Crucible 30 Archives - Singapore Bullion Market Association https://sbma.org.sg/category/media-centre/publication/crucible/crucible-30/ Singapore Bullion Market Association Thu, 06 Nov 2025 08:57:35 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://sbma.org.sg/wp-content/uploads/2016/11/cropped-site-identity-logo-32x32.jpg Crucible 30 Archives - Singapore Bullion Market Association https://sbma.org.sg/category/media-centre/publication/crucible/crucible-30/ 32 32 THE ASEAN GOLD MARKET –A 2024 UPDATE https://sbma.org.sg/media-centre/publication/crucible/crucible-30/the-asean-gold-market-a-2024-update/ Thu, 09 May 2024 08:31:00 +0000 https://sbma.org.sg/?p=27500 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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THE ASEAN GOLD MARKET – A 2024 UPDATE

By Nikos Kavalis, Managing Director, Metals Focus Singapore Pte Ltd

As the Singapore Bullion Market Association celebrates its 30th anniversary and the global bullion industry gathers in Singapore for the 7th Asia Pacific Precious Metals Conference, we take the opportunity to review how the ASEAN’s precious metals markets have evolved over the past few years and consider what the future may hold for the region.

A GROUP OF VIBRANT AND GROWING ECONOMIES

Home to nearly 680 million people, the ASEAN group comprises a number of vibrant and fast-growing economies. Most countries in the region have enjoyed robust economic growth in the past decade, in most cases exceeding the global average. Collectively, ASEAN countries’ GDP amounted to an estimated US$3.8 trillion in 2023. When measured in purchasing power parity (PPP) terms, combined ASEAN GDP during the year accounted for 6.4% of the global total and was equivalent to around one-fifth of that of emerging and developing Asia. The past decade has also seen most ASEAN countries enjoy robust per capita income growth. Real GDP per capita, again on a PPP basis, enjoyed cumulative gains over the period in all countries bar one in the group, ranging from 16% to 61%. It is worth noting that the economic data quoted here has been sourced from the International Monetary Fund’s (IMF) latest World Economic Outlook database, released in April 2024.
Looking ahead, these trends are set to continue for the foreseeable future. The IMF’s latest projections show decent economic growth across all member countries. By 2029, the organisation forecasts ASEAN’s combined GDP to have reached US$5.8 trillion in nominal terms, with its PPP contribution to global GDP reaching 7%. Crucially, per capita GDP within the group is also expected to enjoy healthy gains, underpinning the continued growth of the region’s middle classes.

ASEAN Countries’ Share of Global GDP, History & Forecast*

SBMA THE ASEAN GOLD MARKET 2024
*Based on purchasing-power-parity (PPP)
Source: IMF World Economic Outlook, April 2024

HOME TO KEY MID-TIER GOLD MARKETS AND A TRADING HUB

While the gold demand and supply within the ASEAN cannot compete in size with China and India, the group includes some important mid-tier gold markets. Indonesia, the Philippines, Thailand, Vietnam and Malaysia are all important sources of gold supply and/or demand. Meanwhile, through the efforts of the SBMA and the support of the country’s government, Singapore has evolved into a key regional trading, refining and vaulting hub, servicing Southeast Asian markets and fortifying the region’s links to the rest of the globe.
Indonesia is the ASEAN’s largest mine producing nation, with total output of 134 tonnes in 2023. It is home to Grasberg, which although a primary copper mine, was the world’s largest gold producing mine in 2023. Indonesia also has sizeable local bar and coin as well as jewellery markets and, as a result of the latter, generates large volumes of recycled gold. It is finally worth noting that the country also hosts one of the three LBMA-accredited refineries within ASEAN.
The Philippines is the other major source of primary gold supply in the region, with annual production of 41 tonnes in 2023. The country’s central bank has a long history of activity in the gold market, operating an LBMA-accredited refinery and supporting the local artisanal and small-scale mining sector. Gold demand in the Philippines is still relatively small, however it has been enjoying healthy growth in recent years.
Thailand has a vibrant two-way gold market. At its peak, bar and coin demand in the country reached 135 tonnes. While last year’s figure of 34 tonnes may seem small in comparison, one needs to take into account the rise in electronic gold trading options available to Thai investors in recent years, which has cannibalised bar and coin sales. The much higher price, of course is another factor – the Thai baht-denominated gold price average was more than 50% higher last year than in 2013. Thailand can also be a major source of disinvestment and scrap.

Key ASEAN Countries Net Retail Investment Demand

SBMA THE ASEAN GOLD MARKET 2024
Source: Metals Focus
Vietnam is another historically strong gold bar and coin market. Concerns about currency depreciation have underpinned demand for gold in the country. It is interesting to note, for instance, that in spite of Vietnamese income levels being far lower than in Thailand, at its 2011 peak of 94 tonnes, retail investment for physical gold in the country was only around 15% lower than Thai demand during that year. Government restrictions on gold imports, which have resulted in exceptionally high premiums, coupled with growing interest in real estate and equities among investors, have put pressure on demand volumes. However, the 40 tonnes of retail investment recorded last year still comfortably leaves Vietnam in the top-10 biggest markets globally.
Malaysia, finally, is a major jewellery fabricator and exporter, primarily to the UAE but also to a handful of Asian markets.
Last but not least, Singapore is the ASEAN’s trading, refining and vaulting hub. With a population of less than 6 million, it is no surprise that neither retail investment demand nor jewellery are significant in the country. However, due to its business-friendly environment and rule of law, Singapore has attracted a number of key precious metals market intermediaries, who have set up trading operations there. Its expansive network of flights connecting it to the region and the rest of the world, as well as its safety, have also attracted secure transport and vault operators. The development of vaulting facilities has also been helped by the country’s reputation as East Asia’s premier wealth management centre. Finally, a growing need for Asian processing capacity, coupled with government support saw the establishment of Metalor’s refinery, an LBMA-accredited operation, in the city-state, which has further boosted Singapore’s role as a regional hub.

STRUCTURAL CHANGES TO GOLD INDUSTRY AN OPPORTUNITY FOR ASEAN

The past two decades have seen a structural transformation take place in the precious metals industry, particularly the gold market. Some of the period has seen Asian demand experience breakneck growth, and the overall importance of the region has increased. Combining Metals Focus and GFMS data (as Metals Focus’ own series only goes back to 2010), we calculated that the share of global gold demand that East Asian jewellery fabrication and retail physical gold investment rose from 16% in 2003 to a peak of 37% in 2013 and has in recent years normalised a little lower, in 2023 at an estimated 25%. When including South Asia and the Middle East, the respective shares rose from 46% in 2003, to a 67% peak in 2013, reaching 57% last year.

Key ASEAN Countries Jewellery Fabrication

SBMA THE ASEAN GOLD MARKET 2024
Source: Metals Focus
All this has also gradually shifted the centre of gravity for global precious metals trading and physical flows. What once was very much a London, New York and Switzerland-dominated market has evolved into a multilateral framework. To be clear, London remains the centre of precious metals liquidity, New York continues to play a leading role in price discovery and Switzerland continues to account for a large share of global refining throughput. However, regional exchanges have grown in importance, over-the-counter transactions between Asian counterparties are increasingly common, as are physical flows within the region, helped by the increase in local refining capacity. As the chart below illustrates, ASEAN’s two largest gold exporters, Indonesia and Thailand, have seen their share of exports with other ASEAN countries increase considerably over the past decade.

Share of Bullion Exports Shipped to ASEAN Countries*

SBMA THE ASEAN GOLD MARKET 2024
*Includes exports under the 710812 HS code
Source: Thai Customs Department, Statistics Indonesia, Metals Focus
This has been transformational for ASEAN precious metals industry players. We have seen numerous dealers, refiners and fabricators with businesses originally limited to a single country or small group of countries grow and develop a strong international presence. The proximity, in terms of geography, time zone and culture of the ASEAN region to China and the opening up of the latter’s gold market through the International Board of the Shanghai Gold Exchange have also helped. Last but not least, the development of Singapore’s ecosystem has provided the necessary framework to facilitate these changes.
While much has been achieved, there remains huge opportunity for growth for the region. Internally, the continued growth of ASEAN economies and local consumers and investors affinity for gold should underpin rising local consumption and investment demand. Meanwhile, as China’s gold market continues to evolve and as Dubai is also undergoing its own transformation, ASEAN precious metals industry participants have an opportunity to participate directly in this increasingly decentralised framework. Singapore’s hub will continue to play a decisive role in this, and we look forward to the next phase of the development of its precious metals ecosystem.
Nikos Kavalis
NIKOS KAVALIS is a founding partner of Metals Focus. He has over 20 years of experience in precious metals, having previously worked for the Royal Bank of Scotland and GFMS. Since September 2019, Nikos has been based in Singapore, where he also runs the local subsidiary of Metals Focus.
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]]> CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION https://sbma.org.sg/media-centre/publication/crucible/crucible-30/celebrating-30-years-of-excellence-the-singapore-bullion-market-association/ Thu, 09 May 2024 04:07:16 +0000 https://sbma.org.sg/?p=27450 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION

By SBMA

The Singapore Bullion Market Association (SBMA) is proud to celebrate its 30th anniversary this year. This milestone marks a significant journey for the organisation, which has played a pivotal role in shaping the landscape of the precious metals industry in Singapore and the wider Asian region.
This special feature brings together congratulatory messages from our valued member companies and business associates. Their words reflect not only the achievements of the SBMA but also the spirit of collaboration and innovation that has driven our success.
As we look ahead, the SBMA remains committed to its core mission: to promote the interests of the precious metals industry and establish Singapore as a global hub for this vital asset class. We are confident that the coming years will bring even greater opportunities for collaboration, innovation, and growth.
In the following pages, you will hear from industry leaders who share their perspectives on the SBMA’s journey and their hopes for the future. We invite you to join us in celebrating this momentous occasion!
editorial

Albert Cheng

CEO, Singapore Bullion Market Association

CONGRATULATORY MESSAGES FROM MANAGEMENT COMMITTEE MEMBERS

Congratulations to SBMA on reaching this significant milestone of its 30th anniversary! Your unwavering dedication to advancing the interests of the precious metals industry has been truly commendable.
Looking ahead, my hope for SBMA’s next chapter is to continue driving innovation and collaboration within the bullion industry, further solidifying Singapore’s position as a global hub for precious metals. Building on the momentum gained in recent years, I envision SBMA playing an even greater role in facilitating cross-border trade, promoting sustainable practices, and nurturing talent within the industry.
Additionally, I believe there is immense potential for Singapore to enhance its collaboration with key players in the Asian gold market, such as China, India, Australia, and ASEAN neighbours. By leveraging our collective strengths and expertise, we can unlock new opportunities for growth and establish Singapore as a premier destination for refining, trading, and custody of physical precious metals.
— KL Yap, General Manager, Singapore Refining Unit, Metalor Technologies (Singapore) Pte Ltd & SBMA Chairman
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2017: Signing of a Memorandum of Understanding between the Chinese Gold & Silver Exchange Society and the Singapore Bullion Market Association at the inaugural APPMC 2017.
The 30th anniversary not only symbolises three decades of existence but also embodies a celebration of courage, resilience, and the unwavering belief in turning dreams into reality. SBMA has evolved into a prominent regional bullion association, facilitating industry participants in expanding their business endeavours. Congratulations on SBMA’s remarkable achievement on its 30th anniversary!
— Vinh Nguyen, Head of Precious Metals, Asia, StoneX APAC Pte Ltd & SBMA Vice Chairman
Congratulations to the Singapore Bullion Market Association on reaching its remarkable 30th anniversary milestone! It has been an incredible journey working alongside such dedicated individuals and industry experts, all driven by a common goal: to elevate and innovate the bullion market landscape in the region. Together we have navigated through challenges, explored opportunities and built a foundation of trust and integrity. We still have a lot of work ahead of us but are confident in what future holds for the SBMA and its members. Also, big thanks go to the past & present leadership and secretariat team for their dedication and determination. Here’s to three decades of excellence in the bullion market and to the exciting journey ahead!
— Kazuya Naoki, Head of Metals, Asia, ICBC Standard Bank Plc, Singapore Branch & SBMA Honorary Secretary
On behalf of Brink’s Global Services, I would like to congratulate the Singapore Bullion Market Association on their 30-year anniversary. A significant milestone. Happy birthday SBMA! I would also like to extend a heartfelt thank you to Albert Cheng, Margaret Wong, Fabian Lew from the SBMA, the office bearers (both former and present), the management committee and the members for making SBMA what it is today. A special acknowledgement to Albert and Margaret for their leadership, drive and determination which pathed the way forward.
Reaching a member base of 69 and counting, its numerous successes and international standing are commendable. The SBMA has created a healthy and professional environment for market players and associations to cement relationships to work together to drive growth. Through dedication and rigor, the SBMA has been a driver to market development in the Lion City, Asia, and rest of the world. We look forward to the next 30 years and the Forward SBMA 2030 initiative!
— Andrew Clarke, Head of Brink’s Global Services, Brink’s Global Services Pte Ltd & SBMA Honorary Treasurer
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2018: Signing of a Memorandum of Understanding between the Vietnam Gold Traders Association and the Singapore Bullion Market Association at the 2nd APPMC 2018.
Congratulations to SBMA on completing 30 years. JPMorgan, as one of the founding members, has been part of its extraordinary journey filled with challenges and triumphs, and is proud of how far SBMA has come. Whether putting Singapore on the map as a regional Precious Metals trading hub or organizing industry-leading Precious Metals conferences, SBMA has achieved many milestones. We wish it continued success in the future as it works to further advance the activities and interests of the precious metals industry in the region.
— Raman Walia, Executive Director, Head of Commodities Sales – APAC, JP Morgan Chase Bank N.A.
We are delighted at SBMA’s remarkable 30-year journey. It is the dedication and passion of each member of the team that has helped propel the organisation to embrace challenges and turn them into opportunities, forge lasting relationships with various partners and stakeholders, and galvanise the precious metal community. With unwavering belief in the shared vision and mission, here are our wishes for growth, success, and making a difference to the region. Congratulations!
— David Tait, CEO, World Gold Council
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2019: Cake-cutting ceremony in celebration of SBMA’s 25th anniversary at the 3rd APPMC 2019.
Congratulations to SBMA on reaching its 30th anniversary! We celebrate another year of collaboration, growth and unwavering support as we strive towards elevating Singapore into a leading precious metals hub in the Asia Pacific region. SBMA’s steadfast commitment to supporting member firms in establishing a foothold in the vast precious metal ecosystem continues to be integral to the success and growth of the Singapore precious metals industry. Let’s look forward to many more years of shared accomplishments. Happy 30th Anniversary!
— Alan Liew, Head of Bullion & Commodities Trading, United Overseas Bank Limited
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2022: Roundtable discussion on China at the 5th Hybrid APPMC 2022. Panellists (L to R): Zhao Fanghua (Shanghai Gold Exchange International), Alan Liew (United Overseas Bank), Tracy Yan (Shanghai Gold Exchange International), Huang Yourong (Zijin Mining Group), and Albert Cheng (SBMA).
On behalf of Metals Focus, I would like to extend my heartfelt congratulations to the Singapore Bullion Market Association on its 30th anniversary. It has been a privilege for Metals Focus to work with the Association, joining its ranks in 2019 and becoming a member of its Management Committee last year. Just as it has for so many other companies in the precious metals industry, the SBMA has played a key role in the development of Metals Focus’ presence and business in East Asia. The SBMA provides an important platform and network for ASEAN and wider APAC precious metals markets to link up with the rest of the world, through Singapore’s ecosystem. Its flagship event, the Asia Pacific Precious Metals Conference, has become a staple in the precious metals calendar, offering a much-needed opportunity to learn about the latest trends in our industry as well as connect with clients, partners and friends every June. Metals Focus would like to thank the SBMA for its invaluable contribution to the industry and wish it continued successes in its fourth decade and beyond. We look forward to being part of its journey, as it continues to shape Singapore’s, APAC’s and ultimately the global precious metals market landscape.
— Nikos Kavalis, Managing Director, Metals Focus Singapore Pte Ltd
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2022: SBMA members visited the DOJI Tower, headquarters of the DOJI Gold & Gems Group, which is also the largest diamond-shaped building in Hanoi, following the Vietnam Gold Jewellery Market Forum.
Happy 30th anniversary SBMA! On this milestone anniversary, I would like to extend my deepest appreciation for your hard work and dedication to the Singapore Bullion Industry. Today, we celebrate the vision, resilience, and unwavering commitment of the SBMA team that have made this possible. Your commitment and passion have been instrumental in building connectivity across the Singapore and regional bullion ecosystem.
As we reflect on the challenges overcome and the lessons learned, we can embrace the incredible journey that we have been through together with the SBMA the last 10 years that MTS Gold has been in Singapore. MTS Gold has worked hand in hand with the SBMA as key player in ASEAN gold ecosystem, and we are committed to continuing our innovation as an integral member of the SBMA.
There is much gratitude for the journey together, excitement for the future, and pride for all the SBMA has accomplished. May this anniversary be a reminder of how far we’ve come and how much more we can achieve. As we toast to another year of accomplishments, let’s remember that the best is yet to come. Wishing you continued success as we celebrate this milestone hand in hand.
— Golf Hirunyasiri, CEO, MTS Gold Global Trading Pte Ltd
As the CEO of YLG Bullion Singapore, I am delighted to extend heartfelt congratulations to SBMA on its 30th anniversary. Since our membership in 2015, we have witnessed the remarkable growth of the Singapore bullion market, thanks in large part to SBMA’s invaluable contributions. Under the exemplary leadership of Albert, the CEO of SBMA, Singapore has emerged as a prominent gold hub in Asia. His steadfast guidance has been instrumental in steering the industry towards success.
SBMA’s commitment to excellence and innovation has not only elevated the stature of the Singapore bullion market but has also paved the way for future growth and prosperity. As we celebrate this milestone, we express our deepest appreciation to SBMA for its dedication to advancing the bullion industry and fostering a collaborative and thriving ecosystem. Here’s to thirty years of achievement and many more to come. Congratulations on this momentous occasion.
— Pawan Nawawattanasub, CEO, YLG Bullion Singapore Pte Ltd
SBMA - CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATION
2023: A group photo of the SBMA Management Committee members at the 6th APPMC 2023.
Congratulations to the SBMA on turning 30 years old! It’s somewhat sobering for me to write this, but that almost matches the number of years I have been involved in the precious metals market. It has been wonderful to witness the SBMA evolve during that time. Much of that time was from a distance, as my career has taken me to New York and London as well for 16 of those years, but this last trimester of my career has been here in Asia, and I’m proud to be associated with the SBMA.
I wish I could say that I was a strong advocate of the SBMA from the beginning, but the truth is, I was a little hesitant of its role and efficacy, but time and time again it has proven its value. I need to congratulate Albert Cheng in particular for having the vision of Asia’s growing footprint in the global market, and Singapore’s potential to be a significant hub. When I moved back to this region in 2012, it also coincided with an explosive growth in the region that remains to this day. The SBMA has been instrumental in bringing together the main stakeholders from government, banks, dealers, security carriers, and refiners where the whole is truly greater than the sum of its parts.
We have all accumulated memorable moments during our careers I’m sure, but there is something about the gold market that seems to make it the most interesting of markets and communities. I did share one of many memorable moments involving Singapore’s development with KL Yap, our current Chairman. He tells it better than me, so perhaps grab him during the conference and ask!
The centre of gravity for the gold market has been shifting toward Asia for many years now and I can’t see that reversing anytime soon. I think it was Oscar Wilde who said a cynic knows the price of everything, but the value of nothing. I see the value of the SBMA’s role every time I attend a Management Committee meeting, as I survey the room populated with such wide and vast experience.
I’ll end this note as I began it – Congratulations again on turning 30, SBMA. I’m so proud to be associated with it and its members.
— John Levin, Global Metals, TD Securities
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]]> US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES https://sbma.org.sg/media-centre/publication/crucible/crucible-30/us-election-dynamics-a-positive-for-gold-with-mixed-impact-on-key-commodities/ Mon, 06 May 2024 07:59:07 +0000 https://sbma.org.sg/?p=27338 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES

By Bart Melek, Managing Director & Global Head of Commodity Strategy, TD Securities

  • The results of the upcoming US presidential election are set to be very consequential to energy and climate, international relations, industrial and fiscal policies. Even if President Joe Biden remains in power and the Senate and House are controlled by the same parties as they are now, political debate in the coming months, along with policy drift in response to opinion polls, are sure to occur. This already is shaping, and will no doubt continue to shape, the market outlook for gold, silver, PGMs, copper and crude oil.
  • A regime change in the White House and Senate has the potential to reduce spending for environmental initiatives financed by the allocations under the Inflation Reduction Act (IRA). This would be a modest negative for copper and silver, but a positive for Platinum Group Metals. Crude oil and fossil fuels should also benefit. Of course, the degree to which these markets are impacted will depend on the exact policy adjustments pertaining to key sectors such as transportation, power transmission and generation, after the election. That, in turn, will be a function of the final political realities in Congress and the White House.
  • A Republican administration is likely to push lower taxes, with spending largely unchanged. The resulting higher deficit projections, from the already very high numbers, should help gold, as it suggests higher inflation, lower real rates and continued central bank buying. A likely even more adversarial stance toward China and Iran by a Republican administration would also contribute to gold’s good fortune and should see oil well supported.
SBMA US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES
Source: TD Securities, Note: +,- expected price impact from policy
The 2024 presidential election is expected to be very impactful on the lives of Americans, America’s allies, and adversaries throughout the world. The next president will set policies on numerous fronts of public life, ranging from social, fiscal, trade, environmental and military/geopolitical policies. In particular, environmental, fiscal and foreign policy pre-election and post-election dynamics are the most consequential on gold, silver, PGMs, copper and crude oil.
The Inflation Reduction Act, which was enacted in 2022 and contains several measures that aim to promote decarbonisation of the US economy, may change should the occupant of the White House change and the balance of power tilt toward the Republican party in Congress.

LESS ROBUST ENVIRONMENTAL POLICY A MODEST NEGATIVE FOR SILVER AND COPPER, BUT GOOD FOR PGMS

The Inflation Reduction Act has the potential to massively expand America’s expenditures on climate initiatives. It includes investments in deploying clean energy, expanding the electricity grid, developing domestic clean technology manufacturing, creating incentives to uptake electric vehicles, reducing methane emissions, increasing the efficiency of buildings, and improving the climate resilience of communities. In aggregate, around US$370 billion will be allocated for measures dedicated to improving energy security and accelerating clean energy transitions.
If there are reductions to these commitments, copper and silver are likely to be impacted negatively. A reduction in electric vehicle (EV) subsidies would mean less demand for battery-powered vehicles, and thus less copper and silver demand growth. A standard ICE vehicle uses some 22 kg of copper compared to 53 kg used by an EV. The same traditional vehicle uses only a fraction of the upwards of 2 oz of silver used by a full electric vehicle. Less investment in electricity transmission, charging, and power generation infrastructure would also negatively impact copper.
Currently US CAFE standard is planned to be 49 mpg by 2026 but is slated to rise all the way to 58 mpg by 2032. As such, the Environmental Protection Agency (EPA) estimates that the new emissions rule for light-duty and medium-duty vehicles would require up to two-thirds of new cars and trucks sold in the US to be EVs in eight years.
Both a reduction to mandated US CAFE fuel standards and less subsidies for EVs would negatively impact silver and copper but would help PGMs. As we are already seeing, due to the lack of charging infrastructure, high costs, and distance anxiety, the US public has partially turned away from pure EVs. Albeit less aggressively than under the Biden administration, it is likely that there would still be a more organic push to higher fuel efficiency under a new administration. This suggests that hybrid vehicles, which use petroleum products, batteries, and electric motors, would fill that gap.
So, the negative impact on copper and silver may be quite limited from US policy changes, but the relative boost to platinum and palladium could be substantial. Hybrids use as much PGMs as do ICE vehicles. From a global perspective, China and Europe will keep the current trend mostly intact, which given the projected deficits in copper and silver means very firm prices indeed.

Less Ambitious Green Spending to Moderate Copper Demand in US

Copper Loadings Per Vehicle
ICE Vehicle 25kg
Hybrid 50kg
BEV 75kg
Copper Loadings Per Electricity Source
Conventional Grid 1,500 kg/MW
Nuclear 2,000 kg/MW
Onshore Wind 3,500 kg/MW
Offshore Wind 9,550-12,000 kg/MW

Source: Precious Metals Commodity Management LLC, IEA, TD Securities

Silver to Benefit from Spending on Next-Gen Solar Technology

SBMA US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES
Source: TD Securities, World Silver Survey

SKY-HIGH DEFICITS AND MORE ADVERSARIAL US-CHINA RELATIONS A MANNA FOR GOLD

The US debt in March 2024 was around $34.59 trillion, roughly 100 percent of GDP and, according to the CBO, will steadily increase over the next 30 years. The fear is that it will be partially monetised, as there is little appetite for higher taxes.
The total US deficit is projected to grow from an expected $1.6 trillion (5.6 percent of GDP) in fiscal year 2024 to $1.8 trillion in 2025. The US deficit would likely grow to an even more enormous size if Mr. Trump were to become President again. In sharp contrast to Mr. Biden, the GOP may try to reduce taxes. Meanwhile, there is no substantive plan to reduce spending.
Persistent massive deficit spending under the Biden administration and a Fed that was very slow to hike rates in response to the recent inflation spike have already helped to drive central banks and many investors into gold, as purchasing power protection or a hedge against long-term US dollar depreciation.
A rise in geopolitical tensions globally, as well as continued stresses between the US and China in the South China Sea and over Taiwan have also served to encourage buying, as some central banks diversified away from USD and other fiat currencies.
This may have well been a reaction to sanctions against Russia, which prevented Moscow from accessing around half of their FX reserve holdings. Meanwhile we believe the Putin administration has been using physical gold to facilitate transactions with Russia-friendly countries. This was possible because physical gold can be moved, and it is nobody’s liability with intrinsic value.
Indeed, 2022 saw central banks buy a record 1,136 tonnes, and a near record amount in 2023. This buying spree coincides with a trend among central banks globally to diversify their holdings to reduce their reliance on the US dollar. The last two years recorded the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971.
The People’s Bank of China (PBoC) has been on the forefront of this activity, as it snapped up the yellow metal for 17 straight months, with its holdings of the precious metal rising 16 percent over this period. In 2023, China’s central bank bought 225 tonnes of gold. In March, China’s gold reserve rose by 5 tonnes, taking the country’s total holding to 2,262 tonnes or 4.4 percent of its FX reserves.

Very Strong Central Bank Buying Activity to Continue Regardless — But More Under GOP

SBMA - US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES
Source: TD Securities, Metals Focus, Refinitiv GFMS, World Gold Council

Plenty of Room For China to Grow Reserves

TD-Plenty of Room For China to Grow Reserves
Source: World Gold Council, TDS Commodity Strategy

GOLD A GOOD SANCTION-PROOF PRIVATE AND CENTRAL BANK PORTFOLIO DIVERSIFIER

US-China tensions are set to remain elevated during the US presidential election as rhetoric surrounding very large deficits, the South China Sea, and trade policies all come to the forefront. As such, the PBoC and other central banks should continue to show interest in gold. While a GOP victory implies higher deficits and more China tensions on all fronts, a Democrat victory would still preserve the US adversarial relationship with China and see astronomically high deficits.
Diversifying FX reserves due to US dollar purchasing power concerns and rising geopolitical tensions should continue to be strong demand drivers in 2024 and beyond. The yellow metal protects against purchasing power erosion and is a good inflation hedge due to the fact it is a real asset, which requires inflation-sensitive real inputs such as labour, capital goods and energy to produce. At the same time, since it is a highly liquid, scarce asset with intrinsic value, and it is no one’s liability, it is a great way to diversify an investment portfolio and central bank FX reserves, making it sanction proof.

Marginal Cost Rises Along with Higher factor Costs— Making Gold a Good Inflation Hedge

SBMA US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES
Source: GFMS, Metals Focus, TD Securities

Growing Debt Increases Appetite For Hedge

SBMA US ELECTION DYNAMICS A POSITIVE FOR GOLD, WITH MIXED IMPACT ON KEY COMMODITIES
Source: Federal Reserve Bank of St. Louis, Bloomberg, TDS Commodity Strategy
BART MELEK

BART MELEK has over 20 years’ experience analysing precious metals, base metals, energy, financial markets, as well as key economies. He has worked closely with commodity, equity and FX trading desks around the world, and has several forecasting distinctions and top global rankings. Bart contributes to the TD Securities strategic view on commodity, various other markets and macroeconomics. Bart is also a sought-after media commentator. Before joining TD, he held senior roles in equities, commodities and risk.

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]]> LBMA & SBMA: A GOLDEN PARTNERSHIP https://sbma.org.sg/media-centre/publication/crucible/crucible-30/lbma-sbma-a-golden-partnership/ Fri, 03 May 2024 10:32:58 +0000 https://sbma.org.sg/?p=27314 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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LBMA & SBMA: A GOLDEN PARTNERSHIP

By Ruth Crowell, Chief Executive, LBMA

Crucible30-SBMA-LBMA-Article

Congratulations to the Singapore Bullion Market Association (SBMA) and its CEO Albert Cheng on a transformative 30-year tenure in the region, playing a pivotal role in the development of Singapore as an ASEAN precious metals hub and a global centre of connectivity for precious metals.

Over this period, LBMA has worked to support the SBMA, and strengthened relationships not just between bullion centres in London and Singapore, but with exchanges and trade associations in the region, sharing initiatives, knowledge, and best practices. I can fondly recall innumerable trips to meet Albert and other SBMA board members in Singapore. Particularly memorable was working together for our joint Bullion Market Forum in 2014 as well as holding the LBMA Conference in Singapore in 2016. Through these events and regular in person and virtual meetings we have connected with stakeholders across the region, including SBMA members, bullion banks, exchanges, refineries, trading firms and logistics companies, regularly throughout my own tenure as LBMA CEO.

I hope that LBMA support has contributed somewhat to SBMA’s vision for Singapore as a leading precious metals hub in the Asia Pacific region and as a global centre of  connectivity for precious metals. One of the many outcomes of the strong relationship I believe exists between LBMA and SBMA has undoubtedly been the  reinforcement of transparency, trust, and standards across the global supply chain.

At LBMA, we have seen significant and steady growth in the Asia region. The number of Good Delivery Refineries has increased even in the last few years, from 14 gold only refineries in 2020 to 16 in 2024, and from 21 silver-only refineries to 24 in the same time span. Meanwhile the number of refineries producing both metals in the region has increased from 24 in 2020 to 25 in 2024. These figures reflect a surge of activity, demand, and trust in the region. We have also seen a rise in the number of GDL applications from
Asia, particularly in the silver space.

This shift reflects the growing market for precious metals demand in Asia. Globally, LBMA has members from 24 countries, spanning five continents and all major bullion centres.

An upturn in LBMA membership in Asia is also apparent, with LBMA servicing 34 members from Asia in 2024 – comprising 13 full members and 22 affiliate members – up from a total of 28 members in 2013. This shift reflects the growing market for precious metals demand in Asia. Globally, LBMA has members from 24 countries, spanning five continents and all major bullion centres.

gold bullions over black

LBMA KEY STRATEGIC INITIATIVES FOR 2024 AND BEYOND

Our Sustainability and  Responsible Sourcing Strategy, launched in 2024, is ambitious.  We know we cannot do it alone – we need action from the entire global value chain, from rock to ring. Our five key areas of focus are:

  • Improvement of LBMA oversight of audits
  • Increasing the share of responsible ASM gold in the market
  • Trust and integrity across the full value chain
  • LBMA’s own sustainability
  • The wider sustainability agenda

Look out for our latest Sustainability and Responsible Sourcing Report later this year, which will provide an update on how we are delivering against this strategy, as well as other updates on the Responsible Sourcing Programme as a whole. Work is also underway on laying the foundations for the next Responsible Gold Guidance – Version 10 – that will be launched next year.

Another current key deliverable for LBMA is working with the World Gold Council on the Gold Bar Integrity initiative, which is set to digitise the Responsible Gold Guidance. The initiative aims to build greater trust in gold purity and the provenance of gold bars, bolstering transparency across the entire gold supply chain, removing risks associated with money laundering, threat financing, and illicit trade.

Meanwhile, LBMA – strengthened by its worldwide relationships – continues to ensure the quality of precious metals in the London market and beyond through its Good Delivery programme, Responsible Business Conduct thanks to the Global Precious Metals Code, and ethical sourcing of metals via its Responsible Sourcing Programme.

Crucible30 SBMA LBMA Article 03
LBMA/LPPM Precious Metals Conference 2016 – Session 3: LBMA Developments,
moderated by Ruth Crowell, LBMA Chief Executive.
Crucible30 SBMA LBMA Article 04
LBMA/LPPM Precious Metals Conference 2016 – Session 4: The Bullion Market in China,
moderated by Albert Cheng, CEO, Singapore Bullion Market Association.

LBMA’s Return to China

We are excited to return to China for the first time since COVID-19 to speak at the China Gold Congress and Expo, in the Gold Market Development Summit plenary session. The China Gold Congress takes place July 26-28, 2024 in Shanghai, and is hosted by the China Gold Association and World Gold Council.

Continue the Conversation

Register now for the Global Precious Metals Conference, which will take place from Sunday, 13 October till Tuesday, 15 October 2024 at The Diplomat in Miami, Florida, USA. Find out more and book your ticket at https://www.lbma.org.uk/events/lbma-lppm-global-precious-metals-conference-2024. We hope to see you there!

Ruth Crowell

Ruth Crowell is the Chief Executive of LBMA, responsible for its strategic development, in partnership with the Chairman and the Board. She maintains accountability to, and the quality of, the Association’s membership and Good Delivery refiners as well as representing LBMA’s interests in relation to regulators, investors, media and international precious metals markets. Prior to joining LBMA, she worked in bank finance and US corporate law and also acted as a monitor at the UN Commission on Human Rights in Geneva.

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]]> BUILDING ASIAN BULLION TIGERS https://sbma.org.sg/media-centre/publication/crucible/crucible-30/building-asian-bullion-tigers/ Fri, 03 May 2024 09:26:01 +0000 https://sbma.org.sg/?p=27280 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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BUILDING ASIAN BULLION TIGERS

By FINMET PTE LTD

The bullion market in Asia has gone through a radical transformation in the post-Covid era, resulting in increased opportunities for regional trading companies and local banks to seize market share left by exiting international banks.
In our view, there are major five challenges for Asia’s market players that need to be addressed through innovative and customised solutions:
  1. Minimal direct physical metal trade between producing and consuming countries in Asia.
  2. Reduced access to market liquidity.
  3. Limited role of regional commercial banks.
  4. Lack of financing options for metal inventory
  5. Hurdles for Asian champions to become global winners.
At FinMet, we are taking a close look at each of these issues, the reasons behind them and building possible pathways to solutions.
One of the most vexing aspects market observers note is that the vast share of gold and silver that is produced and exported from countries like Australia, Indonesia, Korea, Philippines and China, is sold to international bullion banks, which in turn deliver the metal to consuming Asian countries like China, Thailand, India, Vietnam, Cambodia, and Malaysia. The value of direct intra-Asia trade accounts for less than 15% of the market. Accordingly, we are working on building direct relationships between large producers and consumers by providing more market intelligence and understanding to both sides.
The reduced activity in Asia of some major international bullion banks has limited the ability of mid-tier players here to access liquidity. Opening a trading account with an established liquidity provider often takes 4-6 months and involves furnishing numerous disclosure documents. The consequent reduced market access adversely affects profit margins and increases market risk for these companies. We are introducing new trading platforms to the market and educating players on how to use these new tools.
Commercial banks in Asia tend to cater specifically to their domestic bullion market’s needs and have not really expanded their services beyond their home country into other countries in the region. The local banks in China (ICBC, BOC, CCB), India (ICICI, HDFC), Singapore (OCBC, DBS) and the UAE (Emirates NBD, NBF, RAK) have developed considerable expertise in physical trading, hedging and metal financing in their home markets, but have been shy to expand into other markets regionally. The reticence stems from a lack of risk appetite and in-depth knowledge about other bullion markets in the region. FinMet is working with some of these banks to help them develop an understanding of new markets and extend their product footprint for physical metal trading and financing.
Metal inventory financing has emerged as one of the critical needs of market players in Asia. We have structured new financing solutions that suit the credit policies of regional financial institutions by using the existing market infrastructure to enhance fungibility and transparency of the underlying metal being financed. These new products help mid-tier jewellers, industrials and traders to access a new source of liquidity to reduce their funding costs and improve their bottom-line.
Finally, one of the enduring themes across the bullion markets in Asia is the absence of regional leaders on the global stage. We identify leading, strong players in local markets who have been unable or unwilling to expand their activities globally in a meaningful way. Our goal is to educate these local leaders about opportunities in other markets and assist them to grow their presence on the global stage. We achieve this through education, strategic partnerships and opportunistic transactions.
As regional markets rebound in the wake of the pandemic, Asian corporates and financial institutions have a golden opportunity to overcome past challenges and solidify their position in the bullion markets. This move could boost their profitability, while raising their international profile.
At FinMet, we leverage our unique position – our feet firmly planted in the pivotal hubs of the Far East, Dubai, and India – to bridge these markets. Our in-depth product knowledge, acute market insight, and strategic global network are tailored to empower our clients to capitalise on these opportunities and achieve their ambitious goals.
SBMA Building Asian Bullion Tigers
FinMet’s management team (from left: Sunil Kashyap, Director; Pramod Mohan, Managing Director; Johnson Lewis, Managing Director).
SBMA Building Asian Bullion Tigers

FINMET PTE LTD

is a pioneering force in the precious metals industry, catalyzing change with a global perspective and deep industry experience. Their innovative blend of technology and precious metals revolutionizes trading, financing, logistics, and risk management. Since 2021, they have aimed to lead the market by delivering flexible, affordable solutions tailored to stakeholders’ needs. With a seasoned management team boasting over 60 years of combined experience, they are committed to being a trusted ally, providing bespoke solutions th
SBMA Building Asian Bullion Tigers
PRAMOD MOHAN is Managing Director at FinMet Pte Ltd. He has over 25 years of international experience in commodities and financial markets, spanning across India, Australia, Far East, Middle East, and North America and works closely with various regulators and stakeholders in the UAE and India.
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]]> HISTORY OF GOLD IN AUSTRALIA &FUTURE TRENDS https://sbma.org.sg/media-centre/publication/crucible/crucible-30/history-of-gold-in-australia-future-trends-crucible-31/ Tue, 30 Apr 2024 07:41:00 +0000 https://sbma.org.sg/?p=27165 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS

By Nicholas Frappell, Global Head Institutional Markets, ABC Refinery

Australia’s relationship with gold began in the mid-19th century, marked by a monumental gold rush centred in the Victorian gold fields. This event fundamentally altered Australian society – an impact later historians deemed revolutionary.
The magnitude of this gold rush was only surpassed by California’s gold rush, which occurred roughly three years earlier. Economists, including British economist William Stanley Jevons, were skeptical about the value of gold digging, viewing it as “almost a dead loss of labour as regards the world in general – a wrong against the human race”.
Yet, the residents of Melbourne, both then and over 170 years later, as well as the nation of Australia, would strongly contest this view. Today, the gold industry thrives, having invested A$1.6 billion (S$1.42 billion) in production in 2021 and generating A$25.80 billion in revenue in 2022.
Karl Marx worried that these new discoveries would bolster markets, provide new homes, and open investment opportunities, potentially postponing the inevitable crisis of capitalism. His bleak outlook proved to be one of the most prescient among his peers, for all the right reasons. Despite the skepticism from some European intellectuals, there are numerous tales of entire ship crews, from the captain to the deckhands, deserting their posts to venture inland in hopes of striking it rich.
Australia is estimated to have produced approximately 95 tonnes of gold in 1856, and around 1,898 tonnes over the forty-five years spanning from 1851 to 1896.

SOCIAL CHANGE

The gold rush not only brought prosperity but also ignited a rebellion among miners against British rule, an event commemorated by ABC Bullion’s “Eureka” minted coins and tablets. This period also catalysed significant social changes that led to enhanced parliamentary democracy in Australia.
Additionally, this era marked the first significant collaboration between Australia and China in the gold sector, with over 30,000 Chinese miners participating in the rush. Some of their distinctive mineshafts are still visible in the countryside today, notable for being cylindrical in shape, so that evil spirits would not be able to find a convenient corner to lurk in and then leap out to snare an unwary miner.
Gold production decreased after the fervour of the 19thcentury gold rushes subsided.
SBMA HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS
Gold miners at work in Victoria (Image: The National Museum of Australia)
SBMA HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS
Num Pon Soon Society Building, Melbourne

THE TWENTIETH-CENTURY BOOM

Heading into the late 20th century, Australia witnessed a significant resurgence in gold production, starting in the late 1980s.

Australian Gold Production 1975-2022

SBMA HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS
Source: Geoscience Australia, World Gold Council
The boom in gold production that began in the late 1980s continues to this day in Australia. This surge was accompanied by innovations in banking and risk management that allowed producers to secure capital through associated hedging. The 1990s are often seen as a golden era for banks providing facilities to miners, enabling them to sell their future production forward. This was encouraged by high nominal Australian yields, creating a favourable environment for selling forward production into a contango.
This period of innovation sometimes led to unforeseen financial exposures. As spot gold prices rose towards the end of the 1990s, some producers were harshly exposed, leading to a more cautious approach to hedging among producers seen today. Additionally, the belief that the bear market, which began in 1980, ended with the start of the new century, influenced the industry’s strategies.
Australia now ranks as the third-largest gold producer globally, producing well over 300 tonnes annually, as per the latest World Gold Council data. Australian gold producers benefit from robust environmental protections, strong workplace and investor safeguards, and competitive all-in sustaining costs (AISC). Geological surveys indicate substantial undeveloped gold reserves, suggesting a sustained future for the industry.
In an era where consumers are increasingly conscious of the impacts of extractive industries, Australia stands out for adhering to best practices in mining and processing ores. This, combined with positive domestic public sentiment towards gold mining and its benefits to local communities, positions Australia favourably compared to its global peers. The industry’s public support is crucial, as opposition can hinder the granting of new permits and the expansion of existing or development of new projects.

RETAIL INVESTMENT

Gold has become an increasingly popular investment in Australia, driven by several factors enhancing its appeal. The trading, vaulting, and access to clear and reliable information about gold as an asset have significantly benefited the retail gold market. ABC Bullion capitalised on this trend by opening its flagship store in the heart of Sydney’s CBD, enhancing the customer experience in purchasing precious metals.
SBMA HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS
ABC Bullion Global Flagship, Martin Place Sydney
Additionally, gold and silver investments are popular choices for Self-Managed Super Funds (SMSFs). Australia’s pension savings, known as superannuation, represent a substantial and growing sector. The SMSF sector alone is projected to expand by A$1.5 trillion over the next two decades from its current size of approximately A$900 billion, reflecting a growing trend toward including precious metals in retirement portfolios. This growth underscores the increasing integration of gold into diverse investment strategies.

Projected Growth Self-Managed Funds 2023-40 in A$ Billions

SBMA HISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDS
Source: ASFA, ABC Refinery
As awareness grows of gold’s unique attributes – a liquid asset that holds no liability and is weakly correlated with a variety of other assets – the interest in incorporating gold into long-term savings and investment plans is expected to increase. This trend highlights gold’s role as a stable and attractive option for diversifying and safeguarding portfolios against economic fluctuations.

FUTURE TRENDS

Gold is poised to benefit from increasing acceptance and awareness across all classes of investors, from retail buyers to sophisticated family office investors. A key trend driving interest in gold is the focus on provenance. This appeals to buyers who are conscious of the origins of their gold holdings and wish to ensure their investments are sourced from environmentally and ethically impeccable sources. As such, exchange-traded funds (ETFs) are increasingly requiring verifiable provenance of their gold holdings.
ABC Refinery is responding to this trend by developing gold provenance technology, aimed at providing customers with assurance that the gold they purchase has been responsibly and ethically mined and refined.
Regionally, there’s a trend towards regularising domestic sales of gold bars and jewellery, ensuring retail buyers can trust the sourcing and purity of their purchases. This movement is evident in various Asian countries and is expected to lead to more efficient and trustworthy markets. Singapore is emerging as a key hub in this respect within the ASEAN community, not only in terms of volume and sophistication but also through its thought leadership in the industry. This regional focus is likely to enhance the overall market for gold by ensuring higher standards of transparency and ethical practices.
Gold has a deeply rooted and esteemed history in Asia, arguably one of the longest and most celebrated worldwide. Advancements in the production, processing, and supply of gold in Australia are set to strengthen the ties between Australia and the Asian markets, promising mutual benefits. This closer collaboration is likely to enhance the exchange of technology, expertise, and economic gains, contributing positively to both regions’ gold industries.
NICHOLAS FRAPPELL
NICHOLAS FRAPPELL is the Global Head of Institutional Markets at ABC Refinery. He has extensive experience in precious metals trading, having worked in London, Tokyo, Singapore, Hong Kong, and Sydney. Nick holds a Masters in Finance from the University of London and is the Chair of the LBMA membership sub-committee. He also cohosts the ABC Refinery “Pod of Gold” podcast and will speak at the 7th APPMC 2024 Conference on the Precious Metals Price Outlook Panel.
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]]> THE WORLD GOLD COUNCIL’S VISION FOR THE GOLD MARKET https://sbma.org.sg/media-centre/publication/crucible/crucible-30/the-world-gold-councils-vision-for-the-gold-market/ Tue, 30 Apr 2024 06:30:39 +0000 https://sbma.org.sg/?p=27112 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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THE WORLD GOLD COUNCIL’S VISION FOR THE GOLD MARKET

By Chen Qinghan, Central Banks and Public Policy Lead, World Gold Council

THE WORLD GOLD COUNCIL’S VISION FOR THE GOLD MARKET​

As the leading market development organisation for the gold industry, the World Gold Council is committed to shaping the conversation around gold and improving understanding, access and trust for all stakeholders of the gold market.

The history of gold goes back many millennia, and given its historical connection with money, its role as a store of value has been established since antiquity. Notwithstanding the long history of gold, even today the gold industry is continually presented with new challenges in a rapidly evolving world.
Globally, digital transformation and heightened consumer and investor focus on Environmental, Social and Governance (ESG) issues have set new expectations and standards for how industries and businesses should operate. These transformations have impacted the gold industry as well. We at the World Gold Council welcome these changes, as they provide an opportunity and impetus for us to work towards a better future for gold.
In meeting these new challenges, we have a broad vision for the gold market, which is to improve integrity, accessibility and fungibility. In working towards this vision, we have various workstreams covering various aspects of the gold market. Below are some of our key focus areas and initiatives.

ARTISANAL AND SMALL-SCALE GOLD MINING (ASGM)

The World Gold Council and its member companies support the responsible mining and trading of gold from all legitimate sources, including artisanal and small-scale gold mining (ASGM).
Compared to large-scale mining operations, the great majority of ASGM takes place outside legal frameworks which makes it difficult to ensure best practices and standards. As a result of weak regulatory oversight, ASGM is sometimes associated with human and labour rights violations and the activities of organised criminal groups in some regions.
The World Gold Council recognises that government leadership is critical in formalising ASGM and in improving ASGM’s adherence to best practices in responsible mining and trading. We are currently working with a group of central banks, which actively purchase gold from domestic ASGM production, towards formalising the ASGM sector. Given the scale of their purchases, these central banks wield market power that can be used to foster lasting change through implementation of international standards and best practices.
Over two initial meetings in Paris and Vienna, the central banks involved agreed that the group would be a “trusted circle” where they can discuss best practices and learn from one another’s experiences. The World Gold Council is working with the group of central banks to finalise a set of common principles for central banks that purchase from domestic ASGM sources. The principles would require signatories to adhere to ESG best practices.
For our work with central banks in the ASGM field, the World Gold Council was awarded the Partner Initiative Award at the Central Banking Awards 2024.
As we continue to engage with and provide support for central banks, our vision is for central banks that purchase from domestic ASGM sources to exercise their market influence to foster a set of internationally recognised standards and best practices in ASGM.

GOLD BAR INTEGRITY PROGRAMME

The key to ensuring responsible gold sourcing and product integrity is the capability to ensure supply chain integrity. Recent developments in blockchain technology have put this within reach. The World Gold Council has partnered with the LBMA to develop and implement the Gold Bar Integrity (GBI) Programme, an international system of gold bar integrity.
Using distributed ledger (blockchain) technology, the programme aims to digitally monitor gold moving through the global supply chain by confirming provenance and providing transparency over the chain of custody. The goal is to expand the trusted, closed-loop ecosystem, which currently exists for the 400 oz gold bar market to also incorporate smaller bars, including kilobars. Over time, this will give consumers, investors and market participants increased confidence that their gold is authentic and has been responsibly produced and sourced.
For its pilot programme, the World Gold Council and LBMA brought together representatives from the global gold supply chain. The World Gold Council also made a strategic investment in aXedras, which will be the official service provider for the newly established GBI Database when it is launched later this year. The GBI Database aims to foster enhanced clarity, security, and stability in information-sharing across the market.
We envision that the GBI will provide consumers, investors, and market participants with greater confidence in gold as an asset class and advance standards for the common good of the global industry (see the entire value chain of the GBI below).
Entire Global Value Chain
The GBI’s Entire Global Value Chain

RETAIL GOLD INVESTMENT PRINCIPLES

For thousands of years, gold has been prized by cultures around the world as a means of accumulating and preserving wealth. Today, there are many ways to invest in gold. Besides bars, coins and jewellery, there are also products such as exchange-traded funds (ETFs).

Today, there are many ways to invest in gold. Besides bars, coins and jewellery, there are also products such as exchange-traded funds (ETFs).

While products such as ETFs are subject to financial market regulation, many other gold investment products are not. This makes it difficult for retail gold investors, particularly first-time gold investors, to feel confident about investing in gold. A consumer survey by the World Gold Council in 2019, covering 18,000 participants from the US, China, India, Russia, Germany, and Canada, highlights this issue. It shows that almost half of prospective retail gold investors cite lack of trust as a barrier to investing in gold.
To tackle this issue, in 2020 the World Gold Council launched the Retail Gold Investment Principles (RGIPs). Developed in consultation with 52 industry stakeholders from 16 countries, the RGIPs provide best practice principles for providers of all kinds of retail gold investment products.
Widespread adoption of these principles will foster the highest levels of fairness, transparency and integrity across the market so retail gold investors can feel confident when investing in gold. We believe that the retail gold industry will only fulfil its potential if it is trusted by investors. The RGIPs are now available in key markets like India, China, Singapore, Germany, and North America.
As we continue to collaborate with stakeholders in other markets to develop the RGIPs for their markets, it is envisaged that the adoption of the RGIPs will lead to greater trust, benefiting customers and product providers alike, and creating value and driving demand across the industry.
SBMA THE WORLD GOLD COUNCIL’S VISION FOR THE GOLD MARKET
Various forms of Retail Gold

Technology and the future of gold

Gold has unique properties that make it critical in the technology sector. For example, gold is found in almost all high-end electronic devices, such as tablets and smartphones. With increasing electrification and consumer demand for electronic devices, gold’s unique properties will see it benefit from these macro trends.
But gold also has uses in lesser-known domains. Medical diagnostics is one of those fields. Gold in its bulk form is inert; it is unreactive from a chemical perspective. However, in increasingly small particles, this changes. This makes gold useful in nanotechnological applications such as lateral flow assays (LFAs). Billions of tests used around the world every year rely on gold nanoparticles, such as malaria, HIV-AIDs and COVID testing.
If you have used a COVID test before, you have been looking directly at gold probably without realising it. The purple line you were peering at were made up of millions of tiny gold nanoparticles. These types of tests are a crucial medical tool, offering quick, accurate and cost-effective diagnostics, and gold is a critical component.
The World Gold Council plays an active role in exploring the application of gold in the medical sphere. One example is our support for research at the University of Toronto, focused on developing new ways of treating brain tumours using gold nanoparticles as carriers for potentially lifesaving drugs.
Gold nanoparticles have also been shown to be a highly effective catalyst in the transformation of carbon dioxide (CO2) to carbon monoxide (CO), which has transformative potential in the field of climate change if it can be developed at scale. The World Gold Council is currently working with the National Research Council of Canada on a project exploring the possibility of taking carbon dioxide out of the atmosphere and turning that into carbon monoxide which can be turned into fuels.
The World Gold Council anticipates that the involvement of gold in technological applications will grow as technology advances, and we will continue to support projects and research that aim to harness gold’s unique and dynamic capabilities.

Building Singapore as global gold hub

China and India are the largest gold consumer markets in the world, while Southeast Asian economies have also seen significant growth. The rapid rise of Asia as the largest source of gold buying has moved the centre of gravity of the market, and this has created an opportunity for an international gold hub in Asia. The World Gold Council and the Singapore Bullion Market Association are currently working with local stakeholders to explore developing Singapore’s role in the global gold market.
This is an exciting initiative and forms an important part of the World Gold Council’s global vision for the gold market. We will no doubt meet with challenges along the way, and welcome the opportunity to work with various stakeholders towards this shared vision.
CHEN QINGHAN
CHEN QINGHAN is responsible for engagement with central banks and sovereign wealth funds on topics relating to gold reserves management. She was previously an investment portfolio manager and worked on investment strategy and portfolio risk management, and worked in the Reserves and Investment division of the Singapore Ministry of Finance, responsible for monitoring asset allocation and investment returns, risk management and performance benchmarking.
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]]> KIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA GOLD HUB https://sbma.org.sg/media-centre/publication/crucible/crucible-30/kis-gold-prices-playing-crucial-role-in-development-of-asia-gold-hub/ Tue, 30 Apr 2024 04:18:24 +0000 https://sbma.org.sg/?p=27014 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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KIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA GOLD HUB

By KALLANISH INDEX SERVICES

Situated at the crossroads of Asia, Singapore has been rapidly establishing itself as a leading gold trading hub in Asia over the past decade. With its stable political environment, transparent regulatory framework and world-class financial ecosystem, coupled with solid logistical infrastructure, Singapore possesses all the key strategic advantages that make it an ideal hub for the precious metals industry.
To further solidify Singapore’s development as Asia’s gold trading hub, only a few additional ingredients are needed. Crucially, the regional market has lacked a US dollar price discovery mechanism for gold during Asian business hours. As a result, most gold market participants have no option but to reference the LBMA’s gold benchmark price, which is issued at the end of the business day in Asia.
With the support of the Singapore Bullion Market Association (SBMA), Kallanish Index Services (KIS) is playing a crucial role in facilitating price discovery and market transparency during the trading day in Asia. KIS works closely with market participants that are directly involved in gold bullion spot market trading to compile and publish average daily premiums and discounts of specified kilobar products (see table) for both bids and offers relative to London spot price at 12:00 midday Singapore time. KIS employs a data-driven methodology that fully complies with IOSCO principles and the EU benchmark regulations.
Product: Freshly minted (virgin) kilobar and Recirculated kilobar
Quality: 0.9999 purity from credited refineries on LBMA Good Delivery List
Pricing Points: Investor/wholesale prices loco Singapore, loco Hong Kong and loco Bangkok, delivered to Brinks, Malca or Loomis vaults
Quantity: 25 kg
Timestamp: 12:00 midday Singapore time; Publication at 12:30 pm Singapore time
Currency units: US$/troy oz (to 2 decimal places)
The graph shows how KIS premiums for loco Singapore and Bangkok remained relatively comparable and flat during the first 16 weeks of 2024, ranging from US$0.87/oz to US$1.10/oz*. In contrast, premiums for loco Hong Kong during the same period exhibited greater volatility, fluctuating from US$1.38/oz to US$3.27/oz, attributable to both local demand factors and exports to China.

KIS Asia Gold Premiums and Gold Spot Price (US$/oz)

KIS GOLD PRICES PLAYING CRUCIAL
Source: KIS Gold Repor
Unusually, premiums for loco Hong Kong remained elevated after the Chinese New Year festival, a period typically associated with higih gold demand, extending into March before easing. This surge in premiums appears to be driven by increased demand from China, despite record highs in the Shanghai gold price. Factors like a weakened yuan, slumping property market, and stock market sell-offs likely prompted both retail and institutional investors towards gold as a safe haven for risk mitigation.
Meanwhile, Shanghai gold premiums over spot during this period exhibited significant volatility, ranging from a discount of US$10.39/oz to a premium of US$86.65/oz.
As with every price discovery process, the more market participants submit data, the more accurately the reference prices compiled reflect real-world transaction prices. KIS therefore invites all companies involved in buying or selling gold kilobars in Asia to apply to join its Data Provider network. Your involvement will enhance market transparency and support informed decision-making across the industry. Your price submissions will be treated with the strictest confidentiality, and in return, you will receive a complimentary subscription to the daily KIS Gold Service.
* KIS gold price premiums reflect the mid-point of the average bid and ask premiums over spot reported by market participants for each location.
SBMA Crucible-30-KIS
Kallanis Index Services

About Kallanish Index Services (KIS):

A subsidiary of Kallanish Ltd, KIS specialises in compiling price indices for commodity markets using a rigorous, data-driven methodology. KIS is independent and impartial, and works closely with market participants to compile the price indices and other essential industry data they need for business success. KIS provides subscribers daily market prices, data and insights for the gold and hydrogen sectors. KIS brings together a dynamic team of analysts based around the world, led by Steven Randall, a founder and former head of The Steel Index. Find out more at www.kallindex.com.
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]]> SBMA NEWS https://sbma.org.sg/media-centre/publication/crucible/crucible-30/sbma-news-crucible-30/ Mon, 29 Apr 2024 07:33:32 +0000 https://sbma.org.sg/?p=26994 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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SBMA News

By SBMA

Over the past quarter, the SBMA team has been preparing for 7th Asia Pacific Precious Metals Conference (APPMC)/SBMA 30th Anniversary Celebration, taking place in June. We would like to express our gratitude to our contributors and sponsors for their continued support for the APPMC, as well as their contributions to Crucible.

Here’s a quick rundown of SBMA’s recent activities:

20-22 March 2024
CEO Albert Cheng participated in the Sustainability & Responsible Sourcing Summit 2024, organised by LBMA and the World Gold Council at Hilton London Tower Bridge. The summit delved into the broader implications of responsible sourcing, moving beyond ethical sourcing to encompass the evolving sustainability landscape. He also chaired the Gold Principles Signatories Group meeting, during which several key milestones were discussed, along with the next steps.
SBMA News
From left: Albert Cheng, CEO, SBMA; Ruth Crowell, Chief Executive, LBMA; Paul Fisher, Chairman, LBMA; and Sakhila Mirza, Deputy Chief Executive & General Counsel, LBMA
26 March 2024
SBMA joyously celebrated and wholeheartedly supported the hosting of Metalor Singapore senior front office manager Cecilia Goh’s retirement party, honoring her esteemed tenure at the company. We extend our deepest gratitude to Cecilia for her invaluable contributions to the precious metals industry throughout the years and wish her a fulfilling and joy-filled retirement surrounded by her loved ones.
SBMA joyously celebrated
From left: Jake Cho, Vice President, Morgan Stanley; Damien Han, Senior Manager, ICBC Standard Bank Plc, Singapore Branch; Koh Mui Yan, Senior Sales Manager, ICBC Standard Bank Plc, Singapore Branch; Cecilia Goh, Former Senior Front Office Manager, Metalor Technologies (Singapore) Pte Ltd; Kazuya Naoki, Head of Metals, Asia, ICBC Standard Bank Plc, Singapore Branch; and Raul Hwang, Sales & Marketing Manager, ICBC Standard Bank Plc, Singapore Branch.
April-May 2024
With the rapid rise of Asia as the largest source of gold buying, there is a shift in market dynamics of the market, creating an opportunity for an international gold hub in Asia. SBMA, in collaboration with the World Gold Council, is actively engaging with local stakeholders to assess the feasibility of developing Singapore into an Asia Pacific hub.

UPCOMING EVENTS

8-12 July 2024. Shanghai, China

Shanghai Platinum Week 2024

Shanghai Platinum Week 2024, a premier event in the PGM industry, will take place from July 8–12 in Shanghai. It encompasses a series of events showcasing developments in the PGM market, including conferences, seminars, exhibitions, and networking opportunities. The highlight is the China PGMs Market Summit, where industry leaders present. This summit will be held on July 9 and 10, with inperson participation only.
Visit https://www.shanghaiplatinumweek.com for registration and event details.
13–15 October 2024. Miami, Florida, USA

LBMA/LPPM Global Precious Metals Conference 2024

The 24th LBMA/LPPM Global Precious Metals Conference will be held at The Diplomat Hotel in Miami, Florida, USA. Register now for three days of engaging speakers, insightful panel sessions, and unparalleled networking opportunities. Don’t miss this chance to be a part of an unforgettable event.

Visit https://www.lbma.org.uk/events/lbma-lppm-globalprecious-metals-conference-2024 registration and event details.

Membership

AC Precious Metal Refinery Limited was onboarded as a Foreign Associate Corporate member this quarter.
SBMA’s total corporate membership consists of 69 member companies, including 4 Category 1 members, 38 Local Associate Corporate members, 24 Foreign Associate Corporate members, and 3 Affiliate members.

Disclaimer

© 2024 Singapore Bullion Market Association

The information and articles provided in Crucible are intended to be a guide of a general nature and for information purposes only. They are not intended to be recommendations or advice of any sort and therefore must not be construed as such. While we try to ensure that the information contained in Crucible is accurate, SBMA, the article contributors and their organisations do not accept any liability for any mistakes, errors, or omissions for any loss or damage arising from any reliance thereon. SBMA, the article contributors and their organisations also disclaim all responsibility for any loss, injury, claim, liability, expense, or damage of any kind resulting from, arising out of, or in any way related to any errors in, omissions from, or reliance on any part of the information, views, or opinions expressed in this publication.

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]]> LAOS’ GOLD RUSH: A GOLDEN OPPORTUNITY FOR ECONOMIC GROWTH https://sbma.org.sg/media-centre/publication/crucible/crucible-30/laos-gold-rush-a-golden-opportunity-for-economic-growth/ Mon, 22 Apr 2024 04:07:45 +0000 https://sbma.org.sg/?p=26946 Navigate Article List CELEBRATING 30 YEARS OF EXCELLENCE: THE SINGAPORE BULLION MARKET ASSOCIATIONBy SBMAStrategic Expansion & Market Adaptation: YLG Bullion’s Journey Into Dubai’s Gold ArenaBy Pawan Nawawattanasub, CEO, YLG Bullion InternationalHISTORY OF GOLD IN AUSTRALIA & FUTURE TRENDSBy Nicholas Frappell, Global Head Institutional Markets, ABC RefineryKIS GOLD PRICES PLAYING CRUCIAL ROLE IN DEVELOPMENT OF ASIA…

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LAOS’ GOLD RUSH: A GOLDEN OPPORTUNITY FOR ECONOMIC GROWTH

By PTL Holding Company Limited

LAOS’ GOLD RUSH
Laos, a country with rich cultural heritage and abundant natural resources, has witnessed significant growth in its gold mining sector over the last couple decades. This growth not only contributes to the national economy but also positions Laos as an emerging player in the global precious metals market. The gold mining industry in Laos is reaching a significant milestone, with increasing investments, exploration, and mining activities.

BACKGROUND OF LAOS’ GOLD MARKET

Gold holds a significant place in the economic security and cultural fabric of Laotian society. As a stable store of value, it provides a reliable investment avenue amidst fluctuations in the national currency, the Laotian kip. Unlike the kip, gold offers a hedge against inflation, maintaining its value over time. Many Lao families regard gold as a form of savings and security. By keeping gold at home, they ensure a readily accessible asset that can be sold for cash when needed, offering a safety net during economic hardships.
Beyond its role as a financial asset, gold carries deep cultural significance in Laos. It holds a prominent place in traditional marriage customs, often forming a part of the bride price or dowry. This symbolic gesture represents prosperity and abundance for newlywed couples, underlining the importance of gold in familial relationships and social bonds. Additionally, gold jewellery is prominently worn during festivals and other special occasions, functioning as a tangible display of wealth, status, and cultural identity.
Gold Jewellery in Laos
Gold Jewellery in Laos

CURRENT STATE OF THE GOLD MINING INDUSTRY IN LAOS

Laos has witnessed a surge in its gold industry, driven by factors such as digitalisation and the increasing use of online platforms for buying and selling certified gold. This shift towards digital platforms not only attracts the younger generation of investors, but also facilitates access to gold for geographically dispersed Lao communities, enhancing market transparency and participation.
In 2022, Laos emerged as a significant player in the global gold market, exporting a total of $852 million worth of gold, ranking it as the 61st largest exporter globally.
Gold stood out as the second most exported product from Laos during this period. Major destinations for Laos’ gold exports included Australia, Thailand, Switzerland, Hong Kong, and India, indicating a diversified export market for Laotian gold. Moreover, between 2021 and 2022, Laos witnessed rapid growth in its gold exports to emerging markets such as Singapore, Canada, and South Korea, reflecting increasing global demand for Laotian gold.
However, despite its robust export performance, Laos also imported $332 million worth of gold in 2022, ranking it 39th globally in terms of gold imports. Thailand emerged as the primary source, accounting for the majority of imported gold, followed by the United States. This import trend underscores the multifaceted nature of Laos’ gold market, with a significant portion of domestically produced gold being exported while simultaneously importing gold from other countries.

Gold Mine Production (Tonnes) - Laos

Gold Mine Production (Tonnes) - Laos
Source: Metals Focus; World Gold Council

IMPACT ON LAOS’ ECONOMY

Laos’ growing production and demand for gold can have mixed effects on its economy. On the one hand, it boosts export revenues, particularly if it maintains its status as a net exporter to countries like Thailand, which could strengthen the kip and attract more investment to the mining sector, leading to job creation. Additionally, gold’s reputation as a safe haven could attract local investment, providing economic stability in uncertain times. Conversely, an overreliance on gold can have negative repercussions, such as higher costs for imported finished gold products and inflation. This focus on gold mining could also divert attention and resources away from other vital industries.
In Laos, gold jewellery is a favoured investment for wealth preservation, especially during inflationary periods, and experiences a surge in demand during festive seasons. However, consumer investment decisions are influenced by international gold prices, geopolitical events, and macroeconomic factors, which can affect domestic market sentiment.
While the increase in gold production holds promise for economic and infrastructural development due to the nation’s dependence on natural resources, it also brings about environmental challenges like biodiversity loss and water pollution. The social implications of expanded mining activities require diligent community engagement and adherence to health and safety protocols. It is therefore imperative for mining operations in Laos to comply with international environmental, social, and governance (ESG) standards, maintain transparency, and receive proper oversight from the government to ensure sustainable and equitable growth.

SOCIAL IMPACTS

As Laos escalates its gold production, achieving alignment with global climate goals becomes crucial. The international gold sector is targeting a 2 °C climate threshold by 2030, a goal that Laos is actively pursuing. Investors are now prioritising eco-friendly mining practices, making sustainability a cornerstone for securing investments and project financing.
The challenge for Laos lies in maintaining economic momentum through gold mining while transitioning to green practices. Success in this endeavour is critical for the country’s ability to compete globally and attract future investment. In essence, Laos stands at a crossroads where economic ambition must meet environmental responsibility, proving that the two can progress together for a sustainable future.
PTL Holding

ABOUT PTL HOLDING COMPANY

PTL Holding Company Limited is a diversified Lao holding company investing in Consumer Goods, Trading, Energy, Property & Asset Management, and IT Innovation. Founded in 2011, PTL fosters growth through its subsidiaries like PetroTrade, PlusCard, Black Canyon, Jungle, Molly Care, Sitthi Inter Trading, Sitthi Logistics, CS Lighting Electronics, Boualapha Power, Vientiane Logistic Park, Thanaleng Dry Port, Khouanchay Company and more.
PTL Holding business group is growing at a fast pace and is seeking talented individuals to join our expanding team. The company is committed to both business success and contributing to Laos’ full socio- economic potential.
Pawan Nawawattanasub
Pawan Nawawattanasub is the CEO of YLG Bullion Singapore and the CEO and founder of YLG Bullion International. She has almost 40 years of experience in the jewellery industry and established YLG in Thailand in 2003. In 2012, she brought YLG to Singapore. She sits on the Board of Directors of the Thailand Gold Traders Association and is a SBMA Committee member.
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