Introduced in 2012, the LBMA’s¹ Responsible Gold Guidance requires strict adherence to rules around the provenance of gold for its Good Delivery refiners.
It was set up to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering, and to combat terrorist financing practices in the entire gold supply chain.
The Guidance has been regularly updated since its introduction, most recently in 2021 to address corporate governance, environmental and sustainability issues. All refiners wishing to sell into the London Bullion Market must implement and adhere to LMBA’s Responsible Sourcing Programme in order to remain on the LBMA Good Delivery List.
The Guidance is based on internationally recognised frameworks such as OECD Due Diligence Guidance for Responsible Supply Chain of Minerals from Conflict Affected and High Risk Areas, Swiss and US KYC, Anti-Money Laundering and Combating Terrorist Financing regulations. These detailed standards help to ensure companies respect human rights and avoid contributing to conflict. As such, the Guidance crosses over with several UN Global Compact Sustainable Development Goals including no poverty, reduced inequality, peace justice and strong institutions.
Compliance with the Guidance include measures such as:
Since we can only be certain that gold minted from 2012 onward has been sourced in compliance with the LBMA’s Responsible Gold Guidance, we have instructed our custodian, J.P. Morgan Chase Bank, to minimise the Invesco Physical Gold ETC’s exposure to gold minted prior to this date. As a result, since July 2020, 100% of the gold bars held in the segregated account of the Invesco Physical Gold ETC are minted since 2012.
For complete information on risks, refer to the legal documents.
Value fluctuation: The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested.
Limited recourse: If the issuer cannot pay the specified return, the precious metal will be used to repay investors. Investors will have no claim on the other assets of the Issuer.
Commodities: Instruments providing exposure to commodities are generally considered to be high risk which means there is a greater risk of large fluctuations in the value of the instrument.
Currency hedging – ETCs: Currency hedging between the currency in which the underlying precious metal is typically quoted and the currency of the certificates may not completely eliminate the currency fluctuations between those two currencies and may affect the performance of the certificates.
Today, gold plays an important part in some investors’ portfolios, for a variety of reasons. From central banks wanting to diversify their reserves to individuals wanting physical assets that may retain value over time. Find out more.
Gold rose 4.2% in October, once again setting new records, despite the US Dollar and Treasury bond yields rising in the month, which would typically be headwinds to the yellow metal. The more powerful drivers were geopolitical, especially further escalation in the Middle East conflict and uncertainty ahead of the US Presidential election. Discover insights into the key macro events and what we think you should be keeping your eyes on in the near term.
In this second part of the Gold Report, we explore the various sources of supply and demand to further explain recent movements in the gold price.
1 London Bullion Market Association (“LBMA”) is the primary standard-setting body for the global wholesale market for gold and other precious metals
Data as at 31.10.2023, unless otherwise stated.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change. All investment decisions must be based only on the most up to date legal offering documents. The legal offering documents (Key Information Document (KID), Base Prospectus and financial statements) are available free of charge at our website www.invesco.eu and from the issuers.
