LBMA Good Delivery
Also: Good Delivery, GD bars, LBMA standard
The LBMA Good Delivery standard is the globally recognised quality norm for tradeable gold and silver bars in the institutional wholesale market, setting minimum requirements for fineness, weight, shape and the refinery of origin.
The LBMA Good Delivery standard is the most important quality mark in professional precious metals trading. Bars that meet this standard are accepted on the London gold market and at all major international trading venues without further testing - they are effectively the "trading currency" among institutional investors, central banks and wholesalers.
What does Good Delivery mean?
"Good Delivery" literally means that a bar can be delivered and traded without any additional testing or re-refining. The London Bullion Market Association (LBMA), founded in 1987 as a self-regulating body of the leading London bullion dealers, administers the Good Delivery List - whose origins are far older - and sets out the rules in the Good Delivery Rules for Gold and Silver Bars, which are updated regularly.
The standard defines precise requirements in four areas:
- Fineness - the minimum purity of the metal
- Weight and dimensions - tight tolerances for mass and shape
- Marking - mandatory details that every bar must carry
- Origin - only accredited refineries may produce 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 the nearest 0.025 troy ounces | to the nearest 0.1 troy ounces |
| Surface quality | no cavities, smooth | no cavities, smooth |
| Shape | trapezoidal cross-section (cast) | trapezoidal cross-section (cast) |
The 400 troy ounce target weight of a gold bar corresponds to the classic "London Good Delivery Bar" used in central bank vaults and in clearing transactions through the LBMA system. The apparently wide weight tolerances result from the casting process: Good Delivery bars are cast, not minted (see 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:
- Refiner's mark (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 refiner's mark allows complete traceability of every bar - an essential feature for authenticity testing and for 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 accredited refineries worldwide. Admission to this list is a demanding, multi-stage process:
- The refinery submits sample bars.
- Independent assayers accredited by the LBMA (known as Referees) analyse fineness, weight, dimensions and surface.
- On passing, a probationary period under observation follows.
- Re-verification (Proactive Monitoring) is required every five years.
Renowned refineries such as Heraeus, Umicore, PAMP Suisse, Valcambi or the Perth Mint are represented on this list. Inclusion is regarded within the industry as a first-rank quality seal.
Significance for the spot price and the LBMA fixing
The LBMA fixing - the reference price set twice daily for gold and once for silver - is based exclusively on transactions in Good Delivery bars. The Good Delivery standard is therefore directly linked to the spot price: when the media quote "the gold price", they always mean the price of an LBMA-compliant Good Delivery bar, expressed in US dollars per troy ounce.
Melt value of a Good Delivery gold bar (example):
Weight: 400 troy ounces x 31.1035 g = 12,441.4 g gross
Fineness: 995.0 ‰ (minimum) → fine weight ≈ 12,379.2 g
Value: fine weight x spot price (£/g)
Distinction from retail investor products
Good Delivery bars are not designed for the typical private investor. A 400-ounce gold bar represents a value of over £700,000 at prevailing gold prices - far beyond usual retail investments. Private 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 private investor: Exchange Traded Commodities (ETCs) and funds that hold 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 there are no human rights violations in the supply chain. This framework is based on the OECD Due Diligence Guidance for mineral supply chains.
A Good Delivery bar therefore carries a statement not only about chemical purity but also about supply-chain integrity - an aspect that is increasingly decisive for institutional investors with ESG requirements.
In brief
The LBMA Good Delivery standard is the global backbone of the physical precious metals trade: it defines which bars are tradeable without further testing, which refineries are considered trustworthy, and on what basis the daily gold price is determined. Anyone following the silver price or gold price is operating in a market whose foundation is this standard.