September 28, 2021

GDL Newsletter: September 2021

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The Good Delivery List (GDL) Refiners have most certainly kept the GDL team busy this month. There are nine Good Delivery applications in process, Proactive Monitoring (PAM) is in full swing, and several refiners are upgrading their production equipment, which is always good to hear. There have also been a couple of relocations and ownership changes.

The Proficiency Testing Scheme 2022 was launched with a registration deadline of 23 September 2021.

Proactive Monitoring (PAM)

In the previous communication, the results of gold data from the PAM and Good Delivery List (GDL) application assay results from April 2005 to May 2019 were discussed. In this article, the results of the silver data will be examined.

A key indicator is the difference or divergence between the assay laboratory reported fineness values and LBMA reference fineness values for the same test samples. LBMA values come from the Referee Laboratories (RL). Each RL produced a set of test samples and verified the homogeneity by assaying many sub-samples. LBMA conducted blind cross checks of their assays in comparison to two or more other RLs to arrive at a reference assay value.

Analysing the Assay Divergences

The divergence is calculated by:

∆ = LabAssay – LBMA

For silver samples < 999.5‰, there were 253 assays compiled. Overall, 97% of assay divergences were within ± 0.15‰ which is the limit for this material according to the GDL Rules. A frequency distribution histogram is shown in Figure 1. The distribution peak is at 0.00‰ divergence and the divergences are normally distributed. There is very slight tailing towards the negative divergence side which indicates some laboratory assays are low biased.

Figure 1. Divergence frequency distribution histogram for Ag < 999.5‰ for data collected from April 2005 to May 2019.

For higher purity silver > 999.5‰, 277 assays were reviewed. Overall, 93% of assay divergences were within ± 0.05‰ which is the limit for this material according to the GDL Rules. A frequency distribution histogram is shown in Figure 2. The distribution peak is centered at 0.00‰ divergence and the divergence distribution is slightly skewed towards the negative divergence side. This indicates that there is a slight tendency for low bias reporting for some laboratories.

Figure 2. Divergence frequency distribution histogram for Ag > 999.5‰ for data collected from April 2005 to May 2019.

For silver, assays are mainly done by potentiometric titration or by difference (spectrometry). More data must be collected to better understand this tendency especially with lower number of comparisons.

Overall, this data indicates assays on silver GDL bars are accurate and support the market. Assay laboratories that report values with an unacceptable overall bias, or with divergences outside the limits as per the GDL Rules, would fail either the GDL application or PAM test. In the case of poor PAM results, there is a process to assist the GDL laboratory improve their assaying ability thus protecting the market. There are two conclusions: 1) the vast majority of assays reported are within the divergence limits in the Good Delivery Rules and 2) the limits appear to be reasonably set so that there is no need to change these limits.

Proactive Monitoring Criteria

The Executive is currently reviewing the criteria for refiners that do not pass the four-nines or dip sampling. Once the review is concluded, any changes will be communicated prior to taking effect.

Silver Bars - Weight Stamps

Following ongoing discussions with CME to ensure that both London and New York markets are harmonised, CME recently announced a Rule Amendment, effective from 27 September 2021, that silver bars without weight stamps will be acceptable providing they have been weighed by an LBMA Approved Weigher. Find out more on the CME website.

Organisation Changes - What To Do

As outlined in the Good Delivery Rules (section 3.2 Corporate Changes, an excerpt of which is below), GDL Refiners are required to inform the Executive of any organisational changes prior to them taking effect:

Good Delivery Rule 3.2 Corporate Changes, is copied below:

“A Refiner must inform the GDL Team at least one month in advance, providing all appropriate details, if it wishes to change:

Location of its Refiner;
Ownership or control (including group restructuring);
Changes in processes.

Failure to do so could potentially jeopardise any production from the period the change took place to the refiner notifying the Executive and the change being approved

LBMA Responsible Sourcing Guidance Revision (RGG v.9)

Following a first round of extensive consultations with stakeholders, LBMA has launched a second public consultation of the Responsible Gold Guidance (RGG), the document that underpins our responsible sourcing programme.

You can find out more – and read the full RGG draft – on LBMA website.

If you would like to share any content for inclusion, or let us know what you think about this newsletter, please email gdl@lbma.org.uk.

Please update your email subscriptions via the MyLBMA portal and if you have any access issues, please contact mail@lbma.org.uk.

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