What is “Good delivery”?
“Good delivery” alludes to a list of rules issued by the London Bullion Market Association (LBMA) depicting the characteristics like the level of purity, requirements for a certain level of weight, dimensions, etc. that a bar of gold that is put up for sale must possess. It additionally states the strategies to guarantee the consistency of the refiner’s specifications and the prerequisites for getting registered on LMBA’s list of good delivery.
Good Delivery Gold Bars
Good delivery gold bars are those gold bars that meet the set of requirements that The London Bullion Market Association (LBMA) has set, so that there is no compromise on the quality of gold bars being produced across the globe. Good delivery gold bar prices are set by the LMBA and stand out by being 99.99% pure gold, large in size, and weighing 400 oz. They’re a tad bit cheaper than 1 kg gold bars. These bars are usually used by central banks, in renowned gold markets globally, gold reserves, and the IMF. These bars are also known globally for not having varying weights, dimensions, or purities.
As per the LMBA, the gold content of the bars should be somewhere between 350 troy oz. (23 kg) to 430 troy oz. (34 kg). LMBA doesn’t allow the weights to be stamped on the bar. The total weight of each bar should be a multiple of 0.025 and should be mentioned in troy ounces.
The gold bars, as per the LMBA, should be around 40mm-250 mm long, 15mm – 70mm wide, and their height should be around 10mm – 355mm. The slope at the ends and sides of each bar should be around 5° – 25°
The fineness or purity of each good delivery gold bar should be at least 995 per 1000 fine gold.
The larger surface which is the cast surface atop the mold should be marked with the serial number, refiner’s stamp, fineness, and year in which the gold bar is manufactured. The height of the characters shouldn’t be less than 12 mm to make them legible. LMBA emphasizes on the fact that good delivery gold bars should be appealing with no cavities, blisters, cracks, or dents. To ensure the safety of its buyers, the LMBA instructs to not make the edges sharp to avoid any potential cuts and injuries that could result from sharp edges.
- CASTING METHOD:
As per the LMBA, the gold bars should be manufactured in wither graphite or cast-iron moulds. They should be produced wither by melting grain or by pouring molten metal into the moulds.
LMBA can also ask for the bars to be sent to London for proper scrutiny and inspection. LMBA can also further send the bars out to Referees for a closer inspection to ensure all requirements and specifications of the Good delivery rules are being met.
If any refiner wants to change the specifications issued by the LMBA, they should submit a proposal one month before the start of the manufacturing process. For more information on gold investment, please visit the Gold News website, for updates on gold mining stocks, small caps, gold prices and other related topics.