What makes a Good Delivery Bar?
Good Delivery bars are notable for their large size and high purity and are usually used in the major international markets such as London, New York, Tokyo, Hong Kong, Sydney and Zurich as well as in the gold reserves of governments, central banks and the IMF.
Good Delivery bars adhere to a set of rules issued by the London Bullion Market Association (LBMA) describing the physical characteristics of gold and silver bars used in settlement in the wholesale London bullion market. Only bars that meet the Good Delivery standards of the LMBA are acceptable. The LBMA benchmarks and regulates the requirements for large gold and silver bars through the London Good Delivery Lists which are updated regularly. These standards -which are recognised throughout the world – ensure that standards are maintained by global refiners.
To be categorised on the list, there is a set of criteria that must be adhered to. The requirements include a minimum level of production and tangible net worth, with a rigorous technical assessment to review casting, refining and assaying abilities.
The LBMA’s Good Delivery Rules describe the specifications for gold and silver Good Delivery bars. These stipulations include the acceptable fine ounce weight, purity, physical appearance such as the surface quality and noticeability of markings. They are generally between 11 and 13 kg for gold and 23 and 34kg for silver, demanding a lot of attention when cast and stored.
Accredited refiners are subject to rigorous testing under the LBMA’s Proactive Monitoring Programme Those who no longer meet the minimum standards or decide to stop producing Good Delivery bars, are transferred to the LMBA standard lists for Gold and Silver.
The standards refiners need to meet include; to be in existence for more than five years and to be involved in refining operations of the metal it is applying no less than three years prior to the application. The refiner must have an established annual refining production of more than 10 tonnes (for gold) or 50 tonnes (for silver). The refiners need a net worth of £15 million and must be financially standing and if applying for gold they must have implemented the LBMA Responsible Gold Guidance prior to accreditation.
There are currently 70 refiners on the Good Delivery List for gold and 81 for silver. Those responsible for deciding who is on the list are industry experts who form a committee. The committee monitors, develops and protects the Good Delivery List and ensures standards are maintained with a focus on transparency and development. The group works closely with the LMBA referees who are chosen to assist the maintenance of the Good Delivery System via the technical assessment of applicants for listing, the proactive monitoring of refiners on the List and the provision of technical advice on a range of topics.
The group meets every month throughout the year and the referees who attend quarterly meetings at the LBMA are represented by: Argor-Heraeus SA, Metalor Technologies SA, PAMP SA, Rand Refinery (PTY) Ltd and Tanaka Kikinzoku Kogyo.
Contact the team for your Good Delivery Bar purchase; we’ll be happy to help and advise you.