Responsible Sourcing Report 2021
Section 9: LBMA and the Global Bullion Market
LBMA plays a key role on behalf of the global precious metals market to ensure business integrity by advancing standards, acting as a voice and champion for the market, and developing market solutions.
Global Gold market 2021 YTD
The Loco London Precious Metals Market (also known as ‘Loco London’) is the largest and oldest financial market for gold in the world, dating back to 1671.
In terms of liquidity and market size, the average daily volume for the Loco London market is US$55 billion, with approximately 9,700 tonnes of gold, worth around $550 billion, stored in the London vaults.
Key to the efficient functioning of this market is metal moving freely between market participants and the London vaults within the clearing system.
THE AVERAGE DAILY VOLUME FOR THE LOCO LONDON MARKET IS US$55 BILLION, WITH APPROXIMATELY 9,700 TONNES OF GOLD, WORTH AROUND $550 BILLION, STORED IN THE LONDON VAULTS.
For LBMA, this means that the requirement of what goes into all bars produced by its Good Delivery List (GDL) refiners is as important as the standard of the final product. It was for this reason that LBMA established the Responsible Sourcing Programme (Programme).
By setting standards for refiners’ mineral purchasing decisions and practices, the scope of the Good Delivery List (GDL) has grown beyond the physical aspects of Good Delivery bars.
Responsible sourcing requires that firms go beyond financial, logistical and even reputational considerations, to take into account the wider impact of their own actions and those of their suppliers.