Welcome to the LBMA Annual Report 2022.

The past year has seen a huge amount of activity by LBMA, as we continue to deliver against our strategic objectives.

The LBMA Board had to act following the Russian invasion of Ukraine, and the consequent international sanctions placed upon Russia and Russian entities. As a result, the right thing for LBMA to do was apply its rules which require the recognition of international sanctions. We also acted consistently with ensuring the integrity of the Loco London market.

As usual, global events have been affecting the gold price both upwards and downwards. Interest rates are much higher than in 2021 and rising in most of the world, following the rise in inflation globally. Although that may help to explain why the gold price has fallen from its record high after the invasion of Ukraine earlier in the year, the metal has been proving its worth as a liquid asset in periods of stress.

I suspect that higher inflation – and interest rates – are set to remain with us for quite some time, and there may be further episodes of market stress. Current inflation rates are remarkably similar across the US, the EU and the UK, and have risen above target in Japan and Switzerland, underlining the common nature of the inflationary shocks. Whatever one’s explanations of the cause, controlling inflation expectations to support lower inflationary outcomes could prove to be difficult.

Looking further ahead and to enhance the resilience of the industry, LBMA has made great strides in delivering its sustainability and responsible sourcing strategy this past year. Months of work culminated in the signing of the Declaration of Responsibility and Sustainability Principles by 14 signatories around the world at our Lisbon conference. The Declaration represents a huge step forward in bringing together key market players to work towards the same aim: a sustainable industry. This collaborative achievement complements our latest Sustainability and Responsible Sourcing Report, published in October, which details the work undertaken over the year and about which you can read more in section 3. I highly recommend you read the new report if you haven’t already.

Thank you for your support and engagement. I hope to see many of you during our upcoming events, following the indisputable success of the Lisbon conference.

Paul Fisher
LBMA Chairman