LBMA Good Delivery
LBMA Good Delivery is the international benchmark standard that defines the physical, chemical, and logistical specifications for gold and silver bars accepted in the professional bullion market.
It establishes the requirements for refineries, vaults, and custodians that handle institutional-grade bullion, ensuring consistency, credibility, and global liquidity in physical settlement.
Definition and Role
The London Bullion Market Association (LBMA) maintains and enforces the Good Delivery standard, which specifies the required form, weight, fineness, and markings of gold bars traded between accredited institutions.
Bars conforming to this standard are known as Good Delivery bars and are recognized as the highest form of tradable gold in wholesale markets.
The system allows institutions to transact and settle gold trades without physical re-assay or re-certification, as every Good Delivery bar carries verified identity and purity under LBMA supervision.
Physical Specifications
To qualify as LBMA Good Delivery, a gold bar must meet strict technical criteria:
| Parameter | Specification |
|---|---|
| Weight | 350 to 430 troy ounces (approximately 10.9–13.4 kg) |
| Minimum Fineness | 995.0 parts per thousand of gold (99.5%) |
| Dimensions | Length: 210–290 mm; Width: 55–85 mm; Height: 25–45 mm |
| Shape | Trapezoidal, produced by casting |
| Markings | Serial number, refiner’s hallmark, assay mark, year of manufacture, and purity |
All bars are stamped at the time of casting, and serial numbers are recorded by the refiner and custodian for traceability.
Refinery Accreditation and Compliance
Only refineries listed on the LBMA Good Delivery List are authorized to produce bars recognized as Good Delivery.
To achieve and maintain accreditation, refiners must:
- Demonstrate consistent production quality and assay accuracy;
- Operate under secure logistical and environmental standards;
- Undergo regular Proactive Monitoring (PAM) audits;
- Comply with OECD Due Diligence Guidance for responsible sourcing;
- Submit independent assay samples for verification by LBMA referees.
Accredited refiners include facilities across Switzerland, the UAE, Singapore, Japan, and major global production centers.
Testing and Verification
Bars traded or stored in LBMA-accredited vaults are periodically re-weighed and visually inspected to ensure conformity.
If a discrepancy in weight, shape, or marking is identified, the bar may be withdrawn from the Good Delivery system and re-assayed.
LBMA-appointed referees conduct independent checks on refineries and vault operators.
Assay laboratories maintain calibration under ISO/IEC 17025 standards to guarantee uniform analytical precision across the network.
Market Function and Settlement Role
The Good Delivery system underpins the London precious metals clearing network, facilitating settlement between banks and custodians through book-entry transfers rather than physical movements.
Because each Good Delivery bar is uniquely identified and certified, ownership can be transferred electronically within the London Precious Metals Clearing Limited (LPMCL) framework without leaving the vault.
This mechanism allows institutional gold markets to function efficiently, maintaining liquidity, auditability, and consistent pricing across jurisdictions.
Compliance and Responsible Sourcing
In addition to physical quality, the LBMA standard incorporates ethical and compliance obligations.
Refineries and custodians must follow the Responsible Gold Guidance, which enforces due diligence on supply chains to prevent the use of gold linked to conflict, money laundering, or human rights violations.
The integration of compliance within the Good Delivery framework ensures that the gold circulating through LBMA channels is not only technically sound but also ethically verified.
Institutional Relevance
LBMA Good Delivery remains the foundation of institutional gold custody and settlement.
It provides the common language through which vaults, refineries, central banks, and investors recognize and transact physical bullion globally.
By defining measurable and enforceable standards, it ensures that each bar represents both verified value and regulatory integrity — the essential conditions for trust in the global gold market.