The Golden Route: The Landscape for Secure Logistics of Precious Metals
The Golden Route: Innovations in Secure Logistics for Precious Metals
Looking ahead to World Gold Day on 20th October and with the Ava team preparing to attend the LBMA Global Precious Metals Conference in Miami, it seems a good time to delve into the ever-changing world of precious metals logistics.
Over the last few years, Ava has been working to prove there is a better way to provide secure, global logistics to the precious metals sector. Businesses like ours have a vital role to play in maintaining the integrity of the gold and precious metals markets, and we all need to stay abreast of changes to the physical infrastructure of transportation as vehicles become more specialised and storage facilities more advanced.
The landscape of precious metals transportation is shifting, shaped by rising demand, industry developments, and an increasing focus on green energy and transparent supply chains.
Technology is developing apace, with digital twinning of physical products and impressive tracking capabilities. Innovations in the spheres of blockchain, digital tracking, and supply chain management systems are now much more prevalent in the logistics of precious metals. These technologies enhance transparency and traceability, reduce the risk of fraud, and ensure that metals are ethically sourced and handled.
At Ava, we understand the complexities of moving precious metals onwards from refineries to bullion banks and traders, as well as pre-refined metals from mines to refineries.
Key players in the modern world of precious metals
China
China is the world’s biggest bullion consumer but is also globally important as a producer and refiner of gold and a key manufacturer of machinery, equipment and materials within the mining and processing sectors. Driven by the Belt and Road Initiative, major Chinese producers are continuing to invest in domestic and overseas mines, utilising both domestic and international refiners to bring the gold to market. This creates exciting new logistics opportunities within the region and globally.
Hong Kong’s location makes it a key transfer point for the precious metal trade and it is a popular location for gold imports due to the lack of import duty and the low customs declaration fees. Ava is there to manage the complex coordination between secure vaulting services and high-security transport.
India
India has been one of the world’s largest consumers of gold and silver for centuries. In recent years, the country’s logistics networks for precious metals have become highly regulated as the jewellery sector became more organised, creating a standardised and transparent approach for retailers, and influencing regulation and compliance.
Decreases in duties and taxes of gold and silver have generated a renewed momentum in the Indian market, and a reduced import duty on silver from Dubai through the Gift City Exchange has resulted in Dubai becoming the major supplier of silver.
Satish Pai (Ava Business Development Manager- India) and Stefan Dingeldein (Ava Sales & Marketing Director) recently attended the India Gold Conference. Stefan said:, “It was great to witness renewed positivity in the Indian market … there is a sense of confidence among suppliers and importers.”
Australia
As a major producer of gold and other precious metals, the global push for green energy is reshaping Australia’s metals market by causing a surge in demand for key materials, adding complexity to logistics.
Australia has large reserves of ‘critical’ minerals, such as lithium, nickel, cobalt and silicon. It is facing the challenge of managing increased production demand with the high fossil fuel emissions created by mining. Many lower carbon initiatives still require some input from metals mined using fossil fuels, such as lithium-ion batteries for electric vehicles.
Climate Change, Sustainability and Green Energy
The effects of climate change on the world around us can be seen on the news every week - whether it’s flooding, wildfires, or an increase in the frequency or severity of tropical storms. Issues such as these and other natural disasters can have a dramatic impact on local infrastructure and logistics.
That’s why logistics companies need to be resilient, flexible and adaptable: if roads are impassable or flights are grounded, do they have alternative methods of transportation to ensure your cargo can get through?
The global shift towards green energy is having profound implications on the precious metals supply chain, from what is actually mined, to how metals are mined, and the delivery logistics for each step of the process. ESG (Environmental, Social, Governance) risks affecting the precious metals trade include:
- Tailings and waste management
- Biodiversity
- Production methods
- Transportation
- Attaining net zero status
As carbon-aware transportation options become critical, the sector is looking towards low-carbon alternatives and the potential of circular supply chains.
Ava’s independence is environmentally positive as we are not tied down to old or unsuitable assets which won’t offer our clients the cleanest option for transportation. It also means that we can focus on route optimisation as we will tailor each delivery via the most suitable route.
Ava’s Customer Experience Platform plays a role in sustainability through its dedicated Shipment Insights page.
This gives you access to your data on a per-shipment basis, and can be collated with past and present shipments. The data can be broken down however you wish and is presented in a clear format, using colour-coding and easy-to-read graphs and bar charts.
Responsible Logistics
In an industry such as ours, trust is the biggest factor, and reputable companies are members of bodies such as the LBMA, LPPM and IPMI. Ava is also a member of trueGold (ensuring data integrity and product transparency throughout the entire value chain), The Silver Institute, and aXedras, whose end-to-end ethical gold supply chain technology, backed by non-destructive testing and blockchain technology, is game-changing.
Earlier this year, our Global Head of Mining, Julien Tardy, attended the OECD-OCDE Forum on Responsible Mineral Supply Chains. Julien said:, "The OECD Forum was once again a fantastic platform for highlighting the various initiatives by industry players to achieve sustainable supply chains. We had in-depth discussions on how to support artisanal and small-scale miners in their journey towards formalisation, providing the technical assistance they need, and improving their access to markets through innovative secure logistics solutions. While there is still a long way to go, the framework is set and the commitment is evident.”
Ava’s Independence = Agility
Expert planning and robust risk management strategies are essential when transporting precious metals to and through international logistics hubs, from one country to another, and potentially from high risk or remote locations.
Ava’s approach is to tailor every journey to suit your unique requirements.
We are able to do this because of our asset-free structure. We don’t own an ageing vehicle fleet or storage facilities, a great advantage as this means we aren’t tied down or limited by infrastructure. We can remain agile and always find the best solution by creating bespoke logistics systems and investing in our trusted international partners at a local level.
This independence empowers us to form strategic partnerships wherever we work, whilst contributing to local economies and communities. We are tenacious in overcoming barriers, delivering your high-value cargo whatever geopolitical or territorial factors are at play, but never compromising on our ethics.
Conclusion
As the global demand for precious metals continues to rise, the logistics sector faces not only an increasing pressure for speed and reliability, but also new challenges driven by sustainability and green energy initiatives.
The evolving roles of key markets like China, India and Australia are reshaping supply chains, while advancements in digital technology and responsible mining practices are setting new standards for transparency and efficiency.
Ava is proud to be a growing part of this ever-evolving sector, and at the forefront of an exciting period of development towards a higher standard of precious metal logistics.
Ava is genuinely global. Covering six continents and with regional offices in New York, Miami, Buenos Aires, London, Vienna, Frankfurt, Dubai, Hong Kong, Perth and Mumbai, there is no destination too far. Get in touch with your local expert to discuss your precious metals logistics requirements.
