What is LBMA and Good Delivery certification
When buying investment gold, sooner or later you will come across four letters: LBMA. They appear in product descriptions, at refineries and in dealers' marketing as a mark of quality. But what do they mean, and why is „Good Delivery" considered the highest standard in the precious-metals industry? Let us explain it clearly.
What is the LBMA?
The LBMA (London Bullion Market Association) is the London-based trade association for the wholesale gold and silver market, founded in 1987. It brings together refineries, dealers, banks and carriers from around the world and sets the rules by which the over-the-counter (OTC) precious-metals market operates. London is historically the most important centre of gold trading – which is why its standards carry global weight.
The LBMA does not produce or sell gold itself. Its key role is to set and monitor quality standards and to maintain the lists of refineries that meet them.
What „Good Delivery" means
„Good Delivery" is a set of strict standards for wholesale bars and, at the same time, the name of a list – the so-called Good Delivery List. It contains the refineries whose bars meet the required parameters for fineness, weight, marking and cast quality. Only bars from these accredited producers are accepted in London without being re-assayed.
The specific requirements differ by metal:
| Parameter | Good Delivery gold bar | Good Delivery silver bar |
|---|---|---|
| Minimum fineness | 995.0/1000 (99.5%) | 999/1000 (99.9%) |
| Weight range | 350–430 oz (approx. 11–13 kg) | 750–1100 oz (approx. 23–34 kg) |
| Typical „standard" bar | approx. 400 oz (approx. 12.4 kg) | approx. 1000 oz (approx. 31 kg) |
| Mandatory markings | maker, fineness, serial number, year | maker, fineness, serial number |
How a refinery gets onto the Good Delivery List
Accreditation is not a given – a refinery must prove that it belongs to the industry over the long term. The LBMA assesses mainly:
- a minimum annual refining volume, along with corresponding financial strength and company history,
- successfully passing independent fineness tests (assay tests), in which reference laboratories examine bar samples,
- the quality and appearance of the cast, and the legibility and correctness of the marking,
- compliance with responsible-sourcing rules for the metal, against money laundering and conflict gold.
Accreditation is also reviewed regularly – the refinery must maintain quality permanently, not just when joining the list.
The chain of integrity and responsible sourcing
Closely related to Good Delivery is the concept of the „Chain of Integrity". Bars that move within a recognised system between accredited vaults and carriers retain their trustworthiness and do not need to be re-assayed with every transaction. The rules also include a responsible-sourcing programme designed to ensure that the gold does not come from illegal sources, conflict areas or money laundering.
Is my 1g bar „Good Delivery"?
Here is an important clarification that many investors confuse. In the strict sense, the Good Delivery standard applies to large wholesale bars (gold approx. 400 oz, silver approx. 1000 oz) traded between banks. The small investment bars you usually buy – from 1 g to 1 kg – are therefore not „Good Delivery bars" in terms of format.
What is crucial, however, is this: these small bars are made by the very same refineries that are accredited on the Good Delivery List (for example Argor-Heraeus, PAMP, Valcambi, Heraeus or Metalor). The quality guarantee therefore lies not in the format of your bar, but in the reputation and accreditation of its producer. That is precisely why „LBMA" is stated with products – it refers to the trustworthiness of the refinery.
Why this matters to the investor
An accredited refinery brings the buyer several practical benefits:
- Verified fineness and weight – you are not buying a „pig in a poke"; the parameters match the certificate.
- Easy resale – bars from well-known LBMA refineries are bought back by dealers worldwide without needless testing.
- Lower risk of counterfeiting – established producers use security features and certificates.
- Verifiable origin – the metal comes from a checked, responsible source.
At GOLDU we therefore offer investment gold from major global suppliers – renowned refineries and mints (LBMA).
The LBMA and the gold price
The LBMA also plays a role in setting the reference price. Twice a day (in the morning and afternoon, London time), the LBMA Gold Price is set – a globally recognised reference price for gold that wholesale and retail prices are based on. It replaced the former „London Fixing" and is today administered by an independent administrator through an auction.
Frequently asked questions
Is LBMA a certificate I receive with the bar?
No. The LBMA is an association and an accreditation system for refineries, not a certificate for the individual bar. With the bar you receive the manufacturer's (refinery's) assay certificate.
Can I recognise an accredited refinery by the marking?
Renowned refineries state their brand, the fineness and, on larger formats, the serial number on the bar.
Does investment gold have to come from an LBMA refinery?
It is not a legal requirement, but a strong recommendation. Bars from accredited producers have the best resale value and the greatest market trust. So buy gold only from a verified supplier.
How do I verify a bar's authenticity at home?
Through a combination of the certificate, security features and, where appropriate, non-destructive measurement.
