Good Delivery Gold

Article reviewed by Daniel Marburger, Managing Director StoneX Bullion

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Good Delivery gold refers to gold bars that meet the strict quality and specifications established by the London Bullion Market Association (LBMA) Good Delivery List. This set of standards outlines requirements that gold and silver bars must meet in order to be accepted for delivery in the London bullion market. The list covers specifications including fine ounce weight, purity, and physical appearance.

Good Delivery gold bars weigh approximately 400 troy ounces (about 12.4 kilograms) and have a minimum purity of 99.5%. They are only produced by accredited refiners and must be stamped with the refiner’s hallmark, assayed purity, year of manufacture, and unique serial number.

The LBMA Good Delivery List is essential for maintaining consistency, trust, and integrity in gold trading. Good Delivery gold is considered the ‘gold standard’ and is the preferred choice by institutional investors, central banks, and international gold markets.

How does the London Bullion Market Association define Good Delivery?

The LBMA’s definition of Good Delivery involves meeting strict standards for quality, authenticity, and ethical sourcing. The key elements of Good Delivery standards include:

Refiner accreditation

Good Delivery gold must be manufactured by refiners accredited by the LBMA according to strict requirements. Refiners are subject to frequent audits to ensure they continue meeting the strict standards set by the LBMA.

Specifications

Good Delivery gold and silver bars must meet detailed specifications regarding fineness, dimensions, weight, appearance, and markings. For example, a Good Delivery gold bar must weigh 400 troy ounces and have a minimum fineness of 99.5%.

Chain of integrity

Good Delivery gold must be sourced from suppliers that meet the LBMA’s Responsible Gold Guidance. These regulations aim to prevent human rights abuses, avoid contributing to conflict and terrorist financing, and abide by anti-money laundering rules.

Proactive monitoring

Good Delivery gold bars are routinely checked by the LBMA to ensure they continue meeting the necessary specifications. Failure to meet requirements might result in the refiner being removed from the Good Delivery List.

What are the specifications of Good Delivery gold bars?

Good Delivery gold bullion bars must meet strict specifications regarding weight, markings, fineness, and dimensions.

GOOD DELIVERY GOLD BAR SPECIFICATIONS
FINENESS (MINIMUM)	995.0
MARKS	Serial number Assay stamp of refiner Fineness Year of manufacture
FINE PRECIOUS METAL CONTENT	350-430 troy ounces (11-13 kg)
LENGTH (TOP)	210-290 mm (~8.3-11.4 inches)
WIDTH (TOP)	55-85 mm (~2.2-3.3 inches)
HEIGHT	25-45 mm (~1-1.8 inches)

The LBMA also outlines a general description of Good Delivery gold bars, including factors such as weight, casting method, shape & stacking, appearance, and marks.

Weight

Good Delivery bars must be weighed according to LBMA-approved procedures.

Casting method

Good Delivery gold bars must be produced according to a specific casting method: either by pouring molten gold into graphite or cast iron molds or melting grain into an induction tunnel system.

Shape and stacking

Good Delivery gold bars must have an ingot shape with a trapezoidal cross-section so they remain stable when stacked. They should also have smooth edges to avoid the risk of injury when handling.

Appearance

Good Delivery bars must be free from defects like cracks, holes, or excessive shrinkage, which can affect weight and stability. Their surface should be flat, smooth, and free from dirt and debris.

Marks

All Good Delivery gold bars must be marked using conventional (pressure) stamping or dot matrix (pneumatic punching). Marks should be clear and durable with a minimum height of 12 mm.

Weight stamps

The LBMA doesn’t recommend stamping weights on Good Delivery bars as it can lead to discrepancies when re-weighing bars in vaults. If bars are stamped, the unit of weight must be displayed.

The importance of Good Delivery standards in gold & silver bars trading

Good Delivery standards set a benchmark for quality, trust, and integrity in the gold and silver bullion market, assuring investors that their products are high-quality, ethically sourced, and adhere to market standards.

Consistency

Good Delivery standards outline specific criteria for weight, purity, and dimensions, ensuring that each gold or silver bar meets the same specifications. This uniformity makes Good Delivery bullion universally recognized and accepted in global markets.

Trust & assurance

Good Delivery gold and silver come with an in-built assurance of authenticity, purity, and integrity. Knowing that their precious metals bullion investment meets the strict standards set by the LBMA provides a level of confidence and assurance for investors.

Liquidity

Good Delivery bullion bars are readily accepted in major bullion markets worldwide, meaning they can easily be bought or sold across borders without requiring further assays or verification checks. This simplifies trading and makes transactions easier and more efficient.

Ethical considerations

Good Delivery standards make it easier for investors to prioritize ethical sourcing in their investment choices. Because refiners must meet strict requirements regarding chain of integrity, Good Delivery gold and silver provide immediate assurance that the precious metals have been sourced responsibly.

Protection against counterfeits

Gold and silver bullion bars must meet strict standards in order to be classified as Good Delivery. This can help prevent the circulation of counterfeit or substandard bars, protecting investors against potential fraud while also safeguarding market integrity.

Transparency

Good Delivery standards help promote price transparency in the market. When a gold or silver bar is listed as Good Delivery, it’s known to meet strict, universally recognized standards. With all Good Delivery bars meeting the same high quality, it’s easier to determine a fair price.

What makes gold refiners qualify as Good Delivery?

One of the key requirements of Good Delivery gold is being produced by refiners that are certified by the LBMA and listed on their Good Delivery List.

Before being accepted onto the Good Delivery List, refiners are subject to strict checks on their:

• History in the market: Refiners must have been operating for over five years and been refining gold for at least three years.
• Financial standing: Refiners must have a tangible net worth of more than £15 million.
• Ability to manufacture bars that meet LBMA standards: Refiners must satisfy strict Due Diligence tests regarding ownership, reputation, and finances.
• Minimum production volumes: Refiners must have an annual refining production of no less than 10 tonnes for gold.

Refiners must also apply LBMA’s Responsible Gold Guidance and commit to:

• Observe the LBMA’s Responsible Sourcing Programme
• Produce bars that meet LBMA Good Delivery Rules
• Ship to approved vaults in London.

Refiners must pay an application fee before being considered for the Good Delivery List. The LBMA Rulebook, which helps refiners assess their eligibility for the list, outlines key principles such as integrity, skill, care, diligence, management and control, financial prudence, and market conduct.

As of December 2024, there are 65 gold refiners and 81 silver refiners on the Good Delivery List.

What are the inspection processes for Good Delivery gold bars?

Good Delivery gold bars are subject to routine inspections (known as proactive monitoring) every three years to ensure they continue to meet the LBMA’s strict quality standards.

The inspection process starts by notifying the refiner about an upcoming monitoring operation, who must appoint a supervisor to oversee the process. The core inspection process revolves around taking a dip sample from a normal production melt just before a gold bar is cast. This is witnessed by the appointed supervisor.

Two of the dip samples are sent to independent referees from assaying and the remaining are assayed by the refiner using fire (for gold) or spectrographic (for silver) methods. The assay results are then submitted to the LBMA and compared with the referee’s assaying.

The dip sample must meet specific requirements regarding weight and thickness (10g for gold and 30g for silver) as well as purity (between 995 and 999 for gold and 999+ for silver).

If there is a discrepancy between the refiner’s and referee’s results, further testing may be needed. If the assay results fail to meet required standards, the refiner might need to submit additional samples for testing. In extreme cases, they may have to reapply for Good Delivery status.

Detailed reports are generated throughout the entire inspection process, documenting the sampling and assaying methods used, results, and any discrepancies. This transparency ensures that only bars meeting the LBMA’s strict standards are considered Good Delivery.

Why do institutional buyers prioritize Good Delivery gold & silver bars?

Institutional buyers prioritize Good Delivery gold and silver bars because they meet strict quality, purity, and authenticity standards established by the LBMA.

Global recognition

Gold and silver bars that meet Good Delivery standards are universally recognized and trusted, making them easier to trade in international markets without the need for additional verification or assaying.

Liquidity

Good Delivery gold and silver bullion are highly liquid and widely accepted in bullion markets, making them easy to sell when needed. Buyers prize Good Delivery bars because their standardization provides reassurance and their authenticity is guaranteed.

Reduced risk of counterfeiting

The stringent manufacturing, marking, and certification standards set by the LBMA makes it difficult to counterfeit Good Delivery bars. Additionally, each bullion bar is numbered and registered, providing assurance to institutional buyers that their investment is genuine.

This material is for informational purposes only and should not be considered as an investment recommendation or a personal recommendation.