Looking to reinforce its balance sheet, the London Bullion Market Association increased membership fees and rolled out a way for members to settle dues two years in advance. The group is also assessing how to generate additional income by charging for use of its Good Delivery List covering refiners. That list is already licensed, and the LBMA says the charge is low relative to what other trade bodies ask for comparable products.
Futures exchanges, including those run by CME Group Inc., lean on the Good Delivery List to decide which refiners can deliver metal into their contracts. The association says a brand-new gold clearing platform in Hong Kong intends to rely on the list as well.
At a press briefing held during the LBMA conference in Sorrento, Italy, Chief Executive Officer Ruth Crowell outlined the steps to journalists. "For us to continue and grow our mandate, we need resources to do that," she said. She added that membership and licensing together account for roughly 50% of the organization's income, and that the Good Delivery List license is priced below similar offerings from other associations.
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A lawsuit brought by relatives of two men who died in 2019 at Tanzania's North Mara gold mine is scheduled to begin in London on Wednesday, with the LBMA facing the claim. The association rejects the allegation and says it is confident it will defeat it in court. The numbers show why the stakes are high: the latest accounts list about £1.4 million ($1.9 million) in reserves at the end of 2025, £2.4 million spent on legal fees last year, and potential exposure to £3 million of the claimants' costs if it loses.
Beyond the court fight, Crowell urged the Financial Action Task Force to implement more consistent reporting related to precious metal laundering. She said the FATF's grey list has prompted constructive responses, noting, "We've seen the positive impact that it's had on centers when they've been grey-listed and they were mentioned in terms of the reforms that have taken place, and we see that could be something that can make meaningful change that brings other actors to the table." For your wallet, the angle is straightforward: if the LBMA shifts how it funds itself or how the Good Delivery List is used, anything tied to refinery eligibility or market plumbing could feel the ripple. Watch the trial timeline and any updates to licensing.
Legal pressure on the gold trade is turning into a budget problem. Get the free Market Briefs daily newsletter and follow the case.
