Jeweller - May 2021

Reset & Refine | CASTING AND REFINING FEATURE
Silver’s supply is also
expected to increase,
however growing
demand from investors
is expected to push its
price higher”
Left: ABC Bullion
As restrictions on production – due to COVID-19 – are
gradually removed, silver’s supply is also expected to
increase, however growing demand from investors is
expected to push its price higher.
Other precious metals are also being affected.
According to Platinum Guild International, US platinum
unit sales saw a 14 per cent increase in Q4 2020,
compared with Q4 2019.
Likewise, China saw a 14 per cent increase of platinum
jewellery fabrication over the previous year for the same
period. A global oversupply of the metal, largely due
to the decline of car manufacturing, has also kept its
prices low.
Platinum’s higher margins – and the ability to drive
incremental sales for jewellers – makes platinum
products an effective value-add for many retailers.
US platinum unit sales saw a 14
per cent increase in Q4 2020,
compared with Q4 2019. Likewise,
China saw a 14 per cent increase
of platinum jewellery fabrication
over the previous year”
Palladium, on the other hand, has skyrocketed in price,
nearly doubling from its March 2020 low, owing to its
application in reducing the carbon emissions of fossil
fuel engines.
Post-COVID, as the market begins to become more
predictable, some in the industry are beginning to see a
return to normalcy.
According to Darren Sher, director Chemgold, demand
for refining services is beginning to stabilise.
“Whilst there was a huge spike at the beginning of the
pandemic and overall increased demand for majority of
2020, we have found that the demand has stabilised in
the last three to six months,” Sher said.
“We have found an increasing amount of our clients
are after their return as fabricated alloys or Chemgoldbranded
bullion.”
INDUSTRY INSIGHTS
Notable Trends
We’re experiencing gold
and other precious metals
showing extreme highs
followed by price contractions
within a relatively short
period of time”
Peter Beck
Peter W Beck
The combination of
precious metal prices
and COVID-19’s effects
on business, particularly
within the jewellery
industry, has significantly
increased the demand for
Palloys’ refining services”
Chris Botha
Palloys
Whilst there was a huge
spike at the beginning of
the pandemic and overall
increased demand for
majority of 2020, we have
found that the demand
has stabilised in the last
three to six months”
Darren Sher
Chemgold
Additionally, this highly uncertain environment has
shown the importance of recovering as much waste
as possible. Adam Van Sambeek, treasury manager
Morris & Watson, said this is critical even during the
best of times.
“[Morris & Watson] not having a minimum refining
quantity removes a barrier for the need for frequent
turnover of precious waste. Customers tend to regularly
recycle their lemel and waste back into cash or reusable
semi-fabricated metal, partially offsetting metal cost in a
rising market,” he explains.
At Pallion, Botha says, “ABC Refinery is Australia’s only
independent London Bullion Market Association (LBMA),
Shanghai Gold Exchange (SGE) and COMEX [part of the
New York Commodity Exchange]-accredited refinery.
“Our ABC Refinery accreditations and reputation of a
high-quality service has enabled us to increase our
market share to 30 per cent of gold and 70 per cent for
silver in the Australian market.
“We are now refining 100 tonnes of gold and more than
500 tonnes of silver per annum.”
As the major refiner for Australian mines, The Perth Mint
is the only refinery to be fully accredited for both gold
and silver with the LBMA, and is also accredited by SGE,
COMEX, the Tokyo Commodity Exchange (TOCOM) and
Dubai Multi Commodities Centre (DMCC).
Old science, new technology
Whatever new demands are placed on the industry, there
are some factors that are simply impossible to change.
Says Hayes, “While a number of ‘new’ refining
technologies marketed today show good promise, there
still remain drawbacks.
“For example, one such process is unable to remove
copper from ore, necessitating a secondary refining
process, negating some environmental benefit claims.
However, some of these technologies will undoubtedly
evolve into sustainable future solutions.”
Beck explains, “Gold, silver, platinum and palladium
refining, and the techniques used revolve around
electrowinning and chemistry. Electrowinning and its
behaviour are governed by the laws of physics, chemistry
is likewise governed by the laws of chemistry.”
33 | May 2021