Precious Metals Business Expansion

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Exclusive-Gunvor expands precious metals business into physical trading
Yahoo Financeยท 2025-09-12 12:00
Core Viewpoint - Gunvor is expanding its precious metals business from trading derivatives to physical metal, hiring specialists in London and Singapore amid a significant rise in gold prices since late 2022 [1][3]. Group 1: Business Expansion - Gunvor is developing the full value chain from gold and silver concentrates to refined bars, with key traders already in place [2]. - The company has been trading precious metals derivatives but is now moving into physical metal trading [3]. - The precious metals business has been growing over the past year, particularly after hiring Oliver Martin from Anglo American in Singapore [4]. Group 2: Market Context - Gold prices have doubled since late 2022, with spot gold reaching a record high of $3,674 per troy ounce [1]. - Global gold market trading volumes averaged $329 billion a day in the first half of 2025, marking the highest semi-annual value since 2018 [1]. Group 3: Financial Performance - Gunvor's net profit for the first half fell 71% year-on-year to $121 million due to oil oversupply and increased competition [5]. Group 4: Competitive Landscape - Other companies, such as Mitsui & Co and Societe Generale, are also expanding their precious metals businesses, indicating a competitive market [5]. - Gunvor's physical bullion business is led by Gregory Frith, who has extensive relationships in the refinery and end-buyer markets [6].