Despite Covid-19 Closures, There is Enough Gold Refining to Meet Demand – LBMA
The London Bullion Market Association (LBMA) said on Friday that there is more than enough gold refining capacity worldwide to meet demand, and that refineries, shippers and banks are working to move metal.
The closure of several large refineries and most of the world’s air traffic due to the Corona virus outbreak have disrupted the gold supply chain, as has the demand for metal. Gold is often seen as a safe investment in turbulent times.
Fears that gold would not be flown from London to New York to meet Tuesday’s contractual obligations pushed prices apart in both cities than in decades and caused chaos in trade.
“While some refineries have ceased production due to covid-19, other refineries are ready for good deliveries and able to meet industry requirements,” LBMA said in a statement.
Good delivery refiners are those that have been accredited by LBMA and supply the majority of the world’s gold. There are good delivery refineries in 31 countries.
“Refineries and other market participants are working actively with logistics companies to overcome travel restrictions and ensure the physical movement of metal, such as by charter or cargo flights,” said LBMA.
