Good Delivery
About Good Delivery
We set the stringent Good Delivery standards, trusted around the world, that enable the global trade in gold and silver bars.
Only gold and silver bars that meet our Good Delivery standards are acceptable in the settlement of a Loco London contract – where the bullion traded is physically held in London. Today, LBMA owns and manages the Good Delivery Lists for both gold and silver.
Why is Good Delivery important?
In the Loco London Market, precious metals are traded directly between two parties, without the involvement of an exchange. This system depends on all the bars having exactly the same specification. The requirements for a Good Delivery listed bar (of approximately 400 troy ounces for gold and 1,000 troy ounces for silver) cover:
- Fine ounce weight
- Purity
- Physical appearance (including marking and surface quality).
No other refined gold or silver products produced by accredited refiners fall within the scope of the Good Delivery Lists.
Neil Harby:
Good Delivery is a system that enables the global trade of gold and silver bars.
We set and maintain the standards that control the quality in the market.
It’s the de facto standard, trusted around the world.
Good Delivery Lists are lists of gold and silver refiners who are accredited by the LBMA to supply gold and silver bars into the London market.
Refineries must produce bars which satisfy high standards in terms of purity, quality and physical appearance. They must produce at least 10 tonnes of refined gold or 50 tonnes of refined silver. And they must have a tangible net worth of at least 15 million pounds.
The LBMA believes that the long-term viability of a refiner is just as important as the Rules.
The lists are regularly monitored to ensure that the stringent standards are maintained.
If a refiner fails to meet the standards, they will be removed from the Lists, which will have serious implications both reputationally and financially.
Accredited refiners
To be accepted onto the Good Delivery List refiners must undergo stringent checks on their:
- History in the market
- Financial standing
- Ability to produce bars that meet our exacting standards
- Minimum levels of production.
They must implement LBMA’s Responsible Gold and/or Responsible Silver Guidance. See the Good Delivery Rules for further information. Refiners accepted onto the Good Delivery Lists commit to:
- Adhering to LBMA’s Responsible Sourcing Programme
- Producing bars which meet LBMA Good Delivery Rules
- Shipping to approved vaults in London.
Once accepted into a London vault as Good Delivery, bars are then traded freely between institutions within the market.
Annual checks on tangible net worth and refined production
We also conduct an annual check to ensure that refiners continue to meet the minimum requirements for refined production and tangible net worth.