Fairalloy

ASM & Recycled Gold: LBMA considers them Two Sides of the Same Coin If you're a watch, jewelry, or technology manufacturer using "recycled gold" in your supply chain, I encourage you to review the two LBMA links included in this post. It appears the LBMA offers valuable context on the situation. I understand it can be challenging to shift away from a narrative that’s been deeply ingrained over many years, especially given that recycled gold processes around $240 billion annually, exceeding primary gold production. The solution lies in being straightforward, transparent, and gathering as much information as possible, as they have been doing. Unfortunately, they are overly reliant on the outcomes of the current ISO discussions, which continue to perpetuate well-known issues. These discussions won’t bring real change, particularly concerning the traceability of "recycled gold." The result will likely be the same persistent problem—now with an ISO-certified seal. "Yet multiple interviewees affirmed to us that despite the best intentions of GDL refiners, and the imposition of increasingly stringent rules requiring the identification of the sources of recycled gold, it is still possible for ASM gold – however irresponsibly it has been produced - to enter the recycled gold market and then to pass at some point through GDL refiners. Combined, the facts that most ASM gold has not, or may not have been mined responsibly, and that this gold can and does enter the international market, including GDL refiners, via recycling, are damaging for the reputation of the gold industry as a whole and for the LBMA and its membership in particular. This reputational damage is despite a number of LBMA members having for some years invested time and resources into increasing their uptake of responsibly mined ASM gold." "The first is to invest significant energies and resources to address the governance challenges and market exclusion associated with Artisanal and Small-scale Mined (ASM) gold, while also responding to concerns that current definitions of recycled gold support unsubstantiated product claims. At first glance, these issues may seem unconnected, but LBMA considers them two sides of the same coin." https://lnkd.in/eEmaqpwX https://lnkd.in/e-EgTEPX

🚨 Why Relying Solely on ISO 14021 for "recycled" gold definitions in the Gold Industry is a Risky Move 🚨 I strongly recommend that the Responsible Jewellery Council avoid placing blind trust in the perspective of gold "recyclers", as their view is often limited and biased. Additionally, it's crucial not to rely solely on ISO 14021, which is currently under revision, with discussions just beginning at the committee draft stage. The application of this standard to the gold industry is likely to face significant scrutiny, and the outcome of the revision remains uncertain. Furthermore, the newly released ISO 59004 offers a clear definition of waste, yet this has been conspicuously overlooked in the new “ recycled gold” definitions in the ISO 21261-3. These are essential points that the RJC standards committee should carefully consider The characteristics of a recovered material alone do not classify it as waste. Pre-consumer and post-consumer gold are just two aspects among many that determine whether something is considered waste. Focusing solely on these two characteristics while ignoring the others that clearly define waste, in order to gain economic benefits in certain countries, is considered fraudulent. Only two characteristics of recovered material are being used to justify labeling gold as recycled, while important definitions like waste, value, and recovered material are being ignored. These definitions, particularly those outlined in the new ISO 59004, are crucial to accurately determining what qualifies as recycled material. For a material to be classified as recovered (and eventually recycled), its status depends on its value to the current owner. In essence, if the material holds value, it cannot be considered waste, and therefore cannot be recovered or recycled. This principle aligns with the newly established ISO 59004. Pre-consumer and post-consumer are only two aspects of recovered material, but these terms must be considered alongside key definitions such as waste, recovered, recycled, holder, and value. These concepts, as outlined in the new ISO 59004, provide essential context for understanding recovered material. Postponing action on this issue will only increase current market tensions. The assertion that 3,000 tons of gold are being diverted from waste streams each year, with a market value of $240 billion, is unsustainable—particularly when only 50 tons of ASM gold are actually being processed according to the latest LBMA data. Furthermore, there are numerous cases where illicitly sourced gold is being laundered and misrepresented as recycled gold. https://lnkd.in/gFeCdGuB Charlene Nemson Suzanne Brooks Sara Yood Maggie Gabos Marie-Charlotte Druesne Chancogne Effie Marinos Robin Kolvenbach Caroline Aylin Watson Melanie C Grant SARA-LOUISE MACGILLIVRAY Daniel Finn

📢 New ISO for Recycled Gold: Real Change or Just a Fresh Coat of Paint? A new narrative is being crafted for the gold industry, which claims to offer a comprehensive solution to the industry’s ongoing challenges, especially in defining recycled gold and unifying standards around the term "responsible." If it sounds too good to be true, that's because it is. The discussions, previously held publicly through consultations with the RJC and LBMA, have now shifted to the ISO. Don’t be misled by this change in narrative—it’s still the same stakeholders who are heavily involved in both the RJC and LBMA programs. The key difference is that stakeholders are no longer held accountable for their public positions within the ISO's framework. Instead, they are protected by acronyms like "NSB" (National Standard Body), allowing industry players, such as refiners with vested economic interests, to mask their opinions under the guise of representing an entire country. This shift enables a refinery's stance to be presented as the opinion of a nation. Moving forward, we’ll start hearing narratives like: ISO Technical Committee 174 currently has participation or observer status from 43 countries, along with several liaison organizations such as the RJC and LBMA. An overwhelming majority of experts from around the world have come together to agree on a unified definition for our industry, achieved through consensus—a goal that is currently backed by several organizations. We have implemented the ISO 14000 series of standards, widely used by companies across the globe, with a particular focus on ISO 14021. The 21261 series was finalized through a "consensus" among the experts within the working group (WG). The responsibility for assessing whether or not consensus has been reached rests entirely with the leadership. 🔔 In reality, no more than 10 “countries” National standard bodies (NSB) are actively involved in the virtual discussions, including Russia, Azerbaijan, Iran,China, and Switzerland. The bureaucratic and financial barriers for small companies to participate in these discussions are nearly insurmountable. Many National Standards Bodies (NSBs) impose significant hurdles, especially for small and medium-sized enterprises (SMEs), including those from developing countries. To address this, we are launching a fundraising campaign to raise $20,000 to create a TAG (Technical Advisory Group) with ANSI in the United States, as most SMEs are unable to afford this on their own. The situation is similar for many SMEs in Europe, where participation in international discussions can cost up to €2,800 annually. These financial barriers are effectively excluding many stakeholders, leaving the door open only to large multinational corporations. This makes the consensus process biased and opaque, as it overwhelmingly favors companies with resources to participate through multiple national bodies. https://lnkd.in/eqq3-8si #recycledgold

🚨 Key Insights from LBMA and Metals Focus: The $244 Billion "Recycled"Gold Market Breakdown 🚨 1,144 tons of gold are sourced from pawn shops, representing a market worth $87 billion (Metals Focus). 1,029 tons are sourced from unknown origins, labeled as melted recycled gold, valued at $78.4 billion (LBMA). 1,031 tons come from high-grade industrial by-products and Good Delivery bars produced after 2012, worth $78.6 billion (LBMA). Risks linked to pawn shops: Illegally sourced gold falsely labeled as recycled Stolen goods Predatory lending practices Risks associated with recycled gold bars: There is a complete lack of traceability for recycled gold bars. While pawned gold can at least be traced back to the pawn shop, the source and origin of recycled gold are often attributed to gold aggregators or intermediate refiners, making it extremely high-risk. Risks associated with sourcing gold from manufacturers or Good Delivery bars post-2012: This often involves artificially created recycled gold, where the origin is fabricated, even if the gold was mined just days before. It’s a deceptive method used to falsely claim that the gold wasn’t sourced from mines or pawn shops, while fraudulently neutralizing its entire carbon footprint. Additionally, Good Delivery bars are impossible to trace, with the origin falsely labeled as the refinery that produced them. The common issue with these sources of so-called recycled gold is the complete lack of traceability. It's baffling how any claims can be made about gold that cannot be traced. Under the law, any claim that cannot be substantiated but is used to gain an economic advantage is typically considered fraud. https://lnkd.in/ePhziVgi #recycledgold #pawnshops #carbonfraud #tracebility #accountability

🚨 Decoding the LBMA’s Latest 'Responsible' Gold Sourcing Report: New Definitions for Recycled Gold! 📢 The LBMA has introduced new definitions for recycled gold, stating that these changes are intended to support due diligence rather than product claims. I’m unclear, however, on the two-year delay in reporting. It seems likely that the time lag is to allow for the development of a narrative, as the data being presented pertains to 2022. Although there is a goal to enhance transparency and provide more detailed information about recycled gold data, the lack of clarity remains, particularly with the introduction of the term "unprocessed recycled gold." Essentially, anything that has been refined is now categorized as recycled gold, which only adds to the confusion in the market. They have misclassified industrial byproducts from jewelry and watch manufacturing as unprocessed recycled gold. UK law provides clear definitions for what qualifies as an industrial byproduct and what is considered waste, LBMA conveniently defines that only low-grade gold-containing items can be labeled as industrial byproducts. I don’t understand the rationale behind this classification. It's beneficial to have more clarity on the newly coined term "melted recycled gold," which I believe poses the highest risk in the market. This category accounts for one-third of the input for recycled gold, valued at approximately $77 billion. The definition of melted recycled gold seems to encompass anything that has been melted into basic gold bars, which I find concerning. ♻ It seems we are observing one of the most sustainable industries globally, with recycling rates reaching 64% of total gold production. This represents a 19% increase from 2021 to 2022, amounting to over 552 tons of newly fabricated recycled gold. ♻ 🚨 Where is illicitly sourced gold being processed? Is it possible that this gold is being transformed into brand-new recycled gold, exploiting the vague definitions and complete lack of traceability in the market? 👮♂️ https://lnkd.in/eHCpjUQ7 #pawnshops #recycledgold #clarity #traceability #accountability

I am truly honored to have received an invitation to the inaugural launch meeting of the Amazon Gold Working Group (AGWG) and I'm excited to actively engage in this initiative. One of the most remarkable aspects of this group is its diversity and the participants' commitment to developing realistic and practical solutions for eradicating illicit mineral extraction in the Amazon Basin while establishing legal, traceable, and responsible supply chains. A significant focus of our discussions has been to examine how illicit financial flows penetrate these remote regions through international supply chain actors and how gold sourced through these channels can be misrepresented as recycled. By gaining this understanding, we can emphasize the importance of comprehensive traceability in the gold market and advocate for standards and assurance programs that go beyond superficial "know your customer" (KYC) measures to incorporate thorough supply chain due diligence. Amazon Aid

I strongly advise jewelry manufacturers, retailers, and technology companies not to place blind trust in ISO standards for self-declared environmental claims. Instead, they should carry out comprehensive risk assessments of these claims, ensuring compliance with the local laws of the countries where they operate. While ISO standards are not required to comply with national laws during development, these local laws ultimately take precedence. However, ISO can still create standards that may conflict with local regulations. Some gold refineries that self-proclaim to process recycled gold have created an alternate reality where government regulations seemingly don't apply to them. Instead, they exploit the ISO 14000 series frameworks to make outrageous claims about their so-called recycled gold. Here are a few of these absurd claims: 1️⃣ High-grade gold production byproducts are often mislabeled as waste, allowing their entire carbon footprint to be conveniently neutralized and the origin of the gold falsely attributed to the jewelry manufacturer, even if the gold was mined or sourced from a pawn shop just days earlier (ISO 14021). 2️⃣ Additionally, they fraudulently define the functional unit being measured as the industrial byproduct, such as casting tree remnants, rather than the gold contained within these remnants. In reality, the gold refiner is purchasing the gold, not the casting tree itself (ISO 14040). 3️⃣ By applying the cutoff principle in the lifecycle assessment, they prematurely end the lifecycle of production byproducts, falsely classifying them as waste. This allows them to avoid tracing the gold beyond the point it was labeled as waste, exploiting the fact that there are no frameworks in place to track waste (ISO 14040). Some industry players selectively apply ISO standards that suit their specific needs while disregarding other ISO norms that directly contradict their claims. A new ISO standard, ISO 59014, is set to be released, which clearly defines waste and provides a precise definition of value. This new standard directly conflicts with ISO 14021. The ongoing revision of ISO 14021 has clearly been influenced by stakeholders within the gold refining industry who make self-proclaimed environmental claims. These revisions include controversial changes, such as the assertion that traceability is not required for environmental claims, and alterations to the definitions of pre-consumer and post-consumer materials, which clearly do not meet the criteria for waste. I will dive deeper into these changes, which seem to be tailored specifically to benefit the gold "recycling" industry. Self-regulation in this sector is becoming increasingly problematic. #recycledgold #pawnshops #carbonfraud #ISOmanipulation #Fraud #wastelaws

📢 Scope 3 Emissions Without Traceability? A Risky Path for the Gold Industry 📢 The gold industry is caught up in a carbon offsetting frenzy, striving for carbon neutrality. However, it’s overlooking a key element: TRACEABILITY without TRACEABILITY scope 3 emissions cannot be substantiated therefore any marketing claim is false. Claiming Scope 3 emissions reductions by artificially classifying industrial byproducts as waste, thereby neutralizing the carbon footprint and attributing the source of the gold to the manufacturer even if the gold was mined or obtained from pawn shops just a week prior is neither commendable nor advisable. It’s certainly not a practice that should be recommended for the entire industry. High-grade gold industrial byproducts worth hundreds of thousands of dollars would never end up in a landfill, nor do manufacturers intend to discard them. Yet, certain players in the gold industry are deeply invested in manipulating definitions. By labeling these valuable materials as "waste," they can avoid paying millions of dollars in carbon credits to offset their carbon footprint. True carbon neutrality comes from tackling challenges transparently, beginning with the core issue of traceability, and developing real solutions to address carbon emissions. It’s not about twisting technical definitions or avoiding the industry's real problems. #recycledgold #pawnshops #carbonscam https://lnkd.in/eJSzevQV

📢 The Silent Crisis: Technical Concerns in TC 174 WG 4 and What It Means for Responsible Sourcing 📢 Discussions for a new ISO standard that will impact the entire gold industry are underway, but there is notable misrepresentation from several key supply chain players, including civil society actors, academia, mines and small to mid-sized jewelry manufacturers and retailers even pawnshop and cash for gold representatives are missing. It is crucial that key supply chain actors engage as experts in these discussions because critical industry-wide topics are being rushed. As a representative from Colombia, I must express my deep concern and opposition to what is currently being discussed and published. I urge civil society organizations, jewelry manufacturers, retailers, and mining representatives from large, medium, small, and artisanal-scale operations to take an active role in these conversations. A small group with vested interests is defining what is responsible and what is not, as well as determining what is considered high risk. Meanwhile, primary material is being labeled as far riskier than secondary or "recycled" gold, which is often impossible to trace. If you're interested in joining these discussions, you can reach out to Petra Bischoff, the Technical Committee Manager for jewelry at ISO (Petra.Bischoff@din.de), or feel free to message me directly. I’ll gladly provide you with the necessary context, including help navigating the bureaucracy and technical jargon. You can access additional context by signing up and reading the full article posted below. "The bust-up has become so hostile, that PMIF founder Sabrina Karib says she’s had to leave a working group on the issue at the International Organisation for Standardisation, a usually staid NGO focused on developing codes of industrial and corporate best practice." https://lnkd.in/euXeTnq7

📢 Avoiding Pawnshop Stigma: Market Premiums on Artificially created Recycled Gold 📢 It seems that jewelry companies, like Pandora, are distancing themselves from associations with pawn shops and "cash for gold" schemes in their supply chains, as shown in the attached image, yet they still wish to market their products as "recycled." So, how did gold refiners address this issue and even turn it into a more profitable venture? They coined the term "industrial recycled gold" to create a distinction. What is industrial recycled gold anyway? Industrial recycled gold is artificially created by labeling a production byproduct as waste, using technical terms like "end of life" or "end of purpose." Once this byproduct is classified as waste, its lifecycle is effectively over, despite gold being one of the most valuable elements. Its traceability disappears as well—after all, who would want to trace waste? This artificial classification allows companies to falsely claim that "recycled" gold originates from jewelry manufacturers, even if the gold was newly mined or sourced from pawn shops or cash-for-gold schemes just days before. Companies are now paying premiums, like Pandora's claim of a $10 million premium, to source gold from these artificially created "recycled" sources. It's a convenient solution, allowing them to trace the origin of the gold back to the manufacturer and bypass riskier parts of the supply chain, such as cash-for-gold schemes and pawnshops. What’s even more alarming is that the entire carbon footprint of this gold is erased once it’s labeled as waste. Despite this manipulation, the process still complies with existing assurance programs and standards like RJC, LBMA, and OECD. #recycledgold #pawnshops #carbonfraud #LBMA