FAQ

LBMA is an independent authority for the precious metals industry. LBMA is committed to advancing the highest levels of leadership, integrity and transparency for the common good of the global precious metals industry by driving up standards in responsible sourcing, accrediting supply to the London Loco market and providing confidence to refiners, buyers, storers, traders and consumers.

LBMA was established to meet the needs of precious metals traders by maintaining integrity and trust in the global precious metals trade. It plays a central role in advancing and enforcing industry standards that are developed in collaboration with the industry, relying on voluntary adoption, consent and cooperation.

The roots of the London bullion market can be traced to the partnership between Moses Mocatta and the East India Company, which started shipping gold together towards the end of the 17th century. It was, however, the introduction of the London Silver Fixing in 1897 and the London Gold Fixing in 1919 that formally marked the beginnings of the market’s structure and of the interaction between members that has created the marketplace as it is today. The growth in the number and type of market participants in the early 1980s, combined with the introduction of the Financial Services Act in 1986, brought about the formation of the LBMA on 14 December 1987. Among the more notable changes that LBMA has undergone in recent years is to have become the intellectual property holder of the four precious metals spot price benchmarks, namely, the:

• LBMA Gold Price
• LBMA Silver Price
• LBMA Platinum Price
• LBMA Palladium Price

Another change was to further enhance the governance of the Association. The UK Corporate Governance Code was incorporated and determines both the Constitution as well as the operation of the Board. While it is vital for the Board to have a strong voice for its members, it is important that any actual or perceived conflicts between these parties are balanced by having independence on that Board. This independence protects the interests of the wider membership as well as the individuals themselves serving on the Board. In 2025, as part of a regular Board rotation, LBMA appointed a new Independent Non-Executive Director and Chair. As part of their tenure, they will review LBMA’s governance to ensure that it applies the same principles of transparency and continuous improvement to its own processes as it expects of others. This commitment to self-assessment and enhancement underscores our dedication to maintaining the highest standards.

The Good Delivery List, first and foremost, sets technical standards (fine ounce weight, purity and physical appearance) which refiners must meet. Refiners that wish to be included on the Good Delivery List are required to implement LBMA’s ‘Responsible Sourcing Guidance’, which comprises the Responsible Gold Guidance and Responsible Silver Guidance, and to obtain annual independent third-party assurances reporting on their compliance with this guidance.

LBMA is transparent in its commitment to maintaining the highest due diligence standards for sourcing precious metal material and is continually pushing for advancements in responsible sourcing. LBMA's Responsible Sourcing Programme is aimed at promoting international ethical standards amongst gold and silver refiners. It underpins the drive for continuous improvement of standards and responsible business practices designed to protect the value of the gold we all treasure.

All metal sourced from LBMA Good Delivery (GDL) Refiners is subject to an assurance process to establish that it is responsibly sourced.

The Programme follows the five-step due diligence framework set out in the OECD Guidance and requires GDL refiners to demonstrate their efforts to combat money laundering, terrorist financing and human rights abuses, and respect the environment globally.

LBMA is taking a leading role by creating a coalition of willing partners across the global precious metals industry. This work includes co-ordinating the industry - including International Bullion Centres, bullion banks, NGOs and Central Banks - to identify and implement best practices, with the ultimate objective of positioning precious metals as part of the solution to sustainability, rather than an obstruction.

The Responsible Gold Guidance (RGG) Guidance, amongst other things, follows the five-step framework for risk-based due diligence of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. LBMA was actively involved in drafting the OECD’s guidance and continues to support the OECD’s work in supply chain due diligence and related projects.

Refiners are required to implement the Responsible Gold Guidance. Refiners are then required to obtain and submit to LBMA on an annual basis an independent third-party assurance of their supply chain due diligence. Refiners must use an assurance provider on LBMA’s ‘Approved Service Provider List’.

In the event LBMA becomes aware of allegations of criminal activity and/or potential serious breaches of the Responsible Gold Guidance, it launches an Incident Review Process.

At all times, LBMA reserves the right to request information and supporting documentation from Refiners.

LBMA may also carry out a ‘Special Audit’, which has a very specific focus and helps to provide a second opinion to confirm the refiner’s compliance with LBMA’s Guidance during the reporting period. A Special Audit may arise out an Incident Review Process, market intelligence, media allegations, whistleblowing or country or origin data analysis. Under a Special Audit, LBMA selects an auditor that is independent of the original auditor.

LBMA’s governance model is grounded in financial independence and prudent risk management. Our diversified funding structure enables us to operate objectively and to work with Refiner Members to raise standards across the global precious metals market.

LBMA is funded through a mix of annual subscription fees and commercial revenue that directly supports our mission. Subscription income includes Good Delivery List maintenance fees, Membership fees, and fees paid by Approved Assurance Providers participating in the Responsible Sourcing Programme. Commercial revenue streams include licensing financial benchmarks and trade data through Precious Metals Prices Limited (PMPL), profit sharing from Global Precious Metals Code training, and income from LBMA’s events and education programmes, including the LBMA/LPPM Global Precious Metals Conference. This balanced model ensures no single source dominates our revenue, supporting long-term sustainability and safeguarding our independence.

2025 saw LBMA Chair Paul Fisher step down as Chair and Andy Quin concluded his term as independent Non-Executive Director.

As part of the ongoing succession planning process, this year the Board welcomed Martin Fraenkel as a new Independent Non-Executive Director. The Board also voted for Peter Zoellner, who joined in 2024 as an Independent Non-Executive Director, to assume the role of Chair from October 2025. These appointments reinforce the independence and integrity of our governance.

The Board is supported by a number of sub-committees which advise on specific areas of expertise, and it meets quarterly to scrutinise LBMA’s performance and set our strategic and business vision, such as that contained within the Three-Year Strategic Plan (2025-2027).

Most global OTC gold and silver trading and to a lesser extent platinum and palladium is cleared through the London clearing system, managed by the London Precious Metal Clearing Limited (LPMCL), which operates a central electronic metal clearing hub, with deals between parties throughout the world settled and cleared in London.

The most widely traded market for bullion dealing globally is for delivery of metal in London. Consequently, the volume of Loco London metal settlements between counterparties requires an effective and efficient daily clearing system of paper transfers, which avoids the security risks and costs inherent in the physical movement of metal. LPMCL, which is operated by its members, provides an electronic matching system to effect the daily settlements in gold, silver, platinum and palladium. The LPMCL website is: www.lpmcl.com

The London Platinum and Palladium (LPPM) is a trade association that acts as the co-ordinator for activities conducted on behalf of its members and other participants in the London market. It acts as the principal point of contact between the market and regulators/other official bodies such as HM Revenue & Customs. It ensures the continued evolution and health of a marketplace for platinum and palladium in which all participants can operate with confidence. The LPPM website is: www.lppm.com

OTC stands for Over The Counter as opposed to an exchange traded environment. While transactions between members of the LBMA and LPPM tend to be in standard dealing amounts, when dealing with clients, a dealer will provide a tailor-made service – offering quotes for variable quantities, qualities and types of precious metal as well as for various value dates and delivery locations. Thus, OTC markets offer far greater flexibility for clients compared to a futures exchange that operates with standardised contract sizes, delivery dates and settlement locations.

There are daily benchmarks for gold (twice daily at 10.30am and 3pm), silver (once daily at noon) as well as platinum and palladium (twice daily at 9.45am and 2pm). The palladium auction follows immediately after the auction for platinum. All times referred to are London time not GMT.

Gold and Silver:
IBA independently administers the price and provides the auction platform on which the LBMA Gold Price and LBMA Silver Price is calculated, while LBMA own the intellectual property rights. The platform is electronic, tradeable, auditable and in line with the IOSCO Principles for Financial Benchmarks. Any party using the LBMA Gold Price or LBMA Silver Price for valuation and pricing activities and in transactions and financial products requires a usage licence with IBA. Please contact iba@theice.com for details on how to obtain the requisite licence.

Platinum and Palladium:
The LBMA Platinum and Palladium Price is administered independently by the London Metal Exchange (LME). The intellectual property for both prices is held by Precious Metals Prices Limited, a subsidiary company of LBMA. Same-day LBMA Platinum and Palladium prices can be accessed through market data vendors listed on the LME website.

As of November 2025, the amount of gold held in London vaults was 8,858 tonnes (a 0.20% increase on previous month), valued at $1.142 trillion, which equates to approximately 708,678 gold bars.

As of November 2025, the amount of silver held in London vaults was 26,255 tonnes of silver (a 6.8% increase on previous month), valued at $41.3 billion, which equates to approximately 875,154 silver bars.