JOHANNESBURG (miningweekly.com) – In terms of sustainability and responsible sourcing, the 2025 focus of the independent London-based precious metals association – the LBMA – will be on mandatory disclosure, recycled gold and auditor consistency, the association’s assaying and refining conference heard on Monday, March 17.

“Our sustainability and responsible sourcing strategy is ambitious, and we know we cannot do it alone. We need action from the entire global value chain, from ‘rock to ring’", were words flashed across the screen where South Africa’s Rand Refinery is being highlighted as one of the dozen top sponsors, and also as a high-status referee of LBMA’s good delivery programme. (Also watch attached Creamer Media video.)

LBMA stands for the London Bullion Market Association, an international trade association representing the global over-the-counter bullion market for gold and silver, with a focus on setting standards and promoting integrity in the precious metals industry.

What is emerging very loudly and clearly currently is that investors are increasingly moving into gold to shelter themselves against political and economic volatility.

“Many of you are aware that the gold price is over $3 000, as of Friday,” LBMA CE Ruth Crowell told the 250-delegate conference, covered by Mining Weekly.

“You may also have been aware that lease rates were at their all-time high, and part of that is there's been so much metal in motion from all over the world into the United States that it started to prompt so many headlines about, is London running out of gold?”, even though the actual decrease in London’s gold holdings was 1.74%, which the world would not have known were it not for the invaluable transparency that LBMA is providing.

“I'm delighted to say one of my key achievements has been bringing more transparency to the market. It's a 300-year-old market, but it's only recently that we started publishing vault holding stocks, as well as trade data,” Crowell pointed out, which meant that when the true numbers went out on Friday, the world was able to take note of the moderate 1.74% reality, which proved mollifying.

“You instantly saw a calming in the market in terms of people knowing where they stood,” Crowell noted.

While this may not necessarily have been stimulating data in the days preceding current geopolitical turbulence, it's hugely sought after in this period of global disruption, which renders the LBMA’s strong recent drive towards transparency very rewarding.

GOLD BAR INTEGRITY DATABASE

On the gold bar front, Crowell expressed delight in being able to reiterate that the LBMA’s gold bar integrity database, the journey of which began ahead of the Covid pandemic, was launched in January.

“I'm even more delighted to say over 50% of refiners are already on board, and the rest have already engaged and are getting there.

“My favorite comment over the last few months, in terms of what's happened since the launch, is just how easy it is to do.

“But for those of you who are still a little confused, It's about creating transparency and trust in the gold that we all treasure.

“LBMA’s role in that ecosystem is to robustly and efficiently collect the data we currently receive from you as refiners, both in terms of responsible sourcing as well as production numbers, financial net worth, in a secure, transparent database that the team can interrogate more smoothly.

“Some of the biggest use cases for this data is for anyone trying to ensure sanctions compliance, as well as customs compliance, something that certainly started as a focus with the outbreak of war in the Ukraine, but also in terms of this uncertain world we live in when it comes to tariffs. So, all of this is about driving trust and transparency and ensuring the robustness of the market,” Crowell emphasised.

TRADING TURBULANCE FORECAST TO CONTINUE

LBMA’s drive is poised to be of benefit to the precious metals market as a whole as the global economy faces trade war and tariff imposition uncertainty.

“One thing we can be certain of is that turbulence will continue, and we need to make sure that we have the technology to allow us to respond to it and to ensure the continued strength of the global industry.”

Amid the turbulence, LBMA is moving towards real-time reporting for which it needs collaborative industry engagement, with this year's focus being on further audit programme improvement, mandatory refinery disclosure, and the definition of recycled gold.

TWO MORE GOOD DELIVERY REFEREES

Joining well-established Rand Refinery of Germiston as the latest good delivery programme referees are Agosi AG and The Perth Mint. The other four are Argor-Heraeus SA, Metalor Technologies SA, MKS PAMP SA, and Tanaka Kikinzoku Kogyo.

Adding two new referees, adds resources to streamline technical processes and new good delivery list applications.

The referees maintain the technical good delivery programme by offering technical assessment of applicants for listing, anonymous proactive monitoring of refiners on the list, and technical advice on a range of topics.

The good delivery lists for gold and silver maintained by LBMA ensures that only bars that meet Good Delivery standards are acceptable in the physical settlement of a London gold or silver transaction.

The high level of consistency within the London market is maintained by ensuring the quality of metal traded.  Both refiners and vaults are required to implement the good delivery rules relating, for example, to a bar’s assay, weight and markings.