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Responsible Sourcing & Quality Gold: Dubai Multi Commodities Centre (DMCC)

In today's globalized world, consumers are increasingly concerned about the ethical sourcing of the products they purchase. This extends to precious metals like gold, where the risk of conflict minerals entering the supply chain exists. To address this concern, the Organisation for Economic Co-operation and Development (OECD) has established guidelines for responsible supply chain management.

The Dubai Multi Commodities Centre (DMCC) plays a crucial role in supporting these guidelines. Here's how:

Alignment with OECD Principles: DMCC's own guidance for responsible sourcing aligns with the OECD's 5-step risk management framework. This framework encourages a collaborative approach throughout the supply chain, ensuring all participants are actively monitoring potential risks.

Transparency and Traceability: DMCC emphasizes transparency and traceability within the gold and precious metals trade. This allows for better identification of potential conflict minerals and ensures consumers can have confidence in the ethical sourcing of their purchases.

Training and Support: DMCC recognizes the importance of education. They offer regular training sessions to their members, helping them understand and implement the OECD guidelines with minimal disruption to their businesses.

Beyond Responsible Sourcing: Dubai Good Delivery (DGD) Sets the Standard for Quality

While ensuring ethical sourcing is crucial, DMCC goes a step further with the Dubai Good Delivery (DGD) standard. Developed in 2005, DGD is an international benchmark for quality and technical specifications in the production of gold and silver. This standard:

• Increases industry confidence: By establishing clear quality parameters, DGD fosters trust within the gold and precious metals trade.
• Creates trade finance opportunities: Financial institutions can confidently base trade financing decisions on the assured quality of DGD-certified bars.
• Provides technical robustness: DGD aligns with globally accepted best practices, ensuring the highest quality standards are met.

The DGD standard specifies:

• Gold bars: 1kg weight with a minimum purity of 99.5%
• Silver bars: Weights ranging from 900 to 110 ounces with a minimum purity of 99.9%

Benefits of DMCC's Commitment to Quality and Responsible Sourcing

By actively supporting the OECD guidelines and implementing the DGD standard, DMCC contributes to a more responsible and ethical gold and precious metals industry. This fosters trust within the market and benefits all stakeholders:

• Enhanced Reputation: Companies operating within the DMCC Free Zone can leverage their association with a responsible, ethical, and high-quality trading environment.
• Reduced Risk: Adherence to both guidelines minimizes the risk of sourcing conflict minerals and ensures high-quality products, avoiding reputational damage and legal issues.
• Sustainable Growth: Responsible sourcing practices and quality standards contribute to a more sustainable gold and precious metals industry, ensuring its long-term viability.

Partnering with DMCC for Success