Rahul Sharma (Editor)

Good Delivery

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Good Delivery

The Good Delivery specification is a set of rules issued by the London Bullion Market Association (LBMA) describing the physical characteristics of gold and silver bars used in settlement in the wholesale London bullion market. It also puts forth requirements for listing on the LBMA Good Delivery List of approved refineries.


Good Delivery bars are notable for their large size and high purity. They are the type normally used in the major international markets (Hong Kong, London, New York, Sydney, Tokyo, and Zürich) and in the gold reserves of governments, central banks, and the IMF.

US commodity contracts do not guarantee delivery of gold and silver. All other commodities may be force-delivered instead of simply being settled with a credit to account. Since 2012, US account commodities traders asking for delivery have been routinely denied physical delivery and paid with credit to account. This is not usually an issue because CBOT and COMEX gold and silver trading has become primarily a derivatives market, since fund managers mostly never intend to take delivery.

The Good Delivery Rules for Gold and Silver Bars

The entire Good Delivery specification is contained in the LBMA document titled The Good Delivery Rules for Gold and Silver Bars: Specifications for Good Delivery Bars and Application Procedures for Listing. The document includes specific requirements regarding the fineness, weight, dimensions, appearance, marks, and production of gold and silver bars. It specifies procedures for weighing, packing, and delivery. It also describes policies for ensuring refiners' compliance with the specifications.

The current edition of the Good Delivery Rules was published in March 2015.

Gold bars

  • Fineness: minimum of 995.0 parts per thousand fine gold
  • Marks: serial number, refiner's hallmark, fineness, year of manufacture
  • Gold content: 350–430 troy ounces (11–13 kg)
  • Recommended dimensions
  • 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)
  • Silver bars

  • Fineness: minimum of 999.0 parts per thousand silver
  • Marks: serial number, refiner's hallmark, fineness, year of manufacture
  • Silver content: 750–1,100 troy ounces (23–34 kg); 900–1050 oz t recommended
  • Recommended dimensions
  • Length (top): 250–350 mm
  • Width (top): 110–150 mm
  • Height: 60–100 mm
  • Weight is not recommended to be stamped on bars of either gold or silver, because bars will be officially weighed on delivery, and this weight—which may be different from that originally marked—will prevail. A bar's weight may also change by handling or sampling, thus invalidating the original mark.

    Non-Good Delivery

    Bars that do not comply with Good Delivery rules are termed Non-Good Delivery. If they are similar to Good Delivery bars but do not fully meet the requirements, they must be stamped with "NGD" to distinguish them from conforming bars.

    LBMA Good Delivery List

    The LBMA maintains two Good Delivery Lists of approved refineries (one for gold and one for silver) that meet certain minimum criteria (age, net worth, and production volume) and have demonstrated their ability to produce Good Delivery bars. Listed companies agree to submit to monitoring by the LBMA. Those listed companies that refuse to participate in regular monitoring are removed from the Good Delivery List and added to the Former List.

    Good Delivery Referees

    Five companies are accredited by the LBMA as Good Delivery Referees in order to supervise the Good Delivery System and monitor the companies with Good Delivery certification. The referees' main functions are:

  • Technical assessment of applicants for listing
  • Proactive monitoring of refiners on the Good Delivery List
  • Provision of technical advice on a range of topics
  • The companies accredited as referees are:

  • Argor-Heraeus SA (Switzerland)
  • Metalor Technologies SA (Switzerland)
  • PAMP SA (Switzerland)
  • Rand Refinery (PTY) Ltd (South Africa)
  • Tanaka Kikinzoku Kogyo K.K. (Japan)
  • References

    Good Delivery Wikipedia

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