Not every gold bar is a “good delivery” gold bar. This may sound like a tagline for a chocolate commercial, but it’s actually a reference to the overall quality of gold bars according to London Bullion Market Association (LBMA) standards. The LBMA is an international trade association that’s considered the leading worldwide authority on precious metals. Below, we go over what the LBMA specifications are for good delivery gold bars. Before they buy gold bars, San Diego residents should be aware of these standards.
According to the LBMA, “good delivery” gold bars must have a minimum gold content of 150 fine troy ounces. The maximum amount of gold content is 430 fine troy ounces. The LBMA also requires the weight of the bars to be:
• Listed in troy ounces in multiples of 0.025
• Rounded to the nearest 0.025 troy ounce for convenience
A good delivery gold bar will also need to be weighed by an official LBMA-approved weigher. For this reason, the LBMA “strongly suggests” any bars being weighed for the purpose of good delivery certification not be marked because if the weight recorded by an official weigher differs from what’s marked, the mark will need to be changed.
Length, Width, & Height
Good delivery gold bars will also need to be within certain dimensions. The ones specified by the LBMA are:
• Length across the top – 250mm (plus or minus 40mm)
– Undercut*: 5–25 inches
• Width across the top – 70mm (plus or minus 15mm)
– Undercut: 5–25 inches
• Height – 35mm (plus or minus 10mm)
*The degree of the side slope at the ends of bars
The LBMA also sets good delivery standards for gold bar firmness. In order for a gold bar’s firmness to be considered acceptable, it needs to be—at the very least—995.0 parts per thousand fine gold.
A gold bar has two primary surfaces. The largest one is the cast surface at the top of the mold. This is the one that has to be marked, according to the LBMA, for good delivery designation.
Specifically, the LBMA wants to see the following marks on gold bars being evaluated for good delivery status:
• The serial number
• The assay stamp of the refiner
• The fineness*
• The year of manufacture
*Rounded to four significant figures
The year of manufacture doesn’t always have to be marked separately. The one exception is if it’s already designated in the first four digits of the bar’s number.
The London Bullion Market Association also considers the appearance of gold bars when determining if they meet good delivery standards. Typically, for gold bars to be considered good delivery, the LBMA wants to see the following characteristics in appearance:
• No cavities
• No cracks or holes
• No blisters
• No extreme shrinkage
Gold Bar Edges
Also, the edges of good delivery gold bars shouldn’t be sharp. This is both for appearance and safety, since bars with sharp edges can be dangerous to physically handle. With gold bar edges, the LBMA wants to see ones that are smooth enough to allow the bars to be inspected and safely handled and stacked.
Whether you’re looking for expert advice on precious metals or you’re searching for the best place to buy gold in San Diego, make sure to work with trustworthy precious metal dealers who offer high-quality service and have years of experience. Call on the industry-leading professionals at First National Bullion when you’re ready to invest in precious metals, including gold, silver, platinum, and palladium. Give us a call today at 858-666-6570.
The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.