike gold, lost Bitcoin cannot be recovered. If you lose your private key or wallet, the coins are gone forever.

It’s estimated that around 20% of all mined Bitcoin is permanently lost. So, Bitcoin’s rarity isn’t only due to its fixed supply—but because there’s no way to recycle or retrieve lost coins.

On the other hand, gold—despite being highly recyclable—slowly diminishes through industrial use and loss over time, making it, paradoxically, more “consumable” in the long run.

✨ Final Thought: Real Scarcity Is a Function of Time

Gold may return to the market repeatedly, but the loss is slow and steady. Bitcoin doesn’t wear out—it just vanishes when forgotten.

In a world seeking sustainable, scarce assets—gold remains unique: physical, recyclable, yet undeniably finite. Not just in the mines—but in what the world can actually return to circulation.