The Gold Marketing Chain in Suriname - WWF, Abu Dhabi unveil ...

The Central Bank of Suriname does not sample, assay, determine the purity, or weight the gold
mined by Iam Gold. This large‐scale mining multinational performs all these measures in its own
lab.
Another function of the CBvS with regard to gold marketing is the sale of gold to jewelers and
gold smiths for the fabrication of jewelry. In fact, the law dictates that gold may only be bought
from the Central Bank.
Prior to the year 2000, part of the gold that the Central Bank bought from entrepreneurs in the
mining industry was sold to jewelers. Since 2000, the CBvS only sells Suriname gold that has
been abroad 27 to be purified to 24 K. The availability of 24 k gold was on the special request of
goldsmiths. Gold for sale to goldsmiths is sold in granules (grains, or grenailles), which makes it
easier to purchase a certain weight of gold. These granules have been especially fabricated in
the Royal Canadian Mint (in Canada), using the gold supply that this institution holds in
consignment for the CBvS. Hence the granules are Suriname gold, which has been abroad for
purification. In 2000, after deciding to sell gold in this form, a considerable supply of 24 K
granules was prepared and kept by the Central Bank. Gold that jewelers buy today is still from
this 2000 supply, from which about 50‐60 kg is left.
Regardless of what the law prescribes, our survey data show that the CBvS is not the most
popular place to buy gold. When asked how often they go to the CBvS to buy gold, 82.8 percent
of surveyed jewelers answered that they never go to this institution; 6.9 percent said they buy
monthly, another 6.9 percent buys four times a year, and yet another 6.9 percent buys no more
than once or twice a year. An official from the Central Bank noted that lately many Chinese
businessmen have been at the gold purchasing desk to buy gold. He suspects that these people
are speculating with the gold, profiting from the fact that the CBvS maintains an exchange rate
of 2.80 SRD for 1 USD (the street value of the USD has risen to above 3.35 SRD/US dollar).
Other than controlling gold for export and offering gold for sale to jewelers, the role of the
Central Bank in the gold market is minimal. According to the exporters’ license, the CBvS has
the right to buy 5% of the export against world market prices. To date it has never made use of
this right.
27 To Royal Canadian Mint in Ottowa, Canada.
32