Page 20 - Bullion World Volume 3 Issue 11 November 2023

Bullion World | Volume 3 | Issue 11 | November 2023

Key Takeaways from the LBMA

Conference: Bullion Market Insights

The recent LBMA Conference allocation. The Bank for International requires collaboration among
convened experts and Settlements (BIS) highlighted gold's various stakeholders, including
professionals from the gold role in supporting balance sheets governments, industry participants,
market to explore various and liquidity, with a 15% allocation and organisations.
aspects of the industry. to the precious metal. The panel
This summary, presented stressed diversification and gold's Gold's Resilience: Despite
through a webinar by three role in protecting against tail risks. pandemic challenges and
renowned experts - Mr James geopolitical uncertainties, gold
Steel, Ms Suki Cooper, and Palladium and Platinum Outlook: remains a valuable asset in investors'
Ms Rhona O’Connell, highlights The session on precious metals portfolios, serving as a reliable store
key insights. outlook focused on palladium and of value and a hedge against inflation
platinum, considering the impact of and currency devaluation. While
Responsible Gold and electric vehicles and energy policies. central bank demand for gold may
Sustainability: A recurring theme Discussions included substituting decrease slightly, it will continue to
throughout the conference was the platinum and palladium, outlining be a net buyer due to diversification
significance of responsible gold supply chain obstacles and risks. and geopolitical risk mitigation.
practices. Emphasizing the need Estimates suggested continued
for sustainable gold, the event growth in PGM demand through Silver's Surprising Surge:
recognized gold's economic and 2024-2025, with recycling potentially The silver market stands out with
social responsibilities. Initiatives bridging the gap as vehicles stay on expected significant growth,
like the Swiss Initiative for Better the road longer. attributed to its role in sustainability
Gold in Artisanal and Small-Scale and green technologies. A
Mining aim to address challenges The Role of Policy Makers: projected 18% increase in its price
faced by artisanal miners, including The conference highlighted underscores its importance in
hazardous working conditions and policymakers' priorities in promoting photovoltaic demand and electric
the use of mercury. energy-efficient solutions while vehicles.
considering the availability of critical
Keynotes: Notable keynote minerals like copper, cobalt, and Platinum and Palladium
speakers, Mr David McWilliams and lithium. This perspective offered a Prospects: The conference
Mr James King, provided critical unique angle for understanding the discussed the outlook for platinum
insights. McWilliams delved into challenges and opportunities in the and palladium. There is a belief
the world crisis and discussed the energy transition. that the platinum market is heading
impact of scepticism toward experts towards a deficit, while palladium is
on economic stability. James King Commitment to Sustainability: expected to experience a deficit this
focused on China's role in the global The LBMA's commitment to year. These positive outlooks are
gold market and its potential for enhancing sustainability and based on fundamental factors.
continued growth, anticipating a shift responsible sourcing is a step in the
to Southeast Asia. right direction. Continuous efforts by Central Bank Actions: Central
the OECD to update due diligence banks worldwide are expected to
Gold in Investment Portfolios: guidelines reflect the evolving nature continue their net purchases of gold,
A panel discussion explored diverse of the field. reaffirming its status as a reliable
approaches to including gold in store of value. While questions arise
investment portfolios. Panellists Collaboration for ESG Goals: about central banks' motives, silver
offered varying perspectives, from Achieving comprehensive ESG is unlikely to become a preferred
short-term trading during market goals is an ongoing journey. asset, with gold remaining the
dislocations to longer-term strategies Building a framework and primary precious metal for central
with a two to three per cent gold navigating the complex terrain bank reserves.

20