By investing in LBMA-certified bullion, you assure yourself of premium bullion at the purity you wanted. This assures you the MAXIMUM resale value when you sell your gold. At Mercury Gold, we sell only LBMA-certified gold
A wholesale over-the-counter market for trading gold, silver, platinum, and palladium is called the London bullion market. The Bank of England closely monitors trading amongst members of the London Bullion Market Association (LBMA).
What is the LBMA Good Delivery List?
A set of guidelines for producing gold and silver bars used in the wholesale market is known as the LBMA Good Delivery List. The London Bullion Market Association, also known as LBMA, is a global trade organization that represents the wholesale over-the-counter gold and silver bullion market. The requirements that gold and silver bars must fulfill in order to be accepted for delivery in settlements in the London bullion market are outlined in the LBMA Good Delivery List. In order to preserve integrity and confidence in the international gold and silver markets, the LBMA Good Delivery List is essential. All of the world's vaults and participants in the main international bullion markets accept bars that meet these standards.
Refineries on the Good Delivery List
There were 78 refiners of silver and 66 refiners of gold on the list as of October 2023. Refineries in North America, Europe, China, and Australia are among the global refiners on the list. The most recent details about the refineries, including a downloadable audit report, can be found on the LBMA website here.
Refineries seeking to be added to the Good Delivery List are required to pay an application fee. Before applying, refiners can test their gold and silver with testing kits they can buy. To assist refiners in understanding the requirements to be listed, the LBMA has produced a Rulebook.
What is the LBMA Committee?
Experts from prominent segments of the physical bullion market make up the committee. Its main responsibility is to manage, maintain, and protect the Good Delivery List. The committee, which meets about once a month, is focused on maintaining standards, ongoing improvement, and guaranteeing market transparency.
Members of the Loco London bullion market, Loco London meaning the gold and silver bullion that is held in London vaults and representatives from the vaults they use, are also contributors to the Vault Managers Working Group, which is constituted by the Bank of England. In order to maintain consistency throughout all London vaults, the group meets on a regular basis to discuss bar quality and vaulting procedures. Every instance of bar rejection must be documented by vault managers, and they are required to provide the LBMA Executives with relevant information.
LBMA Good Delivery List Standards
The LBMA Good Delivery List establishes rigorous standards for gold and silver bars in the wholesale market to ensure their quality, authenticity, and ethical sourcing. Here are some key components of these standards:
Refiners Accreditation
In the London bullion market, delivery of gold and silver bars is only accepted from refiners who have been approved by the LBMA. Periodically, refiners undergo re-audits to make sure they continue to meet the necessary standards.
Chain of Integrity
The LBMA's Responsible Gold Guidance, which aims to prevent conflict, combat systemic or severe human rights abuses, comply with strict anti-money laundering regulations, and combat terrorist financing practices, should be followed by the sources of the bars.
Proactive Monitoring
Bars from approved refiners are periodically inspected by the LBMA to make sure they adhere to the necessary requirements. Refiners may be taken off the Good Delivery List if there are any deviations.
Current and Former Lists
The LBMA keeps track of refiners that are currently accredited as well as those that have been removed (the "Former List"). A refiner's bar that was once on the current list but was later transferred to the former list is still considered a Good Delivery bar.
Why the Good Delivery List Matters to Investors and Wholesale Buyers
The Good Delivery List is a benchmark of quality and trust in the bullion market. For investors, it assures that they are dealing with products of the highest standard in terms of quality, ethical sourcing, and overall market integrity.
Trust and Assurance: Investors can feel secure in the authenticity, excellence, and purity of their investment when they are aware that a gold or silver bar satisfies the LBMA's Good Delivery requirements.
Liquidity: In the main international markets, bars on the Good Delivery List are widely acknowledged. This makes transactions easier and more effective because they can be traded or sold without the need for additional assays or checks.
Consistency: The standards guarantee that every bar fulfills a uniform standard of quality and specification, irrespective of the refiner from which it originates. When transacting in international markets, this consistency is essential.
Ethical Considerations: The LBMA's standards guarantee that the gold or silver has been sourced ethically, especially in relation to the chain of integrity. The Good Delivery List offers some assurance in this area, as ethical considerations are becoming more and more important to investors when making investment decisions.
Protection Against Counterfeits: The strict criteria refiners must meet in order to be added to and remain on the Good Delivery List lower the possibility of fake bars making their way onto the market. This provides investors with an additional level of security against possible fraud.
Market Integrity and Transparency: Investor confidence is further bolstered by the LBMA and its committees' constant oversight and monitoring of the market, which guarantees a high level of integrity and transparency.
Record Keeping: The requirement that any bar rejection be recorded adds another degree of accountability to the system. For investors who wish to comprehend the larger picture of bar quality and possible problems, this can be extremely important.
In the bullion market, the Good Delivery List is the benchmark for reliability and quality. It ensures that investors are dealing with goods that represent the pinnacle of excellence, ethical sourcing, and unwavering market credibility.