1. Introduction

This is the fourth gold and silver country-of-origin (CoO) report prepared by Metals Focus for LBMA and has two main objectives. First, to highlight some of the key points arising from LBMA’s 2023 COO datasets. And second, to compare and contrast the CoO data on mining and recycling with that published in the most recent edition of our annual Gold Focus, and the World Silver Survey, for the year in question.

Before comparing the Metals Focus and LBMA statistics it is important to clarify three things, the first that differences are to be expected between Metals Focus and LBMA data, with LBMA being limited to capturing CoO data from Good Delivery London (GDL) refiners. The second concerns each organisation’s recycling definitions and, finally, how the origin of mined concentrates are identified. In terms of the latter, quite often the GDL refiner will identify the country-of-origin as being where the concentrate was first refined, rather than where it was mined, with some of this material then re-classified as being recycled. The second point means that Metals Focus’ large-scale mining (LSM) total will exceed the LSM captured in the COO data, for both gold and, to a much greater extent, silver (as mined concentrates are far more common in the silver market).

In terms of recycling, and in keeping with previous COO reports, the Appendix breaks down in some detail the respective definitions of recycling. In short, Metals Focus’ definition includes gold recovered from end-of-life consumer / industrial products and unsold fabricated products, but excludes production scrap, the melting of GDL bars, and coins and bars sold back by investors (which we classify as disinvestment); other nuances are covered in the Appendix. In summary, LBMA’s current definition of recycling brings together all of the above segments. Notably, since the 2022 CoO survey, these have been split out into five categories, that are detailed below.

Even though there is a considerable gap between the two recycling definitions, LBMA’s new categories help to understand some of these differences. The other challenge is that the LSM figures are also not directly comparable. For example, as touched on above, not all LSM drops into the “LSM” CoO category. Instead, some is captured in at least one of the new CoO categories, including “Unprocessed”. As well as therefore making it difficult to compare LSM activity across LBMA and Metals Focus, it also creates challenges in interpreting, for example, the “Unprocessed” segment in its own right.

It is also worth noting that LBMA’s definitions continue to evolve, partly in the context of wider chain of custody requirements. For example, while recycling had been cited in previous versions of LBMA’s Responsible Gold Guidance (RGG), the introduction of RGG V9 in 2021 first aligned due diligence requirements of processing recycled materials with the OECD. Furthermore, RGG V10 (in draft phase) looks set to amend LBMA’s definition of recycling, to align more closely with the recently published ISO standard, a draft of which was also used in the Responsible Jewellery Council’s (RJC) December 2024 definition (as part of the RJC’s latest Chain of Custody Standard).

Source: Metals Focus, LBMA
*CoO/Metals Focus excludes Russia; **CoO excludes Russia, which is included in Metals Focus' data

For clarity, LBMA may therefore revise its recycling definition shown in the Appendix, once RGG V10 is published, which will mean an updated version of this report being made available on LBMA’s website. The final point to note concerns the expanded CoO categories introduced by LBMA last year. The explanation of these relatively new segments is set out below:

• Unprocessed Recyclable: Gold/silver in their original form, or as fabrication scrap, such as bullion bars, jewellery pieces, coins, or machine turnings, before being returned for processing and refining.
• Melted Recyclable Precious Metals: Gold/silver that have been melted as the initial recycling process and cast into rudimentary bars or other forms with undefined dimensions and varying purity levels.
• Industrial By-products: Materials generated while processing another primary material, but still holding value, examples of which are furnace flue dust, spent crucibles, and floor sweepings.
• Mixed Materials: Materials that combine multiple sources, such as mined and recycled metals.
• Legacy Stocks: Precious metal investment products (e.g., ingots, bars, coins, and grains in sealed containers) held in vaults of bullion banks, central banks, exchanges, and refineries with a verifiable date before 1st January, 2012. These stocks do not require a determination of origin and include those held by third parties on behalf of the listed entities.

Source: LBMA