Established by the Bank of England in 1750, it gave the need to standardize the sizes, dimensions, and purity of the gold bars it stored in its vaults and with which it traded in the market.
The way to do it was to establish a certification granted to a series of manufacturers and refineries, which established that the ingots they produced were apt to be traded on the market.
Strictly, “Good Delivery” could be defined as a series of standards issued by the London Bullion Market Association (LBMA).
It was an organization made up of the main banks that were members of the London gold market, which the Bank of England commissioned to setting the price of gold in 1919 and manage the list of accredited manufacturers and refineries.
These original members of the LBMA determined, in 1934, the need to provide the bars with a special image that would guarantee international markets that they were gold bars produced following the standards required by the London market.
Therefore, the so-called “Good Delivery Rules” regulate the physical characteristics of gold and silver bullion to be traded on the London market. The LBMA also manages lists of manufacturers and refineries that are accredited to manufacture gold and silver bars with the “Good Delivery” mark.
Physical characteristics of the ingots
Both gold and silver ingots are subject to a series of requirements in terms of weight, measurements, composition, and marks engraved on their surface, determined in the so-called “Good Delivery Rules.”
As far as its manufacture is concerned, iron or graphite moulds should be used. The melting system must be pouring the metal in a liquid state or melting granules in an induction tunnel system. A refinery must request prior authorization from the LBMA if it wants to use another method to melt the ingots.
Ingots must be trapezoidal, with a sufficient width at the bottom, to ensure that they can be stacked securely. The surface must be as smooth as possible, without irregularities or cracks, to prevent the accumulation of dust and dirt on them from affecting the total weight. The edges must not be sharp to avoid cuts when handling them.
In the case of silver ingots, the existence of hammer marks, used to refine the surface, is admitted, as long as they are not excessive and affect its shape.
Gold bullion
Its weight must range between 350 troy ounces (10.9 kilos) and 430 (13.4 kilos). Said weight must be expressed in troy ounces (31.1 grams each) in multiples of 0.025 ounces. The minimum required purity is 995 thousandths.
They must be trapezoidal, with authorized dimensions, on their largest face, between 210 and 290 millimeters in length, 55 and 85 millimeters wide, and 25 and 45 millimeters thick. The angle formed by the lateral faces must be between 5 and 25º.
As for the marks that they bear on their surface, they must include the serial number of the ingot; the brand of the assayer or refiner; a four-digit number, or a five-digit number if it includes a decimal (separated by a comma or period), indicating purity; and the year of manufacture.
Who verifies compliance with the standards?
In addition to establishing the “Good Delivery Rules,” the LBMA has named a group of five companies, known as “Good Delivery Referees,” who are in charge of arbitration, as their name indicates.
These rules determine the weight, dimensions, and shape of banked gold and silver bars and creating a list of authorized refiners and manufacturers,
Its function is to provide technical advice to companies that want to become part of the “Good Delivery List” and proactively monitor those already on it.
