CIIBJO recently released the third of its Special Reports which are being prepared in the run up to the 2019 CIBJO Congress to be held in Manama, Bahrain, on November 18, 2019.

The Precious Metals Special Report has been prepared by the CIBJO Precious Metals Commission, headed by Huw Daniel.  

The report highlights the scrutiny of national authorities -- particularly in the United States --   who are focusing on the integrity of the gold supply chain. Furthermore, the report provides an overview of supply, demand and their effect on prices in the gold, platinum, palladium and silver markets.

“In a time of increasing uncertainty, investors, predictably, are seeking safe havens in these commodities, and that has implications on price,” said Daniel. “However, the outlook for demand is less clear, because the integrity of the gold supply chain has come under increasing scrutiny.”

The report explains that the focus on practices in the gold industry is coming from two different sources. “First, the mainstream media is intensifying reportage of “dirty gold” and issues around where and in what way the metal is sourced, and how it is moved through the supply chain,” the report noted. “Second, the U.S government has given notice to the jewellery industry that, for purposes of national security, imported goods should be labelled with all of the countries they have passed through on the journey to the American consumer.”

However, the market-analysis section of the report predicts a favourable supply-demand balance for precious metals, despite the increased pressure. The report opines that as a general rule, it is not the jewellery market that is the deciding factor, but rather the investment market or the automotive sector, as the case might be. “In the case of palladium, for example, there has been increasing pressure on supply due to auto-catalyst systems, because of stricter fuel emissions legislation being imposed globally,” said CIBJO.