Tech may prevent spread of conflict minerals, money laundering

23/01/2018 14:57 AST

Blockchain technology may help keep track of the roughly $200 billion of the precious metal dug from remote mines, traded by middlemen and melted down by recyclers that’s sold each year to buyers scattered around the world.

The London Bullion Market Association, which oversees the world’s biggest spot gold market, will seek proposals including the use of blockchain for tracing the origins of metal, partly to help prevent money laundering, terrorism funding and conflict minerals, according to Sakhila Mirza, an executive board director.

“Blockchain cannot be ignored,” Mirza, also general counsel of the LBMA, said in an interview Monday. “Let’s understand how it can help us today, and address the risks that impact the precious metals market.”

Markets in commodities from crude oil to diamonds and even tomatoes are looking at using the digital ledger technology that underpins cryptocurrencies like Bitcoin -- known to some as "digital gold" -- to track ownership. Tracing gold supply is key to preventing metal that funds armed conflict from entering world markets, identifying owners and maintaining security from mine to vault.

How London’s Gold Market, the World’s Largest, Evolved: Timeline

The LBMA has pushed ahead with efforts to modernize a trade that until recent years relied on phone auctions to set a key benchmark price for the market.

“For us, it’s a question of where the gold comes from,” Mirza said.

The LBMA oversees a list of refiners approved to supply the London market. Its London Good Delivery List sets global standards for large gold and silver bars. The LBMA will also study tagging the metal and using other security features to ensure bars are exactly what they say they are, it said in a statement Tuesday.

“Everything that ends up in an LBMA good-delivery refiner needs to be tracked in the supply chain, regardless of whether it ends up as a large bar in a London vault, a kilo bar shipped to the Far East, or a coin owned by a collector,” Mirza said. “A lot has been done already but it’s still very paper-based. We now want to formalize it through an efficient and possibly technologically based solution.”


Bloomberg

Ticker Price Volume
QNBK 127.00 43,799
SABIC 104.61 3,002,041
BURUJ 35.17 343,045
STC 75.83 355,162
JULPHAR 2.18 0
ALMARAI 51.15 371,471
PETRORABIGH 23.55 3,067,281
(In US Dollar) Change Change(%)
Gold 1,328.2 -3.2 -0.24
Silver 16.5 -0.1 -0.57
Platinum 994 -2 -0.2
Palladium 1,035 6 0.58
Gold dips on higher prospect of rising US interest rates

23/02/2018

Gold inched lower on Thursday and was headed for its biggest weekly loss in 2018 as the dollar was boosted by minutes from the last US Federal Reserve meeting that showed policymakers backed further

Gulf News

Gold dips on higher prospect of rising US interest rates

23/02/2018

Gold inched lower on Thursday and was headed for its biggest weekly loss in 2018 as the dollar was boosted by minutes from the last US Federal Reserve meeting that showed policymakers backed further

Gulf News

Oman’s first manganese project set for launch

18/02/2018

Gulf Mining Group, one of the largest mining and mineral processing corporations in the Sultanate, is preparing to bring its manganese concentration plant — the first of its kind in Oman — into opera

Oman Daily Observer

Gold shines as traders count down to `critical’ CPI, Dalio buys

15/02/2018

Gold climbed for a third day as the dollar sagged, with investors counting down the hours before key US inflation data that may offer fresh clues on monetary tightening. Adding lustre for the metal,

Gulf News

Gold hits 4-week low on firmer dollar amid US rate hike views

09/02/2018

Gold prices dropped for a third straight session on Thursday and hit a fresh four-week low, as investors liquidated their long positions on a firmer dollar, while expectations of more US rate hikes t

Gulf News