Page 28 - Bullion World Volume 04 Issue 08 August 2023

Bullion World | Volume 3 | Issue 8 | August 2023

increasing number of COMEX Gold 2. 27th July 2020 – COMEX
inventories in the New York area. We proceeded to add certain LBMA
can see a tremendous increase in good delivery brands for delivery
the deposits at the CME vaults since against Gold Futures (GC) and
the beginning of the pandemic. The Silver Futures (SI) to afford
overall movement of gold in and out market participants expanded
of the CME vaults have increased a delivery options.
large amount due to the geo-political 3. 3rd May 2021 – Producers of
tensions and also the fed’s tightening silver, platinum and palladium
approach since almost a year. Some will need to be in compliance
of the milestones achieved along the with LBMA Responsible
way have been mentioned below:- Silver Guidance and LPPM
Responsible Platinum Guidance
Mr Sachin Patel
1. 8th April 2015 – COMEX has and Responsible Palladium
aligned itself with international Guidance accordingly.
Mr Sachin Patel, CME Group unlike
the other panellists who had specific standards for conflict-free Sovereign Metals Limited is in the
gold by requiring producer of
systems in place, the CME group business of refining precious metals
essentially tracks the work done by gold bars to be in compliance (gold and silver) and supplying
with LBMA Responsible Gold
the LBMA and the WGC with regards highest and most consistent quality
to the GBI initiative. In the first slide Guidance. products and related services and
of the presentation we can see the solution to customers at their place
of convenience by leveraging its
competent and customer-focused

Questions- human resources, industry-leading
technology infrastructure and
To Mr David Woodford- How are the costs reflected Ms Sakhila Mirza to Mr Urs Roosli. transparent and globally
in this GBI process at your particular firm? Who is going to pay for the database? compliant-sourcing practices.
Most of the impact costs are sustained by Refiners. Yes, The expense for the database isn’t super expensive and
our system does cost a substantial amount but none of it would not have an effect on the daily gold transactions. Sovereign Metals Limited would
is passed down to the consumers. For our model at aXedras it is a small fee charged to the pursue environmentally sustainable
miners, refiners and banks. The fee is defined on how manufacturing practices and would
To Mr Urs Roosli- How can service providers like much of the system is used by the particular company. strive to be a world leader in its
aXedras help facilitate the market by collaborating chosen segment from India.
with its competitors? To Mr Gregor- What about the costs incurred at the
First of all, there should be no shift from the old systems refiner level?
which are being used and the new system must The costs incurred are clear from our side that the
efficiently integrate with the existing one. There can be custodian will have to bear with the costs involved. The
exchange of data between the competitors to find better custodians will be paying a nominal fee for the service
solutions and for communication purposes, but it wholly provided. www.sovereignmetals.in
depends on how compatible one’s framework is.
Mr Sachin Patel on the costs involved:- Deliveries at
Ms Ruth Crowell to Mr Urs Roosli- What are the exchanges have a fixed fee assigned to them which is
challenges in the system to address and how not passed down to the consumers. We at CME group
can the downstream players play a role in this look at these costs in a commercial manner.
framework?
One of the main challenges is to get the technology
right and make sure that it integrates efficiently into the
existing system. There is a program being set which
starts right from the mines to coordinate the high level
players first. Once the mines are documented without
any hassle we would further extend this process.

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