Gunvor expands its precious metals trading into physical trading
Gunvor, a global commodity trading company, has announced that it is expanding its precious-metals business beyond trading derivatives to include physical metal. The company also revealed that it has hired experts in London and Singapore's trading hubs. Gunvor's growth in this sector coincides with an upswing that has seen the gold price double since late 2022, as investors sought refuge from geopolitical and economic turmoil. On Tuesday, spot gold reached a new record of $3674 per troy-ounce. GOL/
The World Gold Council's data from 2018 shows that the global gold market traded $329 billion per day on average in the first half 2025. This is the highest semi-annual volume since 2018.
We are developing the entire value chain, from gold and silver concentrats to refined bars. Gunvor's head of corporate affairs, Seth Pietras said that the team was forming with several key traders already in place.
Gunvor, a privately owned company, is primarily engaged in energy trading. Liquefied natural gases are the primary source of profit. The group trades precious metals derivatives, but not actual metal.
Jonny Duncan is the latest hire. He was previously a precious-metals sales manager at ICBC Standard Bank. This is one of the top bullion banks. He joined the trading firm in London last month.
Pietras stated that the precious metals division has expanded over the past year, since Oliver Martin joined Gunvor as a senior precious-metals trader from mining giant Anglo American. Pietras did not reveal the size of the entire team.
He said that the rapid growth of this market was due to our ability, globally and in South Africa, to leverage existing sourcing relations. However, he did not disclose revenue from precious metals. Gunvor's net profit for the first half of 2014 fell 71% on an annual basis to $121m due to oil surplus, increased competition and thin margins. Others have also been expanding their precious-metal businesses. A subsidiary of the Japanese trading house Mitsui & Co. hired a gold specialist in early this year, while French bank Societe Generale plans to make a partial return to gold trading following its withdrawal from the bullion markets last year.
Gregory Frith, who was previously on StoneX’s precious metals desk, is leading Gunvor's growing physical bullion sales from London. Pietras claimed that he had "relationships with refineries and end-buyers". ".
London is the largest gold trading hub in the world. Market players trade directly, rather than through an exchange. Bullion banks such as HSBC Standard Bank, ICBC Standard Bank, and JP Morgan dominate this sector.
Singapore is one of the major trading centres for precious metals in Asia, and Switzerland, where Gunvor has its headquarters, is also the largest bullion refinery and transit hub. (Reporting and editing by Veronica Brown, Emelia Sithole Matarise and Polina Devitt)
(source: Reuters)