What is The LBMA?

– Nigel Doolin, Head of Trading at Core Bullion Traders.

The London Bullion Market Association – known simply as The LBMA – was established in 1987.  It is the international trade association representing the global Over The Counter (OTC) bullion market, and defines itself as “the global authority on precious metals”.  At time of writing it has a membership of approximately 150 firms globally, including traders, refiners, producers, miners, fabricators, as well as those providing storage and secure carrier services.

The LBMA is also responsible for the regulation of such areas as refining standards, trading practices, and the certification of the bullion used to make gold and silver bars and coins for investment.

The Gold Fix

As the leading authority on the gold and silver markets, the LBMA holds the intellectual property rights to the silver and gold fixes which are set twice a day. A common trading price is set in pounds (GBP) sterling, dollars (USD) and euros (EUR) by the ICE Benchmark Administration (IBA) at 10:30 GMT and then once more at 15:00 GMT. This electronic method, launched in 2015, replaced the ‘London Gold Fix’ process that had been running since 1919.

Click here to find out more about the London Gold Fix.

LBMA Membership

The London Bullion Market Association is made up of more than one hundred and fifty companies around the world with connections to the London gold and silver markets. Traders, brokers, refiners, mining companies and assaying companies are just some of the types of companies that comprise the membership of the LBMA.

LBMA Good Delivery List

All gold investors need to be assured of the quality of their gold bars and their investment gold should meet the ‘Good Delivery’ standards set by the LBMA. 

The LBMA Good Delivery List is a regularly reviewed list of gold refiners whose adherence to the industry standards has been acknowledged by the LBMA. It is widely accepted as the point of reference when looking for a creditable, high quality gold refiner.  Gold refiners on this list ensure that there are no purity issues with their gold, there is no ‘conflict-gold’ used in their refinery and there is no place for slave-labour within their refinery or supply chain.  The adherence to these (and many other) standards and rules, essentially means that all LBMA Approved Refineries will produce the same quality (and value) gold bars and products.

As Core Bullion Traders only trade in LBMA approved refinery gold, this means that any gold bullion bar or gold coin you buy from us is guaranteed to meet the gold industry’s highest standards.

Core Bullion Traders guarantee this by using our in-house, 8 level testing set-up to verify all gold which comes through our facility.  This state-of-the-art, 8 level testing set-up is one of the most comprehensive testing systems available in Ireland, indeed the only facility which can test gold more precisely than Core Bullion Traders is the Assay Office at Dublin Castle.

LBMA Good Delivery Rules

The LBMA’s Good Delivery Rules are considered the international regulatory standard for gold and silver bullion.

The standard LBMA gold bar weighs approx. 400 troy ounces, and must have a minimum purity of 995.0 parts/ thousand fine gold (99.5%). They must be marked with a serial number, the refiner’s hallmark, its fineness and the year of production.

Nigel Doolin is Head of Trading at Core Bullion Traders – A gold trading company based in Dublin, Ireland – he can be contacted directly at: nigel@corebulliontraders.ie or Tel: +353 (0)1 447 5975