Week 8.2
Bars accepted by LBMA(London Bullion Market Association) as Good Delivery.
Here is the list of 400 oz gold bar and 1000oz silver bar accepted by LBMA as Good Delivery.
What does it mean when the Precious Metal brand you brought is good for LBMA Delivery?
Here is the summary of the procedure that refiner must go through in order to be certified as LBMA Good Delivery.
1. Application for listing
Company must be in existence for 5 years and involved in metal refining operation not less than 3 years.
Company’s annual refining production of not less than 10 tonnes of gold or 30 tonnes of silver.
Company’s with net tangible asset more than $10 million pounds sterling.
The application fee is £1400 + VAT (17.5%).
LBMA reserve the right to arrange a short inspection visit before accepting the application. Cost of inspection visit, including business class flights, local subsistence and travel must be paid by applicant.
2. Technical Assessment Procedure
LBMA will check the applicant assaying capability (stage 1) fee
LBMA will exam the applicant and test it bars. (stage 2) fee
Stage 1
LBMA will send a reference samples (cross checked by multiple referees) to applicant
Gold: 24 samples of 10 gram each with 995.0 to 999.9 parts per thousand
Silver: 10 samples 999.0 to 999.9 parts per thousand
Applicant must be able to determine correctly the exact gold or silver content on each sample within a small margin of error.
Stage 2
Applicant must send 10 bars to LBMA for testing.
Each bar is 395 to 405 oz for gold and 900 to 1050 troy oz for silver.
Applicant have to bear the freight and insurance cost to LBMA.
The bar will be sent to referee examiner and extensively tested. Some of the test includes Visual inspection, weighting, assaying of cut, drilling samples taken from each bar. Full melt assays on 4 to 5 bars.
Fees Payable by Good Delivery Applicants (in £ sterling – subject to VAT where indicated) Fees (all fees are payable to the LBMA) | Gold | Silver |
On Application (plus VAT at the applicable rate) | 1,400 | 1,400 |
Stage 1: Assay Test (not normally subject to VAT) | 11,500 | 4,500 |
Stage 2: Testing of Applicant‟s bars (not normally subject to VAT) | 13,100 | 13,100 |
Total | 26,000 | 19,000 |
Result
Upon passing all tests, the applicant details will be included on the Good Delivery list.
3. Proactive monitoring
Applicant may be required to send in a dip sample of their normal production melt. The sample will meet the stringent criteria within a small margin of error.
Annual monitoring fee of £1000/
Membership fee = £6000/- per year, Associate Member is £2500/- per year. Subjected to UK VAT. 17%
Upon reading this article, you realize that the cost of getting a LBMA good delivery certified is very high and not many refiners has the capabilities and annual capacity to do it. That explains that only countries with Precious Metal mining or deals with high volume of precious metal have refiners that are accepted as LBMA Good Delivery. That why you need to pay for premium on gold and silver with brand names listed in LBMA Good Delivery List.
Thus, buy Engelhard, Johnson Matthey, PAMP, Perth Mint, Canada Mint, etc. It’s worth the money.
Once sold as LBMA gold....if anything happen to the company or bank, the LBMA gold still valuable? For example public gold LBMA
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