Gold is a chemical element and precious metal with the symbol Au. Demand and use for gold is typically split into three segments; investment, jewellery and industrial. Consumption of new gold produced is about 50% in jewellery, 40% in investments, and 10% in industry. Gold is considered by many to be a store of real value, where in times of economic uncertainty the price of gold typically increases in value as investors seek safe haven investments.
Gold is typically recovered from an ore body through comminution, mineral processing, hydrometallurgical, and pyrometallurgical processes. Once the gold is recovered it is smelted into ingots and shipped to a gold refinery. Typically gold mining companies ship their gold to approved “London Good” gold refineries accredited by the London Bullion Market Association (LBMA) www.lbma.org.uk. The gold refinery then pays the mining company for the gold that is refined. London is home to the international pricing of gold. LBMA gold auctions take place in London on a daily basis. LBMA prices are internationally regarded as the pricing mechanism for gold.
The LBMA gold price auction takes place twice daily by ICE Benchmark Administration (IBA) at 10:30 and 15:00 with the price set in US dollars per fine troy ounce.