Good Delivery Explained
The global OTC market for precious metals is dependent on the fungibility of bars that underpin the system. Only gold and silver bars that meet LBMA’s Good Delivery standards are acceptable in the settlement of a loco London contract. We set the global standard for these bars through maintenance of the London Good Delivery Lists.
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 and 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.
Refiners seeking acceptance to the Good Delivery List must undergo stringent checks regarding their history in the market, their financial standing and their ability to produce bars that meet the exacting standards of London Good Delivery (LGD) bars. Additionally, they must implement LBMA’s Responsible Gold and/or Silver Guidance prior to accreditation. See the Good Delivery Rules for further information.
Refiners that are accepted onto the Good Delivery Lists commit to responsibly sourcing metal, refining it into Good Delivery bars (of approximately 400 troy ounces for gold and 1,000 troy ounces for silver) and shipping to approved vaults in London. Bars are then freely traded between institutions within the market.
For questions about the application process contact the LBMA
Proactive Monitoring of Accredited Refiners
LBMA conducts Proactive Monitoring (PAM) of all accredited Good Delivery refiners on a three-yearly basis. PAM commences approximately three years after the original listing date of the refinery and thereafter runs on a three-yearly cycle. The PAM programme examines the refiners’ assaying competence. Should a refiner no longer meet the required conditions, then its bars would be moved to the Former List. View the Good Delivery Rules for further details.
Details of a refiner’s most recent activity for PAM are shown in the Good Delivery Lists.
Additionally, LBMA conducts an annual check to ensure that the refiners all continue to meet the minimum requirements for refined production and tangible net worth.
LBMA has developed an image based resource for vault managers to promote consistency regarding acceptability of London Good Delivery bars.