The Global Markets division is Rand Refinery’s central hub for customer relationship management and the tactical marketing and sales of Rand Refinery’s entire range of precious metals products to diverse entities based in many different parts of the globe. The team provides a range of services to local and foreign banks as well as foreign bullion banks, local and foreign jewellery manufacturers, exchange traded funds (ETFs) clients and many classes of direct investors in finished gold products. In addition, this division also provides limited treasury services to the smaller mines and facilitates their gold sales.

The different services Global Markets provides to its customers - both internal and external -include:

• the financial and accounting management that is required to track customer’s metal ownership through the production and sales processes.
  Confirmations are sent out on a monthly basis to afford our customers the opportunity of confirming that our records are correct. While gold ETFs are not sold by Rand Refinery, we are currently the only custodian of the South African ETF, Newgold (ABSA), and manage the account for ABSA in terms of gold holdings.
  
  
• the invoicing of customers for refining and smelting services and sales.
  
  
• gold storage in both allocated and un-allocated metal accounts on behalf of purchasing customers.
  
  
• the daily sales of precious metals and the dissemination of proceeds. As part of that process, Global Markets executes all trading, funding, investment and conversion transactions. This includes all foreign exchange and money market transactions and includes any possible hedging transactions.
  
  
• facilitating exports of precious metals, including shipment logistics.
  
  
• twice daily gold pricing in randterms for local sales.
  
  
• developing new products for the jewellery manufacturing industry to satisfy end-user demand both for the local and international market.
  
  
• internally, Global Markets provides a treasury and corporate financial function to Rand Refinery as well as providing crucial input into the overall financial risk management process of the company as a whole.

As Rand Refinery is highly sensitive to the dollar/rand exchange rate and precious metal price variation, the need to watch the volatility of our metal gains and currency-based revenue streams is vital. When appropriate, Rand Refinery uses sophisticated hedging techniques to manage these risks in both exchange rates, interest rates and precious metals prices. 

Through our Structured Financial Products, we aim to limit the price risk of customers by allowing fixed price and volume contracts price risk to be managed by Rand Refinery, thus limiting the customers exposure to these variables, where permitted.

Rand Refinery is aware that ‘availability buys affinity’. For this reason, Rand Refinery is in the process of investigating the possibility of making available consignment gold in the active gold purchasing markets.

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