CEO’s Report

As the gold price increases, so does the significance of our work. As Paul highlights, the dynamic geopolitical and economic environment ensures that gold will remain in the spotlight in the coming year.

With the ever-growing global appeal of the gold market, LBMA’s standards will continue to evolve and we are confident will continue to gain further global adoption. These standards are key to maintaining market integrity through responsible sourcing practices and enhancing liquidity via more consistent good delivery and settlement protocols.

This renewed focus on gold has provided us with a unique opportunity to advance our key strategic initiatives. These include strengthening the Responsible Sourcing Audit Programme, advancing the Gold Bar Integrity (GBI) Ecosystem, advocating for gold’s recognition as a High-Quality Liquid Asset (HQLA), boosting Member satisfaction, promoting responsible sourcing of gold from artisanal and small-scale miners (ASM) and expanding access to educational programmes.

In March, LBMA announced the selection of aXedras to develop the GBI Database, promising enhanced transparency, security, and scalability in information sharing which will serve as a cornerstone of the broader GBI Ecosystem. By digitally tracing gold throughout the global value chain, the GBI Ecosystem will confirm provenance and provide greater transparency over the chain of custody. After a year of selection, design, and negotiations, we are thrilled that the GBI Database will launch in January 2025 - a significant milestone in advancing market integrity.

Our efforts around responsibly sourced ASM gold have made significant strides this year. Through the ASM Taskforce - a coalition of industry players, NGOs, and international organisations - we have successfully ended the silent boycott of ASM gold. The Taskforce introduced the ASM Toolkit, a transparent framework to help refiners source gold responsibly from ASM.

Additionally, we’ve deepened our understanding of on-the-ground realities in Ghana and Peru - two of the seven countries identified by the Taskforce as having the potential to supply responsibly sourced ASM gold. While there is still much work to do, the Taskforce’s efforts have built strong momentum. Find out more on page 12.

Another area of focus has been financial market development, particularly our campaign to have gold recognised as HQLA. While progress has faced challenges - partly because reclassification is not a top priority for central banks and regulators given current economic pressures - there have been notable developments. These include direct engagements with the BIS, IMF, and major central banks, as well as growing support from academia. An independent study by Professor Dirk Baur and Dr. Lai Hoang concluded that gold meets all HQLA criteria. This research, our discussion paper, and transparent LBMA Trade Data which highlights gold’s resilience during two crises, are helping to elevate this issue on central bankers’ agendas (see page 21).

Next Chapter of Integrity and Value for Members

I’m excited to introduce LBMA’s new Three-Year Strategy (2025–2027), designed to build on our commitment to integrity while creating even greater value for our Members. A key addition to this strategy is a new strategic pillar: Strategic Partnerships. This initiative focuses on strengthening and deepening our collaborations with global organisations and associations—including the Shanghai Gold Exchange, China Gold Association, CME Group, LPMCL, LPPM, World Gold Council, SBMA, and IPMI—transforming them into truly strategic partnerships which are directed at working together to create a bright future for our industry.

Through this work, we aim to expand our global reach and influence, reinforce industry standards, and drive innovation, both in Loco London and in all regions where Good Delivery is recognised. The COVID-19 pandemic underscored how interconnected the gold industry and the global economy are, and highlighted the critical importance of harmonising standards and aligning innovation efforts. Building on the achievements of the past three years, I look forward to driving further advancements in these areas.

The next phase of the Responsible Gold Guidance (RGG) will continue to emphasise transparency and the industry’s role in addressing this challenge, alongside broader efforts outlined in our ambitious Sustainability Strategy. Success will depend on your engagement, robust support, and spirited debate to ensure that LBMA remains the leading standard for the global precious metals industry.

For more details on our immediate priorities and long-term vision, please refer to the strategy illustration below.

70% Member Satisfaction Achieved

This year, we once again reached out to our Members through an in-depth satisfaction survey to better understand how well we are representing your needs in the market and to assess our performance in delivering high levels of service. The results are in, and they’re worth celebrating. Member satisfaction has climbed to 70%, a marked improvement from 2021 in the last in-depth Member survey. Even better, dissatisfaction has dropped down from 8% three years ago to just 2% today – a testament to our unwavering focus on improvement.

Our new strategic pillar on strategic partnerships is already gathering support: 80% of respondents see it as a high priority for the market. Members shared exciting feedback about how stronger partnerships could transform the industry, from improving supply chain connectivity to unlocking new opportunities.

When it comes to LBMA’s core mission, the survey also highlighted strong momentum, as 52% of respondents see advancing standards as our primary role, up from 45% in 2021. A resounding 75% agree that we’re successfully meeting our promise on delivering against that mission.

We recognise the vital role our Members play in our work and we are committed to ensuring LBMA continues to meet your needs and exceed your expectations.

As we embark on this new phase of growth, we invite you to share your thoughts, whether about our Strategy, our communication efforts, or how we can work better for you. If you have any questions or ideas, please get in touch.