LBMA Good Delivery

What LBMA Good Delivery means

The LBMA is the trade body of the London wholesale gold and silver market. Its Good Delivery rules set what a bar must look like to be accepted between banks: a gold bar of roughly 350 to 430 troy ounces with fineness of at least 995, and a silver bar of roughly 750 to 1,100 ounces with fineness of at least 999. Each bar carries the refiner's mark, a serial number, fineness and year of manufacture.

Only refiners on the Good Delivery List may produce these bars. To stay on the list they pass regular testing and responsible sourcing audits. That is why "LBMA-accredited refiner" on a small bar is a useful quality signal, even though a 1 oz bar is not itself a Good Delivery bar.

LBMA and the US market

American buyers deal with LBMA standards in three ways:

• Price. The LBMA Gold Price is set by auction twice each London business day and published in US dollars. Many contracts, funds and dealer buyback agreements refer to it.
• Futures. COMEX in New York uses its own list of approved brands and a 100 oz bar for gold futures, but the minimum fineness of 995 matches the LBMA. Many refiners are on both lists.
• IRAs. IRA custodians accept bullion that meets futures market fineness, so bars from LBMA or COMEX-approved refiners are the usual choice. See fineness.

Example: why brand matters when you sell

Two 10 oz silver bars contain the same metal. One comes from a refiner on the LBMA list with a stamped serial number; the other is an unbranded poured bar. A dealer will usually pay a better bid for the branded bar because it needs no assay, so the spread you face is smaller.

How to use this when buying

• When you compare 1 oz gold bar prices, check that the refiner is accredited.
• For larger sizes, the 1 kg gold bar comparison shows bars close to wholesale standards.
• The spot price you see is close to the London and COMEX wholesale price, before any retail premium.