What is the LBMA?
If you have an interest in gold, silver and precious metals you may have heard of the term “LBMA Certified”. The LBMA stands for the London Bullion Market Association who essentially set the standard for the global wholesale market of bullion grade gold and silver.
The LBMA’s job is to ensure the the integrity and quality of certified bullion gold and silver as well as approve, review and audit companies within the precious metals market.
Gold and silver bullion bars that are “LBMA Certified” means they can only be specifically made by LBMA approved refineries that meet a specific high standard set by the LBMA. This is also known as the Good Delivery List.
The Good Delivery List is an internationally recognised standard for gold and silver bullion which includes what is acceptable regarding appearance, shape, purity and more.
The London Good Delivery List, was originally set up by the Bank of England in 1750.
In 1987 the LBMA was established and essentially took over tasks including regulating the gold and silver bullion market, facilitate trades, setting purity and refining standards, set rules on weight, size, shape, handling, stacking etc.
The LBMA also promote the Global Precious Metals Code. This code is aimed at providing specific principles and guidance as well upholding a high standard of business conduct within the precious metals market. Even the Bank of England is committed to these rules and regulations.
A refiner must meet the strict criteria if they want to appear on the LBMA approved list. If approved they would receive immediate acknowledgement and gain trust from the wider market that the refiner is producing is a responsibly sourced, high quality, industry standard gold or silver product.
Examples of gold and silver bar specifications include:
Gold: Fineness: Minimum acceptable fineness is 995.0 parts per thousand fine gold.
Silver: Fineness: Minimum acceptable fineness is 999.0 parts per thousand silver.
Both require specific marks: Serial number, Assay stamp of refiner, Fineness (to four significant figures), Year of manufacture (Source LBMA.org.uk).
International prices for gold and silver are set in London by an independently operated auction. The LBMA price is set twice daily for gold and once daily for silver.
The price is set in US dollars per troy ounce.
As a customer looking to purchase large quantities of gold or silver bullion bars then it would be advisable to invest in bars that have Good Delivery status.
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