Ensuring Transparency and Trust in Gold Supply Chains
Our collaboration with Argor-Heraeus helps prevent fraud in the gold supply chain, addressing the challenges posed by its complex sourcing structure and the product’s high value.
About Argor Heraeus
Argor-Heraeus is a Swiss-based precious metals refinery that belongs to the German-based Heraeus Precious Metals. With a strong position in the value chain, it offers services in investment products, luxury sectors, and precious metals trading, supporting clients globally with high-quality solutions.
The Challenge
- Sourcing risks: Lack of raceability links gold to illegal mining, human rights abuses, and armed conflicts, especially in politically unstable regions.
- Environmental impact: Illegal gold mining causes severe ecological harm, including deforestation and mercury pollution, posing long-term health and environmental risks.
Failure to meet regulatory standards can lead to heavy fines, market bans and severe reputational damage. Companies must adhere to strict international regulations, such as:
- OECD due diligence guidance for responsible supply chains.
- U.S. Dodd-Frank Act (section 1502) requiring conflict mineral disclosures.
- EU conflict minerals regulations (2017/821) mandating due diligence for gold importers.
The Solution
The technology involves applying a unique DNA marker directly onto rough gold bars at the mine, following a strict protocol. This marker ensures a secure link between the gold and its source, preventing mixing with illicit gold during transport or processing. The doré gold bars containing 99.9% gold are shipped to Switzerland for refining. Upon arrival at the Argor-Heraeus refinery, the DNA markers are tested to confirm the gold’s provenance, ensuring it comes from the selected mines and ethical sources.
Once the source is verified, the traceable gold bars undergo refinement on a dedicated production line, ensuring the highest standards of quality and integrity.
The Results
Thanks to the unique DNA marker, Argor-Heraeus enables clients, such as Zürcher Kantonal Bank and LGT, to sell traceable gold:
- Proof of origin: Ensures the gold comes from carefilly selected and ethical sources.
- Transparent supply chain: Provides verifiable data at every step of the process.
- Responsible handling: Guarantees the gold is managed solely by responsible partners.
- Meets demand standards: Aligns with the highest industry expectations.
- Built trust: Fosters confidence for both partners and clients.
- Industry trends: More and more gold traders are interested in paying a premium for traceable gold.
