Here you will find answers to the following questions:
1. What is and how does the LBMA work ?
2. What is LBMA accreditation ?
3. How does it work and who gets LBMA accreditation ?
4. What is the Good Delivery List ?
5. Why choose LBMA accredited bars ?
At a glance
- The London Bullion Market Association is responsible for the Good Delivery List, a list of entities that meet high standards in the production of gold bars.
- Accreditation on the Good Delivery List applies to producers of bars weighing 400 ounces, or 12.5 kg (used in interbank settlements). However, it is standard in the gold market that bars from manufacturers on the LBMA list are recognized and acknowledged worldwide.
- It’s worth choosing bars from manufacturers that are on the list, because it’s a guarantee of quality and resale around the world.
- The LBMA conducts bidding twice a day between major gold market participants and, based on this, reports the price of bullion, which is considered a market indicator for the whole world.
What is the LBMA?
Whether we consider New York or Tokyo to be the capital of world trade, certainly the heart of the gold market beats on the Old Continent, specifically in London.
The LondonBullion Market Association, or LBMA, is a long-established institution that brings together the largest and most important companies in the industry and ensures high standards in the gold market.
What is accreditation with the LBMA?
When looking for reliable bar manufacturers, one will come across information about LBMA accreditation. What is it?
LBMA accreditation for a manufacturer means inclusion on the Good Delivery List, or Good Delivery List. The history of the list dates back to colonial times, when gold from various sources flowed into the capital of the British Empire. In 1750, the Bank of England, in an effort to standardize standards in gold trading, set criteria that gold bars had to meet in terms of weight or assay, among other things, in order to be allowed on the London market.
The manufacturer’s inclusion on the London Good Delivery List was tantamount to confirmation that its products meet high standards and can be traded on the market.
Czarek Jóźwik
“Sklep Goldsaver to wygodne rozwiązanie dla osób jak ja, które do tej pory nie miały zbyt wiele do czynienia ze złotem. Można ustawić stałe zlecenie i przypomnieć sobie o złocie jak kurier przyniesie już całą uncjową sztabkę. Nie trzeba śledzić notowań i zastanawiać się, czy teraz jest dobry moment na zakup czy nie. Spoko wygodny sposób na budowanie kapitału na przyszłość, bez konieczności zagłębiania się w niuanse rynku”
Good Delivery List
The modern LBMA was established in 1987 and continues to create the Good Delivery List. In order to be accredited, a producer must pass an inspection of the production process, financial situation, but also the company’s history. In addition to the technical standards for gold quality, these companies must adhere to the principles of the Responsible Sourcing Program and the Global Precious Metals Code, regarding environmental issues or respect for human rights. Thus, LBMA accreditation demonstrates adherence to high standards in all these areas.
The list applies to manufacturers of bars weighing 400 ounces (i.e. about 12.5 kg), i.e. those used primarily in interbank trading. The presence of a manufacturer on the list is not only prestigious, but, above all, an assurance that LBMA standards are met (and regularly inspected by an independent institution). Thus, it is worth choosing bars from manufacturers that are on the list, which significantly increases their credibility. It is worth noting that the list is an important indicator for gold traders around the world. A bar from a manufacturer with LBMA accreditation will be easily recognized in Poland and around the world, verified and – if you decide to resell – bought at a market price adequate for investment gold.
Find out how to sell gold
Manufacturers who do not beat 12.5 kg bars are not subject to the said accreditation. In this case, the lack of presence on the Good Delivery list is not discrediting. An example is the Austrian Mint, which produces one of the world’s most popular coins (the Vienna Philharmonic). The bars for the Austrian Mint are physically produced by Argor Heraeus, which is on the LBMA list.
The Good Delivery list is managed by a committee consisting of industry experts – employees of the Bank of England and other treasuries, as well as LBMA judges primarily responsible for technical evaluation. The judges include the most prestigious and recognized companies from around the world such as Argor-Heraeus SA (Switzerland) , Metalor Technologies (Switzerland), PAMP SA (Switzerland), Rand Refinery (South Africa) and Tanaka Kikinzoku (Japan).
Learn more about the largest gold bar manufacturers
Who is affiliated with the LBMA?
The LBMA brings together about 150 companies from around the world – refiners, mints, mining companies or those providing storage and transportation services. Membership in the association requires the recommendation of other entities and is also strictly regulated.
It is worth remembering that the LBMA publishes the gold price twice a day, which it sets based on the bidding of market participants. The LBMA Fixing is an important indicator for gold prices around the world.
Find out what the price of gold depends on?
The LBMA is an independent body that sets and maintains the highest standards for gold production in the industry. It makes sense to choose bars from manufacturers that are on the recognized Good Delivery list. The London Bullion Market Association’s accreditation is a guarantee of the bar’s worldwide recognition.
