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Our Vision for the Gold Market

By Andrew Naylor, Head of ASEAN and Public Policy, World Gold Council

Published on June 10, 2021

Contributor ANDREW NAYLOR joined the World Gold Council in 2016 and is responsible for its activities in the region – institutional investment, government relations, and public policy initiatives. He preivously worked for international consultancy firm Cicero Group advising financial institutions on foreign investment and trade policy in Asia and regulatory reform. Andrew has been a supervisory board member of the EU-ASEAN Business Council since 2020 and he was a board member of the European Chamber of Commerce in Singapore from 2012 to 2019.

* This article was published in partnership with World Gold Council

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Covid-19 has brought the role of gold into sharper focus. Profound economic uncertainty has led to a renewed interest in gold’s safe harbour properties. This is why, for example, we saw unprecedented investment interest in gold as demonstrated by record inflows into physical gold exchange-traded funds.

But the past 18 months have also brought up some issues: consumer demand was severely impacted by market lockdowns, and logistical constraints at the beginning of the pandemic led to a temporary disconnect between the New York and London markets. While we quickly overcame these challenges, we can avoid many of them in the future by grasping the opportunities of the digital revolution.

Environmental, social and governance (ESG) issues have been top of mind among investors for many years, but Covid-19 has led to a renewed focus on sustainability. Sustainable investing has increased in popularity for several reasons including an increased consumer and investor consciousness, and because sustainable businesses are viewed as better able to weather external challenges such as pandemics.

WE SHOULD BE DOUBLING DOWN ON OUR EFFORTS TO INCREASE THE SUSTAINABILITY OF OUR INDUSTRY

A recent report by Cicero Group showed that 69% of people believe protecting the environment is growing in importance following the pandemic.1 The same report suggested that nearly three-quarters of respondents (73%) do not believe that brands are transparent about their supply chain. Protecting the environment, and enhancing supply chain integrity, have been two major priorities of the gold market for many years and the survey shows that we should be doubling down on our efforts to increase the sustainability of our industry.

OPPORTUNITIES OF THE DIGITAL REVOLUTION

We are at the cusp of the fourth industrial revolution. All sectors of the economy, and indeed the way we live our lives, are being impacted through advances in digital technology.

The gold market is not immune. To ensure that gold continues to meet the needs and aspirations of individuals and investors in the 21st century, the market should fully grasp the opportunities that new technologies provide. That is why the World Gold Council has set out a broad vision for the gold market, focusing on integrity, accessibility and fungibility. This builds on the work we have collectively achieved so far, and leveraging the latest technological developments and financial market innovations.

ENHANCING INTEGRITY ACROSS GOLD’S VALUE CHAIN

The gold industry has been working hard to ensure that our practices are sustainable and, where possible, exceed the expectations of investors, consumers and policymakers. Work to date includes the launch of the World Gold Council’s Responsible Gold Mining Principles (RGMPs), setting out clear expectations for consumers, investors and the downstream gold supply chain as to what constitutes responsible gold mining. The RGMPs recognise and consolidate existing standards such as the UN’s Guiding Principles, the OECD Due Diligence Guidance and the ICMM performance expectations into a single framework. This drives awareness of how gold producers are meeting ESG expectations and enhances reporting.

Other areas of work include analysing the carbon footprint of the gold industry, and raising awareness of how our industry is contributing to the UN’s Sustainable Development Goals.

Last year we launched the Retail Gold Investment Principles. These are designed to increase trust in the retail gold market, a sector accounting for US$50 billion annually. Trust is a significant barrier to the growth of the sector and the Principles are designed to enhance the integrity of the retail market through more robust best practice covering everything from responsible business conduct to transparency.

One area where a global, industry-wide solution is required is supply chain integrity. We need common agreement on a single system to trace the source of all forms of gold – including kilobars – throughout the entire supply chain. We should build on existing standards to develop a whole-of-market, global solution. While we have high standards on the responsible sourcing of gold, there is an opportunity to leverage new technological developments to create a truly global system of supply chain integrity covering gold in all its forms.

Of guaranteed provenance & integrity

  • Universal, ethical sourcing standards, ESG
  • Bar security technology applied across supply chain
  • Larger ecosystems of gold good delivery
  • Respected intermediaries enforcing rules, incl. financial crime

Accessible to all

  • 24/7 access, anywhere, for everyone
  • Frictionless customer experience
  • Full investor transparency on price, costs, volumes, and liquidity
  • Market practices clear, documented, well understood by market users

Fully fungible

  • A trading unit for gold agnostic of bar and brand
  • Ledgers providing legal title, processed instantly
  • Deposit or withdrawal of physical at any global location
  • Gold useable as an asset across the financial system

ENSURING UNIVERSAL ACCESS TO GOLD

A second priority for the gold market should be maximising accessibility to gold. Consumers, investors, and end-users of gold should be able to seamlessly transact and trade 24 hours a day and execute at best price. The World Gold Council has already worked to promote access, be it supporting the creation of new trading venues in India or acting as a catalyst for new product development in China, India and Japan. The gold market can benefit from the digital finance revolution by developing global market infrastructure that facilitates access to physical gold through online or digital platforms.

Gold is a hugely important household financial asset in many markets, especially in Southeast Asia. The model of purchasing physical gold from a jewellery or bullion shop will still exist, but we should work to facilitate the development of new channels of access. This is key if we are to ensure that gold plays an optimal role in the individual finances of younger, tech-savvy consumers.

ENABLING GOLD’S FUNGIBILITY

Finally, and going hand-in-hand with accessibility, we want to ensure that gold is fully fungible. This means we should be working to reduce fragmentation and ensure that local and regional gold markets are fully interoperable. Through a combination of harmonised standards, smart regulation, and technology it should be possible to deploy gold across the global financial system, including depositing or withdrawing gold across a network of global locations.

This would be beneficial for several reasons, not least engendering trust through transparency and legal certainty, as well as broadening participation in the market due to increased liquidity, new use cases, and lower trading costs in all markets.

A DIVERSE MARKET

All of this can be achieved through common agreement on standards, technologies, and regulation. The gold market is global and diverse. Different forms of gold meet the varying needs and preferences of consumers, investors and end-users.

But to be successful in delivering this vision, the entire supply chain must come together to develop an interoperable and harmonised solution to the challenges of the 21st century, and opportunities afforded to us by the digital revolution.

Notes

1

The Great COVID Reset Creating a More Sustainable Tomorrow (Cicero AMO, May 2021) https://cicero-group.com/wp-content/uploads/2021/05/The-Great-COVID-Reset.pdf

Contributor ANDREW NAYLOR joined the World Gold Council in 2016 and is responsible for its activities in the region – institutional investment, government relations, and public policy initiatives. He preivously worked for international consultancy firm Cicero Group advising financial institutions on foreign investment and trade policy in Asia and regulatory reform. Andrew has been a supervisory board member of the EU-ASEAN Business Council since 2020 and he was a board member of the European Chamber of Commerce in Singapore from 2012 to 2019.

* This article was published in partnership with World Gold Council

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Lee Jia Yi

OPERATIONS & ADMIN EXECUTIVE
Before joining SBMA, Jia Yi worked as an Admin & Reporting Officer in her previous role. She holds a Diploma in Business & Social Enterprise from Ngee Ann Polytechnic. Jia Yi is responsible for managing and maintaining physical and digital files in SBMA, supporting invoicing processes, reconciling receivables and payables, coordinating meetings and conferences. Additionally, she will provide support to the team and assist the Business Director in managing the Association’s office operations and general administrative activities.

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Emily Oh

OPERATIONS & ADMIN EXECUTIVE
Emily Oh is the Operations & Admin Executive, a seasoned professional who values teamwork and effective communication. She is skilled at adapting to new challenges and takes a proactive and resourceful approach to every task. Before joining SBMA, Emily had experience coordinating international travel arrangements and spearheading community initiatives. Her role at SBMA will be providing operational and administrative support for projects and other matters to the team.

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Clara Chang

MARKETING & COMMUNICATIONS EXECUTIVE
Clara Chang joins SBMA as the Marketing & Communications Executive, enriching the team with her extensive experience in content creation, social media management, and digital marketing. Prior to joining SBMA, Clara held the position of Marketing Executive at her previous job. She holds two bachelor’s degrees from the University at Buffalo, one in International Trade and another in Geographical Information Science. Her core duties will include maintaining the SBMA website, managing the quarterly Crucible newsletter, among other responsibilities.

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Mr John Levin

Global Metals
TD Securities
John Levin is the Head of Metal Sales & Trading – APAC at the Toronto Dominion Bank’s Singapore office. Prior to this role, he devoted seven years to leading precious metal sales for the ANZ banking group in his home country, Australia. Notably, from 2009 to 2011, John played a significant role on the management committee of the London Bullion Market Association while serving as the Head of Precious Metals Sales for HSBC Global Banking and Markets in the UK.

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Fabian Lew

MARKETING & COMMUNICATIONS OFFICER

Fabian was a Business Development and Marketing Associate before joining SBMA. He graduated from Singapore Management University with a Bachelor’s degree in Economics.

He has joined SBMA since February, 2022.

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Margaret Wong

BUSINESS DIRECTOR

Margaret Wong, Business Director at SBMA (Singapore Bullion Market Association), brought valuable experience from her previous role at the World Gold Council (WGC). Her tenure at WGC provided her with extensive exposure to the gold community in Singapore and the broader region. This background has been instrumental in establishing strong working relationships within the industry.

Margaret’s role at SBMA encompasses a diverse range of responsibilities. She oversees office management, business support processes, finance, and administrative functions essential for the smooth operation of the team and management committee. Additionally, Margaret handles membership matters, member communications, and addresses public inquiries related to SBMA.

One of Margaret’s key responsibilities is coordinating with the Event Management Company for SBMA’s prestigious annual event, the Asia Pacific Precious Metals Conference. This flagship conference plays a crucial role in the industry, making her involvement pivotal in its success.

Described as resourceful and self-motivated, Margaret Wong brings a wealth of skills and experience to her role at SBMA, ensuring efficient operations and effective engagement within the precious metals community in Singapore and beyond.

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Albert Cheng

Chief Executive Officer

Albert Cheng joined the World Gold Council in March 1993 as a Regional Manager, becoming Managing Director, Far East in 2003. He retired at the end of March 2015 and was subsequently named its Advisor. He has also been an International Advisor to the Shanghai Gold Exchange since 2002.

His marketing career began with Dentsu Young & Rubicam, Hong Kong in the early 80’s. He began gold marketing in July 1985 when he joined the Royal Canadian Mint as a Regional Manager for Southeast Asia.

He was appointed honorary CEO of SBMA in November 2015. He is responsible for the success and strategic development of SBMA, represents the interests of the Association, and is responsible for all the legal and regulatory aspects of the work of the Association. He is the primary contact for regulators and government bodies on bullion market development.

Ms Pawan Nawawattanasub

Ms Pawan Nawawattanasub

CEO
YLG Bullion Singapore Pte Ltd

Pawan is the CEO of YLG Bullion Singapore 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, the Thailand Futures Exchange’s Arbitration Committee, and the Rotary Bangkok committee. She holds a master’s degree in Political Science.

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Mr Shaokai Fan

Head of Asia-Pacific (ex China) and Global Head of Central Banks
World Gold Council
Shaokai Fan is the Global Head of Central Banks at the World Gold Council, responsible for advising governments on gold matters, and enhancing the gold market through engagement, dialogue, and thought leadership. He works directly with central banks and sovereign wealth funds on investment considerations. Prior to this position, Shaokai held multiple roles at Standard Chartered Bank, including Director for Asia Strategic Initiatives and Associate-Director for Public Sector coverage. Shaokai holds a Masters of Public Administration from Columbia University and the London School of Economics, and an undergraduate degree in finance and economics from New York University.

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Mr Alan Liew

Head of Bullion & Commodities Trading
United Overseas Bank Limited
Alan is Head of Bullion and Commodities Trading for Group Trading in Global Markets, United Overseas Bank (UOB). Alan joined UOB and started the bank’s commodities trading business in 2014, previously he spent eight years in Standard Chartered Bank (SCB) trading both precious and base metals. During his tenure at SCB, he obtained the SGE gold trader licence and was part of the pioneering team for the SGE business and the FX quantitative trading team. Prior to trading, he worked for Monetary Authority of Singapore in the Financial Risk Management Division. He holds a BSc (Hon) in Computer Science at National University of Singapore and a MSc in Financial Engineering at Nanyang Technological University.

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Mr Nikos Kavalis

Managing Director
Metals Focus Singapore Pte Ltd
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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Mr Nuttapong Hirunyasiri

CEO
MTS Gold Global Trading Pte Ltd
Nuttapong Hirunyasiri is the CEO of MTS Gold Group, one of Thailand’s top 10 companies and top 3 bullion companies. He started MTS Gold Group’s first overseas office in Singapore and has been expanding the group business internationally. He focuses on product development and innovation for gold investment, with the aim of being a leader in providing the full suite of gold investment services in the ASEAN region.

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Mr Raman Walia

Executive Director, Head of Commodities Sales – APAC
JP Morgan Chase Bank N.A.

Raman is Executive Director and Head of Commodities Sales, APAC, for J.P. Morgan. He joined JPMorgan in 2008 in New York, moved to Singapore in 2011, and helped expand the precious metals business in the region. Raman has an MBA from Cornell University, and likes to travel in his spare time.

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Mr Andrew Clarke

Head of Brink’s Global Services
Brink’s Global Services Pte Ltd

Andrew Clarke is the Head of BGS (Brink’s Global Services) for Singapore, Indonesia, Malaysia and Brunei. He has held various leadership positions throughout his career in secure logistics and risk management with Brink’s, which started in Hong Kong in 2010. Andrew relocated to Singapore in 2018 to expand the precious metals line of business along with Brink’s portfolio of services and industries.

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Mr Kazuya Naoki

Head of Metals, Asia
ICBC Standard Bank Plc, Singapore Branch

Kazuya (Kaz) Naoki is the Head of Metals, Asia of ICBC Standard Bank in Singapore and is responsible for the precious & base metals sales and trading in the region. He joined Standard Bank Plc Tokyo Branch in 2008 and was relocated to its Singapore Branch in 2013 whose controlling stake was acquired by the Industrial and Commercial Bank of China in 2015. Prior to joining Standard Bank, Kaz spent 11 years focusing on commodity trading and risk management with Mitsui & Co in Tokyo, Sydney and London. Kaz has been serving on the SBMA Management Committee since 2016.

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Mr Vinh Nguyen

Head of Precious Metals, Asia
StoneX APAC Pte Ltd

Vinh Nguyen joined StoneX Group in Singapore at the beginning of 2008 and responsible for its APAC precious metals activities since 2019 until now.

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Mr KL Yap

General Manager, Singapore Refining Business Unit
Metalor Technologies (Singapore) Pte Ltd
KL YAP is the General Manager of Metalor Technologies (Singapore) Pte Ltd’s Singapore Refining Business Unit. He joined Metalor in 2013, initially in Refining Sales. In 2014, he became Refining Business Unit Manager, leading the development of a new precious metal refinery. KL was Vice Chairman of SBMA from 2017 to 2021, now serving as Chairman. With a degree in business commerce, finance, and marketing, he brings prior experience from refinery and heavy industries.