[LONDON] Global commodity trading house Gunvor is expanding its precious metals business from trading derivatives into physical metal and has hired specialists in the London and Singapore trading hubs, the company told Reuters.
Gunvor’s expansion in the sector coincides with a rally that has seen gold prices rise twofold since late 2022, as investors sought shelter from global economic and geopolitical turbulence. Spot gold hit a record high of US$3,674 per troy ounce on Tuesday (Sep 9).
Global gold market trading volumes averaged US$329 billion a day in the first half of 2025, the highest semi-annual value in World Gold Council data going back to 2018.
“We are developing the full value chain from gold and silver concentrates to refined bars,” said Seth Pietras, head of corporate affairs at Gunvor. “The team is coming together with several key traders in place now.”
Derivatives to metal
The core activity at privately owned Gunvor is energy trading, with liquefied natural gas being the main profit contributor. The group has been trading precious metals derivatives, but not physical metal.
The latest hire is Jonny Duncan, previously a precious metals sales manager at ICBC Standard Bank, one of the leading bullion banks. He joined the trading house in London this month.
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Pietras said the precious metals business has been expanding over the last year since Oliver Martin, formerly a senior precious metals trader at mining giant Anglo American, joined Gunvor in Singapore. He did not disclose the total size of the team.
“Our quick growth in this market has resulted from our ability to leverage existing sourcing relationships globally, especially in South Africa,” said Pietras, without disclosing revenue from the precious metals business.
Gunvor’s first-half net profit fell 71 per cent year on year US$121 million due to oil oversupply, increased competition, fewer arbitrage opportunities and thin margins.
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Other players have been expanding their precious metal businesses, too. A subsidiary of major Japanese trading house Mitsui & Co hired a specialist earlier this year, while French bank Societe Generale is planning a partial comeback to gold trading after quitting the bullion market in 2019.
Gunvor’s developing physical bullion business is led from London by Gregory Frith, formerly on StoneX’s precious metals sales desk. Pietras said Frith brought wealth of “relationships in the refinery and end-buyer markets”.
London is home to the world’s largest over-the-counter gold trading hub, where market players trade directly with each other rather than via an exchange. This sector is dominated by bullion banks including HSBC, ICBC Standard Bank and JP Morgan.
Singapore is a major precious metals trading centre for Asian clients, while Switzerland – where Gunvor is based – is the world’s biggest bullion refining and transit hub.
