A fresh thrust in the gold market from Dubai and Istanbul

LONDON --The burgeoning gold industry in the Middle East took another step forward in early March with the admission of the Istanbul Gold Refinery into the Dubai Metals and Commodities’ Centre (DMCC)’s good delivery list. The listing, which is broadly fungible with London Good Delivery in terms of the specifications that apply to the brands, now encompasses 24 international firms with respect to gold and silver refining, allowing them to trade gold or silver for delivery against futures contracts on the Dubai Gold and Commodities Exchange. The Dubai Good Delivery standard (DGD) was introduced in 2005 with the intent to promote international standards and increase confidence in the local and regional trade, as well as providing the delivery standard for the Exchange. The Istanbul Gold Refinery, which produces kilobars, is the first Turkish refinery to be awarded DMCC good delivery listing. In order to qualify for admission to the Dubai Good Delivery List, a refinery must meet the following criteria: Have produced a minimum of ten tonnes of refined gold during the previous year in small bar form (i.e. kilo bars or smaller); Have a minimum total net worth of US$10 million. There are two categories of membership. Category one, in addition to the first two criteria, must also currently hold London Good Delivery status for its 400-ounce large gold bar production Or, for category two (refineries not currently on the LBMA Good Delivery List and whose brands do not hold London Good Delivery status): Agree to an initial and thereafter regular independent third party testing of its gold bar production and submit the necessary documentation with respect to record keeping requirements and provide third part references as required by DMCC.