Valcambi SA has resigned from the Swiss Association of Gold Refiners following a disagreement over where it sources its gold.
Ticino-based Valcambi left the Swiss Association of Precious Metals Producers and Traders, which co-ordinates communications and lobbying on behalf of the industry and requires members to sign a code of conduct, due to “irreconcilable differences”, the association said in a statement.
Valcambi confirmed its departure in a statement on Friday, suggesting the disagreement was over the origin of its gold supplies. Sourcing and supply chains have become a key focus in the gold market because of the difficulty in determining the origin of the metal, which is often held outside the banking sector and can be remelted countless times.
The world’s largest precious metals refiner has faced scrutiny from local media and NGOs in recent years for sourcing gold from the United Arab Emirates, where opaque supply chains can make it difficult to determine whether the metal has been responsibly sourced. Other major Swiss refiners have adopted policies against buying gold from the UAE.
“Valcambi doesn’t agree with the position of some members of the ASFCMP board to exclude certain countries of origin,” the company said in the statement. “Pretending that gold of dubious origin will not enter the Swiss market by excluding direct deliveries from certain countries is not the right approach.”
Valcambi is accredited by the London Bullion Market Association, widely regarded as the world’s authority on precious metals. To maintain this accreditation, the refinery must undergo annual audits to demonstrate compliance with responsible sourcing standards designed to prevent gold tainted by conflict, money laundering and environmental abuse from entering the supply chain.
“What is needed is an appropriate risk management by implementing an enhanced due diligence with sophisticated due diligence tools,” Valcambi said in its statement. “Valcambi has received confirmation of the adequacy of its due diligence tools and protocols in all of its audits.”
