Both the firms declared for bankruptcy after being unable to account for large amounts of precious metal or be charged by federal prosecutors in Miami for buying USD 3.6 billion illegal gold from criminal groups in Latin America respectively. The industry is now discussion on formulating its own policy, though the problem is that banks, which lend to the industry, have to accept it. Giles Coghlan: Well this is one topic that I’ve been speaking a lot with HYCM clients about. DGD scrutinises reports of the management of its members, which has audit details, unlike the LBMA which seeks only a compliance report and assurance statement from its members, critics point out. If the US dollar weakens, that would further benefit the Antipodean currencies like the Australian dollar and the New Zealand dollar. The company focuses on the Marketing and Trading of a wide range of fertilizers in Central Asia, the Black Sea region, and Europe. So, typically the Australian dollar and the New Zealand dollar would benefit from a boost in commodity prices. DGCX commenced trading in November 2005 as the regions first commodity derivatives exchange and has become today, the leading derivatives … JP Morgan Chase had to make a record USD 920 million settlement. Transcript. The LBMA has said that if these countries do not meet the standards, they would be blacklisted. World Finance: And how about currency trades? He was responding to reports that Dubai was the focus of LBMA norms, though it had not mentioned it overtly. LAMAR COMMODITY TRADING DMCC was established in Dubai, UAE in 2013 and started the business worldwide, significantly in Africa, India and most countries in Asia. US hits highest death toll since May with hospitals already full. The London Bullion Market Association (LBMA) recent move to check laundering and “conflict” gold by fixing some norms is being strongly opposed by at least three gold marketing centres, including India. Explainer | COVID passport: Is airline travel going to be more difficult? The Federal Reserve is set to keep interest rates at low levels right through 2023; the US is on the verge at the moment of releasing a large stimulus package, and quantitative easing levels are at record levels. Big Story | NPAs likely to rise in next 12-18 months: Why this is a cause of concern for the Indian Banking system? Giles Coghlan: Well, HYCM already has experience in successfully withstanding some of the biggest market crashes and major volatility over the years, so, our clients can be sure that they’re trading with one of the most solid and secure brokers in the world. World Finance: Giles, how have HYCM and your traders responded to this year’s crisis? The association is, perhaps, acting on an advisory issued this month by The Sentry, a US-based investigative and policy body that tracks dirty money connected to African war criminals and trans-national war profiteers. The Sentry’s, in its advisory, said that UAE should plug the regulatory loopholes and gold industry actors such as LBMA should engage UAE authorities to press for third party audits and cap gold cash transactions above a certain limit. He questioned LBMA’s motive to blacklist entire nations rather than target independent industry stakeholders on a case-by-case basis and termed the London body’s move as “authoritarian approach to maintain its majority control through conjecture and double standards”. So they predict that over the next five to 10 years there’s going to be a heavy investment in nickel mining, and a greater demand for nickel itself. However, the record high volatility also provides challenges. And this could be a really excellent time for commodities, as global growth starts to get going again on global vaccine hopes. Business Insight | RBI panel proposes conversion of large NBFCs to banks; industry cautious, Ideas For Profit | Construction sector Q2FY21 review: Back in action, time ripe for bargain-hunting. LBMA, one of the most influential gold market authorities, had in a letter earlier this month to various countries with large gold markets, said that it would stop gold from these countries if they don’t meet the regulatory standards. The LBMA move has come at a time when gold has gained over 26 percent this year with prices hitting a record USD 2,063.20 an ounce on August 6. And many brokers have been reporting increased volumes at this time. With over 40 years’ experience and representation in the UK, Hong Kong, Cyprus and Dubai, the business has seen a lot of market turmoil; its Chief Currency Analyst, Giles Coghlan, outlines how traders have been responding to this year’s record high volatility, and explains why commodities are a good pick as the world looks forward to a vaccine. Until a decade or so ago, Dubai’s nickname as the City of Gold was due to its historic Gold Souk. 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Learn more, and watch Giles’ free webinars, at, BDSwiss: how to successfully adapt business operations in the age of COVID-19, The art of the trade: how to profit in a changing investment market, Charting the evolution of trading with ETFinance, The next global frontier: Millennial investors are driving growth in emerging markets, Sweet nothings: what West Africa’s COPEC plan means for cocoa farmers, Finding the right work-life balance when trading, XM expects an up-and-down year for forex markets, Libertex Group: experienced brokers are essential when navigating volatile markets. Pointing to the targeting of countries than individuals, Sulayem wondered why when two of LBMA didn’t consider stopping gold imports from the US when two of its previously certified Good Delivery List members, Republic Metals Corporation and NTR Metals, declared for bankruptcy. Arabian Commodities FZE is a leading international commodities trading company in Dubai, Sharjah, UAE and an emerging leader in conceptualizing and delivering bespoke trade financing solutions for medium and large companies. Copyright © Ltd All rights resderved. So over the next five to 10 years, the commodity nickel could be a great investment. And as long as they keep interest rates low, you would expect that to be very good for gold, which has grown and gained in value in all of the last major financial crises that we’ve had. Reproduction of news articles, photos, videos or any other content in whole or in part in any form Universal Commodity Trading (UCT) is established under the Dubai Multi Commodity Centre (DMCC), a Government of Dubai entity as a financial brokerage firm in the year 2010. The Indian bullion industry feels LBMA has acted arbitrarily and it should join hands with Dubai to formulate their own standards that will be widely accepted. India’s COVID-19 vaccine plan: What PM Modi said about vaccination process, Experts point out 'gaps' in AstraZeneca’s COVID-19 vaccine data. Now this could also be a very, very good time for gold. DMCC Executive Chairman and Chief Executive Officer (CEO) Ahmed Bin Sulayem, in a Linkedin posting, said the London body was trying to undermine UAE’s success. Those irked with LBMA’s letter point out that DMCC’s Dubai good delivery (DGD) is better than LBMA’s system. First is the cartel-like control it wields over the industry imposing its discretionary brand of blacklisting without being a democratically-elected trade body. The DMCC CEO said LBMA letter seemed to be an agenda to disrupt any centre that threatened its market share. The DMCC CEO has raised a few issues with regard to LBMA. As a member of the Dubai Gold and Commodity Exchange (DGCX), the company provides financial products and services to both the corporate and individual investors. It is a very difficult investment environment, and the kind of uncertainty in markets at the moment favours a much shorter-term horizon, as longer-term investments – particularly early in the year – were crowded with considerable uncertainty. The Sentry terms it “conflict” gold in view of armed conflict and corruption in countries such as Congo, Sudan, South Sudan, and Central African Republic. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of is prohibited. The bullion sector points out that the Organization for Economic and Development Cooperation, a group of 37 nations, has come up with responsible sourcing guidelines for gold and thus, the LBMA directive was not required.