LBMA Good Delivery
Also: Good Delivery, GD Bar, LBMA Standard
The LBMA Good Delivery standard is the globally recognised quality norm for tradable gold and silver bars in the institutional wholesale market, setting minimum requirements for fineness, weight, shape and refinery origin.
The LBMA Good Delivery standard is the most important quality seal in professional precious metal trading. Bars meeting this standard are accepted on the London gold market and at all major international trading venues without further inspection – they are, in effect, the "trading currency" among institutional investors, central banks and wholesalers.
What does Good Delivery mean?
"Good Delivery" literally means good deliverability – a bar carrying this status is immediately tradable without additional inspection or re-melting. The London Bullion Market Association (LBMA), founded in 1987 as a self-regulating body of the leading London precious metal dealers, administers the Good Delivery List – whose foundations are far older – and sets the rules out in the Good Delivery Rules for Gold and Silver Bars, which are updated regularly.
The standard precisely defines requirements in four areas:
- Fineness – the minimum purity level of the metal
- Weight and dimensions – tight tolerances for mass and shape
- Marking – mandatory information every bar must carry
- Origin – only approved refineries may issue Good Delivery bars
Technical specifications at a glance
| Feature | Gold | Silver |
|---|---|---|
| Minimum fineness | 995.0 ‰ (99.5%) | 999 ‰ (99.9%) |
| Target weight | 400 troy ounces (approx. 12.4 kg) | 1,000 troy ounces (approx. 31.1 kg) |
| Weight tolerance | 350–430 troy ounces | 750–1,100 troy ounces |
| Weight statement | to 0.025 troy ounces | to 0.1 troy ounces |
| Surface quality | no cavities, smooth | no cavities, smooth |
| Shape | trapezoidal cross-section (cast) | trapezoidal cross-section (cast) |
The target weight of 400 troy ounces for a gold bar corresponds to the classic "London Good Delivery Bar", as used in central bank vaults and in clearing transactions via the LBMA system. The seemingly wide weight tolerances result from the casting process: Good Delivery bars are cast, not minted (cf. melt value calculator).
Mandatory markings on every bar
Every Good Delivery bar must carry the following information, stamped or cast directly into the bar surface:
- Refinery brand (registered logo/name)
- Serial number (unique batch number)
- Fineness (as a per mille figure, e.g. 9950 to 9999 for gold)
- Gross weight in troy ounces
- Year of manufacture
The combination of serial number and refinery brand allows complete traceability of every bar – an essential feature for authenticity testing and anti-money-laundering compliance.
The LBMA Good Delivery List
The heart of the system is the Good Delivery List – a publicly accessible reference list of all refineries approved worldwide. Inclusion on this list is a demanding, multi-stage process:
- The refinery submits sample bars.
- Independent assessors accredited by the LBMA (so-called Referees) analyse fineness, weight, dimensions and surface.
- On passing, a probationary period under observation follows.
- Every five years re-assessment (Proactive Monitoring) is required.
Renowned refineries such as Heraeus, Umicore, PAMP Suisse, Valcambi or the Perth Mint are represented on this list. Inclusion is regarded in the industry as a first-rate quality seal.
Significance for the spot price and the LBMA fixing
The LBMA fixing – the reference price determined twice daily for gold and once for silver – is based exclusively on transactions in Good Delivery bars. The Good Delivery standard is thus directly linked to the spot price: when the media quote "the gold price", they always mean the price for an LBMA-conforming Good Delivery bar, expressed in US dollars per troy ounce.
Melt value of a Good Delivery gold bar (example):
Weight: 400 troy ounces × 31.1035 g = 12,441.4 g gross
Fineness: 995.0 ‰ (minimum) → fine weight ≈ 12,379.2 g
Value: fine weight × spot price ($/g) × EUR/USD rate
Distinction from retail investor products
Good Delivery bars are not designed for the typical retail investor. A 400-ounce gold bar at a gold price of around EUR 90,000 per kilogram represents a value of about EUR 1.1 million – far beyond usual retail investments. Retail investors instead buy certified small bars (1 g to 1 kg) or investment gold in coin form such as the Krugerrand.
Nevertheless, Good Delivery bars are indirectly relevant to every retail investor: Exchange Traded Commodities (ETCs) and funds holding physically backed gold store Good Delivery bars exclusively in accredited vaults.
Responsible Sourcing – the ethical dimension
Since 2012 the LBMA has required its members and suppliers to comply with the Responsible Gold Guidance; the corresponding Responsible Silver Guidance was added in 2018. Refineries must demonstrate annually that their raw metal does not originate from conflict areas and that no human rights violations exist in the supply chain. This framework follows the OECD Due Diligence Guidance for mineral raw materials.
A Good Delivery bar thus carries not only a statement about chemical purity but also about supply chain integrity – an aspect increasingly decisive for institutional investors with ESG requirements.
In brief
The LBMA Good Delivery standard is the global backbone of physical precious metal trading: it defines which bars are tradable without further inspection, which refineries are considered trustworthy and on what basis the daily gold price is determined. Anyone following the silver price or gold price is always moving within a market whose foundation is this standard.