Kimberley model Gold certification is still far away
However, they said gold business in Switzerland is very nontransparent as Swiss trade statistics do not tell you where the gold comes from that is imported to Switzerland.
Demand for formulating a certification scheme to ensure clean gold remained unanswered despite increase in mine violations across the world, particularly in Africa.
Many experts are calling for a Kimberley certification like body to ensure gold are bought only from registered sources not connected with conflict.
However, there seems to be no cordiantion among various gold dealers to enact such a system for gold, they added.
Though some organizations like London Bullion Market Association's Responsible Gold Guidance (LBMA) are already working to combat systematic or widespread abuses of human rights, to avoid contributing to conflict, to comply with high standards of anti-money laundering and combating terrorist financing practice in the gold sector.
The process for approving a new refinery takes a lot of time under this system as it takes on average three months of checking before any refinery will go into business with a new gold mine.
The system needs to understand where is the material coming from, how are they dealing with the people around them, how are they with the environment, are they respecting all the laws and so on.
As the global economic crisis continues, there is a rush on gold, as it is increasingly regarded as one of the only safe commodities around.
This also increases chances of illegal gold coming into market. Experts said the regulations to fight unclean gold may not work properly unless major refiners act accordingly.
Four of the world's biggest gold refineries are in Switzerland and it is estimated that two-thirds of the world's gold is refined in Switzerland.
Switzerland itself needs to be more open about an industry which is so important on its territory.
However, gold business in Switzerland is very nontransparent as Swiss trade statistics do not tell you where the gold comes from that is imported to Switzerland, analysts said.
Any changes in Swiss law are likely to be a long way off and only after a change in Swiss law, setting up of a Kimberley model certification for gold is possible, they added.
From : Google
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