As a hub of information on Physical Bullion we thought it crucial to produce an article on the LBMA (London Bullion Market Association) as an organisation, the good delivery list and how this should be affecting your purchasing decisions. Many people, including our competitors, are getting these facts wrong and in some cases INCORRECTLY ADVERTISING UNCERTIFIED BULLION. In today’s article we answer the question: Is it important that your bullion products were produced by a good delivery refiner?
We got in contact with the LBMA to find out more.
The LBMA
“In 1750 the Bank set up the London Good Delivery List, which formally recognised those refineries who produced gold bars of a certain standard and could therefore be allowed to enter the London market. Today this list is regarded as the only globally accepted accreditation for the bullion market, ensuring that the wholesale bullion bars traded in the market meet standards and quality required by Good Delivery.” (LBMA, 2015)
The LBMA benchmarks and regulates the acceptable requirements for large Gold and Silver bars. Only bars that meet LBMA Good Delivery standards are acceptable in settlement of a loco London contract. You can view details of all the LBMA accredited gold refiners who are on the Good Delivery Lists HERE.
The specifications for a good delivery bar are:
Gold
- That it has a minimum gold content of 350 fine troy ounces and a maximum of 430.
- The minimum acceptable fineness is 995.0 parts per thousand fine gold
- The bar should also be marked with a serial number, the assay stamp of refiner, the fineness (to three significant figures)
and Year of manufacture.
Silver
- That it will have a minimum silver content of 750 troy ounces and a maximum of 1100.
- The minimum acceptable fineness is 999.0 parts per thousand silver.
- The bar should also be marked with a serial number, the assay stamp of refiner, the fineness (to three significant figures)
and Year of manufacture.
So as you can see the good delivery bar status really only applies to large market bars for paper traders. If you, like 98% of our other customers, are buying bars sized under 350 troy ounces then realistically you have to understand that they will not be a good delivery bar, they are not checked by the LBMA, the certification of a refiner will not pass onto the smaller bars.
So how much weight does that statement really carry? If it isn’t the LBMA’s responsibility to check your bars, who’s is it?
So you might ask what does Bleyer do to ensure that the products which we offer are of the advertised quality?
Standards we look at include:
- Our long standing and experience in the Bullion Market as a company; we can spot a fake a mile away
- Serial numbers on larger bars can be traced.
- We have our own measures of refiner quality which include – company history and whether they are backed by governments, for example producers of legal tender.
We ALWAYS build relationships with our suppliers so that:
- When purchasing products we source them directly from the refiners and trusted resellers of their products.
- We use refiners backed by governments, producers of legal tender.
- Building close relationships with our chosen suppliers, meeting with them in person.
- Historic companies
FAQ’s:
So does this mean that when I’m purchasing a physical bar its not considered a good delivery bar?
That’s likely correct, the specifications for a good delivery gold bar are that it has a minimum gold content of 350 fine troy ounces and a maximum of 430. A silver good delivery bar will have a minimum silver content of 750 troy ounces and a maximum of 1100. The good delivery title is really only appropriate for market trading bars.
Should I only purchase bullion produced by good delivery refiners?
Although most of the bullion products which Bleyer offers are produced by LBMA good delivery refiners we believe that having the good delivery certification is not necessarily the only thing you should think about when deciding on your purchase. We only offer products that we believe we can guarantee in absolute quality and consistency. But we believe that LBMA certification is not the only proof of quality. For example the refiner Leipzieger Precious Metals Factory which produces the Noah’s Ark Coin is not an LBMA Certified Good Delivery Refiner. However they produce silver bullion coins backed by as legal tender by the Armenian Government, they have no need to have the LBMA certification as producing bars for the London Bullion Market is not one of their areas of business. In fact the Royal Mint isn’t a good delivery refiner either but does this mean they produce items of lesser quality? We don’t think so.
Are Baird & Co. a producer of LBMA good delivery bars?
Although Baird & Co. are a member of the LBMA they are currently NOT an LBMA good delivery bar refiner. Baird & Co. however are one of the longest standing and most trusted refiners in Europe. Baird & Co. do produce ‘market bars’ in sizes of 400oz gold and 1000oz silver which are available for purchase through us by request. However these are not certified by the LBMA as “Good Delivery Bars” and are not traded on the London Bullion Market. In addition, some other European refiners will not buy back Baird Bars for this reason. We do of course promise to buy back all Baird bullion products as we are sure of their quality.
How can I be sure of the quality of the bullion I am buying?
- Always buy them from a reputable company which is established and has experience in the Physical Bullion Market
- Be wary of deals to good to be true from private sellers
- For scrap gold you might like to grab a testing kit (Read more HERE)
The information written in this article was to the best of our knowledge correct on the 13.01.2015. We highly recommend that you visit the LBMA website to get the most up to date and current information on LMBA good delivery rules and refiners. If you believe that any of the information on this page might be incorrect then please send an email to sales@bleyer.co.uk.
