International Commercial Contracts Smart Contracts

Cross Border Smart Contracts

A brief outline for enhancement the knowledge of gold contracts.

International Commercial Contracts of Manufactured Goods (ICC).

Sale and Purchase Agreement (SPA) of semi-finished gold mining, to be transformed into gold bullion.

An international business transacción require a precise and detailed underlying contract.The contract is divided into two parts Specific conditions and General conditions. The contract is primarily directed at contracts for sale and purchase goods . Failing contrary agreement between the parties the contract subjetcs the transaction to the United Nations Convention for the International Sale of Goods, known as the Vienna Convention of 1980. The parties are invited to choose the appropriate trade term under the Incoterms rules and to specify the relevant place or port as precisely as posible. It is important to keep in mind that the time of delivery , payment conditions, documents to be provided by the seller and buyer. The parties may agree, that the goods will remain the property of the seller until complete payment ( retention of title clause). The rest of important clauses are: warranty to consumers, inspection and examination, non-infringement if intelectual property rights as element of conformity and resolution of disputes.

a) Specific conditions :

a.1) Seller and buyer identifications

a.2) Goods sold : commodity, raw materials

Gold Doré, in accordance with the following terms, conditions, mutually agreed commercial covenants and acceptance of this final Agreement:  Form : Doré Bars of 5Kg or larger . Fineness: 94% or better with assay certificate to accompany delivery of commodity to buyer’s refinery.  Hallmark : None . Origin : West Africa  Location : Accra, Ghana.

a.3) Contract Price

Price : (Price will be determined by the 2nd day fix of the London Bullion Market Association “LBMA” minus discount on the day of settlement),  Gross: 10% Net 8% : Commission 2%  Commissions : Buyer broker commission is 1 of each sale.: Seller broker commissions 1 of each sale.

a.4) Delivery terms

 Delivery : CIF/DAT at Seller’s expense to Jarkarta International Airport to the Gold Doré is in the name of the “Consignee,” i.e.; “Buyer” when shipped  Quantity Minimum : 100 Kg x per month x 12 month’s annually . Contract Duration : One to Three years with possible rolls and extensions.

a.5) Time of delivery



No. Date Year Quantity Unit of Measurement Delivery Airport Refinery

1 April 2018 100 Kg Kg Jarkarta International Airport

2 May 2018 100 Kg Kg Jarkarta International Airport

3 June 2018 100 Kg Kg Jarkarta International Airport

4 July 2018 100 Kg Kg Jarkarta International Airport

5 August 2018 100 Kg Kg Jarkarta International Airport

6 September 2018 100 Kg Kg Jarkarta International Airport

7 October 2018 100 Kg Kg Jarkarta International Airport

8 November 2018 100 Kg Kg Jarkarta International Airport

9 December 2018 100 Kg Kg Jarkarta International Airport

10 January 2019 100 Kg Kg Jarkarta International Airport

11 February 2019 100 Kg Kg Jarkarta International Airport

12 March 2019 100 Kg Kg Jarkarta International Airport

a.6) Retention of title


Seller confirms and warrants that the Title of the Gold to be sold herein shall be free and clear of any and all liens and/or encumbrances and of legal origin.

a.7) Payments conditions


Payment for the commodity shall be made by Wire transfer to the Seller’s Designated Bank Account, within 72 hours of final assay/refining. Buyer and Seller have agreed that Buyer shall provide an acceptable Payment Guarantee in favor of the seller for the term of the contract. Any rolls or extensions shall be negotiated at the time of renewal or extension, togetherwith the allowable discount.

Payment Guarantee /Bank Instruments:

To guarantee the payment of each delivery, the Buyer / Buyer’s bank undertakes to open an Ir revocable “Good End Execution,”MT 760 Operative Standby Letter of Credit of Payment Guarantee, to the seller’s bank from strong bank.

A Payment guarantee shall be a mutually acceptable bank instrument and delivered by SWIFT transmission (SBLC –by SWIFT MT760) to Seller’s nominated account ( preorgative of the Seller ). Buyer’s payment guarantee shall be operative for the period of the contract.

Payment Documents will be as follows:

Certificate of Origin

Assay Report (Certificate of Purity)

Certificate of Ownership

Export Certificate

Airway Bill of Lading (Buyer advised three (3) days in advance of shipment)

Declaration that the product is free and clear and of noncriminal origin, unencumbered and free of any liens, transferable and exportable. (Certificate of Movement)

a.8) Documents


Each delivery shall be accompanied by a Bill of Lading with all necessary documentation in accordance with international law, and includes:

1. Certificate of Origin

2. Assay Report (Certificate of Purity)

3. Certificate of Ownership (Title/Ownership in the name of the Buyer)

4. Export Certificate

5. Airway Bill of Lading (Buyer advised three (3) days in advance of shipment)

6. Declaration that the product is free and clear and of noncriminal origin, unencumbered and free of any liens, transferable and exportable. (Certificate of Movement

a.9) Procedures


1. Seller will ship CIF/DAT at Seller’s expense to Jarkarta International Airport

2. Buyer shall receive and forward gold Doré utilizing an Insured Secure and Bonded Courier; pay any/all import taxes (duties), Value Added Taxes (VAT), and/or delivery fees to the refinery.

3. Gold Doré shall be deposited into the account of the Buyer until settlement by Buyer to Seller within 72 hours after final assay/refining.

a.10) Cancellation Date

a.11) Liability for delay

a.12) Place of examination at arrival

a.13) Maximum delay for notificación of non-conformity

a.14) Limitation of liability for non-conformity

a.16) Applicable Law


In any action or proceedings where the enforcement of an arbitral award of arbitration has fail ed, the Laws of the United States shall apply and venue of action shall be in any Court of competent jurisdiction within the United States of America.

a.17) Resolutions od Disputes


In the event of dispute involving to or related to any portion of this Agreement and the same cannot be resolved in an amicable manner, each party of this Agreement shall have the right to seek legal recourse, and the Party seeking relief shall be bound by the laws of the Party bringing such action, or in any Court of Competent jurisdiction.

All disputes and settlements arising out of or in connection with the present Agreement shall be governed, and settled by one or more arbitrators that will be appointed or designated in accordance with the aforementioned rules of arbitration.

b) General Conditions






1. The Drug Trafficking Offenses Act 1986,

2. The Criminal Act 1988,

3. The Prevention of Terrorism (Temporary Provisions) Act 1989,

4. The Criminal Justice (International Co-operation) Act 1990,

5. The Criminal Justice Act 1993, and the Money Laundering Regulations 1993, or any other illegal or criminal activity.

6. And accordingly, each party to this agreement indemnifies each other against any such allegations which or may not be made in the future.




The Buyer agrees that it is in compliance with all applicable antiterrorist financing and asset control laws, regulations, rules and executive orders, including but not limited to, the USA Patriot Act of 2001 and Executive Order 13224, and the Global Terror ism Sanctions Regulations set forth in 31 CFR Part 594.


Neutral Legal Standard for International contracts

When choosing the applicabe law, parties may wish to agree on neutral solutions, instead of submitting the contract to the domestic law of one of the parties. When this is the case they may opt for the law of a third country or may decide to submit their contract to a national rules of law, such as “principles of law generally recognized in international trade”, “Unidroit Principles on International Comercial Contracts”, or othe transnational rules.

The Good Delivery Rules of Gold Bars at a glance

Processes related to gold production: smelting, refining and assaying gold.


Smelting, in simple terms, transforms gold-bearing ore ("gold ore") into semi-pure dore bars.

It is the process for extracting gold from its ore.

The procedure involves melting the gold ore in a high-temperature furnace or, more crudely, in a melting pot brought to a very high heat. A chemical substance called "flux" is then added to the molten material.

The flux bonds with the contaminants causing the contaminants to separate from the ore and float on top of the molten gold. The flux-contaminant mixture (known as "slag") is poured off and hauled away as solid waste.

The liquid gold that remains is then poured into moulds and allowed to cool and harden into solid gold bars. The resultant low-purity bars - referred to as "dore bars" - are then transported to refineries all over the world for further purification and processing.


Refining, in simple terms, transforms dore bars into higher-purity gold bullion.

It is the final stage of gold production and involves removing impurities that remain after the smelting process.

The two refining methods most commonly employed are known as the "Miller process" and the "Wohlwill process".

The Miller process involves bubbling chlorine gas through re-melted dore metal. The impurities ("slag") separate into a layer on the surface of the molten purified gold and are siphoned off. The process is rapid and simple; however, it produces gold to a purity of 99.5% only.

For higher purity gold, the Wohlwill process is utilized as well. The chlorine-processed bars are cast into "anodes" and placed into an electrolyte solution of hydrochloric acid and gold chloride.

An electric current is passed thru the "soup", which causes the gold to migrate to a negatively charged "cathode" at a purity of 99.99%. The cathode is then restored to a pure metallic state, leaving the impurities ("slag") as a separate residue which can be easily removed.


Assaying, in simple terms, is the testing of a substance to determine its ingredients or quality.

In the case of bullion, an assay is performed to determine whether the gold meets the required purity standards and content.

The three most commonly used gold assaying techniques, in order of accuracy, are the following:

1) Fire Assay (accurate to 0.2 parts per 1,000 / completely destructive of sample)

2) ICP Mass Spectrometry (accurate to 1 part per 1,000 / non-destructive of sample)

3) X-Ray Fluorescence (accurate to 2-5 parts per thousand / non-destructive of sample)

Let's examine each in turn:


X-ray fluorescence is a "non-destructive" technique used to determine the chemical analysis of a sample. It does this by measuring the secondary (or fluorescent) X-ray emitted from a specimen that has been "excited" by a high-energy X-ray source.

When performed by an experienced technician, X-ray fluorescence can produce extremely accurate results. It is also a very quick technique, taking about three minutes to complete; the results can then be printed out by computer.

And, of course, being a non-destructive process, it is safe for applications where there is a need to maintain the integrity of the sample. For finished goods, for example.

The primary drawback, though, is that this technique is unable to deliver an accurate result for samples with chemical surface treatment or electroplating. X-ray fluorescence, therefore, tends to be restricted to relatively flat specimens.

Bullion Bank

The term "Bullion Bank", in its narrowest sense, refers to Banks that are licensed to accept gold bullion on deposit and to sell the same into the market. The Banks - which are located exclusively in North America and Europe - are full members of the London Bullion Market Association and trade as wholesale bullion suppliers of GLD gold.

The LBMA does not publish an official directory of Bullion Banks, but any listing would doubtlessly include Barclays, HSBC, Citibank, BNP Paribas, Commerzbank, JPMorgan Chase, Scotiabank, Credit Suisse and UBS. . .just to name a few.

1) Bullion Banks operate exclusively in the London Wholesale "Over-the-Counter" Bullion Market selling GLD bars at prevailing market rates. The Banks unconditionally guarantee the integrity of their GLD product - which, of course, is merely stating the obvious since a Bank's pronouncements or deeds always carry "fully banking responsibility"; were it otherwise, the financial system would collapse.

2) Bullion Banks have no application in the off-market trade of discounted, GLD standard bullion; the reason being only Bank-Registered GLD bullion is assigned a Bullion Officer. It's real simple: No GLD gold; no bullion account; no Bullion Officer. And all those "private treaty" offers that promise Bullion Officer involvement - well, take it from me, they ain't worth a plug nickel!

3) When you deposit your GLD with a Bullion Bank, what you receive, in return, is not a Bank Safekeeping Receipt; that's because no custodial safe-keeping arrangement is created. Legally, you are loaning your bullion assets to the Bank; you become, therefore, an unsecured creditor of the Bank, in the same way that you become an unsecured creditor when you make a cash deposit at your neighborhood Bank. The Bullion Bank issues you, instead, a legally enforceable "IOU" in the form of a Certificate of Deposit.

4) GLD bars deposited with a Bullion Bank are held in an "unallocated" account. This is an account where specific bars are not set aside; the depositor, instead, has a general entitlement to the return of equivalent GLD metal only. In other words, upon withdrawal, you will not receive your original bars back, but other "replacement" GLD bars. Of course, GLD gold is a fungible asset; all gold bars are 100% interchangeable.

5) Importantly, Bullion Banks only accept for deposit - and only offer for sale - the 12.5 KG formatted "bricks"; this despite the fact that LBMA-accredited refineries manufacture GLD bars in a wide range of sizes and formats. Indeed, 1 KG bars tend to be the most popular size because of the ease in stacking and transporting the relatively lightweight wafer bars.

6) Bullion Banks typically invest in stand-alone bullion depositories to serve the needs of their GLD customers. A good example is Kloten Depository, Switzerland, which is partially owned by UBS AG. Of course, traditional bank vaults tend not to be satisfactory repositories for storing bullion: the handling and movement of GLD bars - 12.5 Kilograms is no trifling weight - require the use of heavy-duty forklift trucks. Needless to say, you can't maneuver a forklift truck inside too many bank vaults!

7) Non-GLD bullion can be, and often is, stored in a Bullion Bank - but under a Bank custodial safekeeping arrangement only. Of course, it makes perfect sense to hold your Non-GLD assets in a Bullion Bank ("I can't think of a safer place to store gold!"). And the Bullion Banks, for their part, are only too happy to exact hefty storage fees. Keep in mind, though, that storage of gold bars in a Bullion Bank does not convert non-GLD bullion into GLD. It's still non-GLD product.

8) So how do Bullion Banks make money? By selling their depositor's gold, of course - OVER AND OVER AGAIN! Allow me to explain: Like regular fractional banking, Bullion Banks are not required to keep the total value of their GLD deposits in physical bullion: The Banks maintain only a fraction of the gold in their depositories, knowing full well that not all their customers will request the withdrawal of their gold bars at the same time. Of course, this creates a potential shortage of physical gold and a corresponding increase in the supply of paper gold.


The bullion market is awash in Buyers seeking to purchase product on CIF terms of delivery. Typically, CIF Dubai or CIF Zurich.

Under CIF delivery, of course, the Seller is responsible for shipping the goods to the Buyer's country of destination. In-country transportation costs to the Buyer's refinery and refinery charges are at the Buyer's expense, with payment after final assay.

Non-refined product - dore bars, gold nuggets and the like - is typically sold on a CIF delivery basis. There are sound reasons for this, foremost among which is the fact that the vast majority of Sellers in this marketplace neither hold, nor qualify for, a metal account with a reputable refinery.

Bullion, on the other hand, is normally sold on a FOB basis. The reason is that bullion Sellers typically hold a metal account with an LBMA-accredited refinery and regularly engage the refinery to maintain their product's Assay Reports within the five (5)-year "validity" period.

Thus, when it comes time to sell their product, these Sellers turn to their refinery to oversee the verification process; the re-confirmation of GLD status, after all, can be performed with relative ease at the refinery premises or at the Seller's own warehouse using the refinery's mobile team of Assayers.

That being the case, Bullion Sellers are quick to spurn CIF shipping terms as unnecessary and, more importantly, potentially fraught with risk. That's because CIF delivery requires that Sellers forgo payment and a fresh Assay in their home country and, instead, transfer possession of their goods to a Buyer in a foreign country in order to permit physical testing of their product at the hands of a refinery unknown to the Seller - a refinery that may well lack LBMA accreditation.

Note: The exception is gold bullion held in one of the "outlier" countries, like Iran or, possibly, Korea right now. Bullion Sellers in those countries are more receptive to supplying product on a CIF basis, given the difficulties in attracting trade to their home shores.

CIF Buyers would, therefore, be well-advised to keep to the (non-refined) dore market. And avoid bullion opportunities altogether.


A bar serial number is the unique, sequential "identifier" struck on a gold bar by an LBMA-accredited refiner at the time of manufacture. The serial number - which may include both numbers and letters - is recorded by the refinery and registered with the LBMA.

1) Bar serial numbers serve three (3) primary purposes:

(i) Refined bars are, in all respects, identical when they come off the production line. Serial numbers allow you to identify and differentiate the interchangeable GLD bars, which, in turn, facilitates the process of ownership and title transfer.

(ii) Registered serial numbers act as a deterrent against theft and counterfeiting. Stolen or irregular product can be readily identified through record checks with the LBMA.

(iii) Serial numbers, sequentially applied, are valuable for maintaining quality control during the refining process. Should a defect be found in the production of a particular batch of product, the serial number will identify the particular bars affected.

2) Under the LBMA's "Good Delivery Rules", bar serial numbers may comprise up to eleven (11) numbers or letters of the alphabet. Moreover, since 2008, the four-digit "year of manufacture" must be incorporated as the first four (4) digits in the serial number.

3) Each LBMA-accredited refiner applies its own unique "serial numbering system" to its production stock. The serial numbers are struck on the top surface of the bar - which is the larger of the two main surfaces (technically, the cast surface at the top of the mould) - using conventional "pressure" stamping or dot matrix "pneumatic" punching.

4) Serial numbers allow you to identify the name/location of the LBMA refinery that manufactured the bars and the date of production. Serial numbers, though, do NOT identify the bar owner or provide information about the chain of title. The serial numbering system, after all, is not a title registry. To determine ownership you need to examine the Certificate Ownership, which is the formal Deed of Title. The Certificate of Ownership identifies the legal owner of record and specifies the precise bars titled to the bullion owner, referencing the bar serial numbers involved.

5) Keep in mind that non-LBMA-accredited refiners are free to stamp serial numbers on their freshly minted gold bars. The difference, though, is that LBMA-accredited refiners are REQUIRED to stamp sequential serial numbers on every bar that comes off their production run. And, more importantly, only serial numbers struck by LBMA-accredited refiners are registrable with, and verifiable by, the LBMA.

6) Non-LBMA-accredited refineries may sometimes stamp their bars with internationally recognized hallmarks under licensing arrangements with the GLD refiner or hallmark owner.

The LBMA recognises that Good Delivery Refiners may need to comply with national standards regarding the production of gold bars, in order to facilitate the international distribution and acceptability on technical grounds of standard bars produced.

Dr Jose Luis Cavalieri

Cross Border Associates

Refiners whose bars have been accredited by the LBMA as meeting the minimum standards for trading on the London market appear in the Good Delivery List.

The LBMA produces Good Delivery Lists for gold and silver bars; detailing the names of accredited refiners, their listing date and the marking details of their bars. Because of the stringent assaying and bar quality criteria that applicants must satisfy to attain accreditation, the Lists are universally recognised as the de facto standard for the quality of gold and silver bars.

The List is used by many markets and exchanges for defining, in whole or in part, the deliverable brands within their jurisdictions. Recently, a number of exchanges have become licensed for this use.

Current gold and silver Good Delivery Lists

The Current Lists show refiners of gold and silver whose large bars were found to meet the required standard when originally tested. Listed refiners are proactively monitored on a three-year cycle to ensure that their assaying and refining capabilities continue to meet the required standard. In addition, the refiners’ financial and refined production data is reviewed annually.

It should be noted that inclusion in the Current list does not constitute or imply any representation or warranty by the LBMA as to creditworthiness or as to the services or goods supplied or quality or compliance with any specification relating thereto. No liability for direct or consequential loss, howsoever caused, whether by negligence or otherwise, whether by use of this list or reliance thereon, is accepted by the LBMA. If a bar bears more than one assay stamp, the lowest figure will be taken.

Former gold and silver Good Delivery Lists

The Former Lists include:

Refiners who no longer produce bars at the locations listed;

Refiners whose bars are no longer accepted as Good Delivery by the London Bullion market;

Bars whose brand mark has been changed (in which case the current brand mark is described in the Current Gold or Silver List).

Assayer-only companies which were previously granted Good Delivery status. Refiners are now expected to have the ability to assay as well as refine to the required standard.

However, bars produced by these refiners prior to their transfer to this list on the date given below continue to be acceptable as Good Delivery. The LBMA reserves the right to de-list bars after an appropriate period of time in cases where production has ceased.

Changes to the List

When a current refiner makes a change to its bar, either in terms of dimensions or markings, the existing list entry is replaced by the revised version, with the older version being transferred to the Former List. The Former List contains entries of both transfers of a particular bar produced by a Good Delivery refiner and also that of the refinery itself when its bars are no longer considered acceptable in the London Bullion market.

January, 2019 (Winter Edition) WORLD DIRECTORY OF LBMA-ACCREDITED REFINERIES Compiled by Country/Region

Note: The following is a complete listing of the current LBMA-accredited (gold) refineries worldwide as of December 27, 2018 - compiled by country and region. Please visit the LBMA's website ( for the latest revisions/updates.


ABC Refinery - Sydney

Western Australian Mint trading as The Perth Mint – Newburn


Umicore SA Business Unit Precious Metals Refining - Hoboken


AngloGold Ashanti Mineração Ltda - Nova Lima

Umicore Brasil Ltda - Guarulhos


Johnson Matthey Limited - Brampton

Royal Canadian Mint - Ottawa

CCR Refinery - Montréal


Daye Non-Ferrous Co. Limited - Huangshi City

Inner Mongolia Qiankun Gold and Silver Refinery Share Co. Limited - Huhhot

Jiangxi Copper Company Limited - Guixi City

Great Wall Precious Metals Co., LTD. of CBPM - Chengdu

The Refinery of Shandong Gold Mining Co., Ltd - Laizhou City

Sichuan Tianze Precious Metals Co. Ltd. - Chengdu

Shandong Zhaojin Gold & Silver Refinery Co Ltd - Zhaoyuan City

Zhongyuan Gold Smelter of Zhongjin Gold Corporation - Sanmexia City

Zijin Mining Group Co. Ltd - Shanghang


Allgemeine Gold- und Silberscheideanstalt A.G. - Pfrozheim

Aurubis AG (formerly Norddeutsche Affinererie AG) - Hamburg

C. Hafner GmbH + Co. KG - Pforzheim 3

Heraeus Precious Metals GmbH - Hanau

Heimerle & Meule GmbH - Pforzheim


Heraeus Ltd Hong Kong - Fanling

Metalor Technologies (Hong Kong) Ltd - Kwai Chung


MMTC-PAMP India Pvt. Ltd. - Mewat


PT Aneka Tambang (Persero) Tbk (ANTAM) - Jakarta


Chimet SpA - Arezzo

Italpreziosi SpA – Arezzo

TCA Precious Metals Refining - Capolona


Asahi Pretec Corp. - Kobe City

Ishifuku Metal Industry Co., Ltd. - Soka

Japan Mint - Osaka

JX Nippon Mining & Metals Co., Ltd. - Saganoseki

Matsuda Sangyo Co. Ltd - Iruma

Mitsubishi Materials Corporation - Naoshima

Mitsui Mining and Smelting Co., Ltd. - Takehara

Nihon Material Co. Ltd. - Noda City

Sumitomo Metal Mining Co., Ltd. - Saijo

Tanaka Kikinzoku Kogyo K.K. - Hiratsuka

Tokuriki Honten Co., Ltd. - Shobumachi


KazZinc Ltd - Ust-Kamenogorsk


LS-Nikko Copper Inc - Onsan


Kyrgyzaltyn JSC - Karabalta


Met-Mex Peñoles, S.A. - Torreon


Schöne Edelmetaal - Amsterdam


Bangko Sentral ng Pilipinas (Central Bank of the Philippines) - Quezon City


OJSC Novosibirsk Refinery - Novosibirsk

JSC Ekaterinburg Non-Ferrous Metal Processing Plant - Verkhnyaya Pyshma2

OJSC Krastsvetmet- Krasnoyarsk

OJSC Kolyma Refinery - Khasyn

Moscow Special Alloys Processing Plant - Moscow

Prioksky Plant of Non-Ferrous Metals - Kasimov

SOE Shyolkovsky Factory of Secondary Precious Metals - Shyolkovo

JSC Uralelectromed - Verkhnyaya Pyshma


L’azurde Company For Jewelry - Riyadh


Metalor Singapore - Singapore City


Rand Refinery Limited - Germiston


Sempsa Joyeria Plateria SA - Spain


Boliden AB - Skelleftehamn


Argor-Heraeus SA - Mendrisio

Cendres + Métaux SA - Biel-Bienne

Metalor Technologies SA - Marin

Pamp SA - Castel San Pietro

Valcambi SA - Balerna

PX Précinox SA - La Chaux-de-Fonds


Solar Applied Materials Technology Corp. - Kuang Tien


Atasay Kuyumculuk Sanayi Ve Ticaret A.S. - Istanbul

Nadir Metal Rafineri San. Ve Tic. A.Ş. - Bahcelievler

Istanbul Gold Refinery - Kuyumcukent


Asahi Refining USA - Salt Lake City

Metalor USA Refining Corporation - North Attleboro

Kennecott Copper Utah LLC - Magna

Republic Metal Corporation - Miami, Florida


Almalyk Mining and Metallurgical Complex (AMMC) - Almalyk

Navoi Mining and Metallurgical Combinat (NMMC) - Navoi

The Good Delivery Rules set out every aspect of the Good Delivery administration including the specification standards for London-traded gold and silver bars.

The Good Delivery Rules provides information for existing refiners and the banks that work with them, as well as the necessary guidance for refiners seeking accreditation.

Only bars that meet Good Delivery standards are acceptable in the physical settlement of a loco London gold or silver transaction. The high level of consistency within the London market is maintained by ensuring both refiners and vaults implement the Good Delivery Rules relating to a bar's assay, weight and its safe handling and stacking. The main specifications for GD gold and silver bars are summarised below. No other refined gold or silver products produced by accredited refiners fall within the scope of the Good Delivery Lists.

Specifications for a Good Delivery Gold Bar

Specifications for a Good Delivery Silver Bar

Provision of Self-Testing Samples

Annex H also shows how to derive London gross troy ounce weights rounded to the nearest 0.1 or 0.025 troy ounces for silver and gold respectively. Please click here to download an excel spreadsheet including the same.


It is essential that all GD bars contain the amount of metal stated by the marked assay as marked on the bar and its weight. Assays of GD bars are determined by the refiner at the point of manufacture. An assay is likely only to be checked again when a bar is used as raw material in a refinery, for example, for the manufacture of small bars or in a plant manufacturing products like jewellery.

Pro-active Monitoring

The LBMA ensures that the highest possible standards are maintained by testing the ability of all Good Delivery refiners to assay accurately on a three-yearly cycle for its Proactive Monitoring Programme (PAM). Details of a refiner's recent activity for PAM can be viewed in the Good Delivery Lists.

Vault Managers Working Group

The Vault Managers Working Group, comprising the Bank of England and representatives from those LBMA members with their own vaulting facilities in London, meet regularly to consider issues relating to bar quality and vault procedures. Vault Managers are required to document every case of bar rejection and provide the associated information to the LBMA Executive.

Changes to the Good Delivery Rules

To view details of recent changes made to the Good Delivery Rules click here. This document sets out the changes made to the Rules between 2007 and 2013. The first edition of the Good Delivery Rules was published by the LBMA in 1993. Prior to that, at various times during the 20th Century, the London Gold Market produced booklets containing earlier versions of the rules pertaining to the Good Delivery of bars.

Good Delivery Applicants

Refiners wishing to apply for Good Delivery Status should read carefully the current version of the GDL Rules. Please refer to the FAQs on Good Delivery for further details. Please contact if you have any questions about the application process.

The LBMA comprises and represents the key players and their clients in the bullion market, which is centred in London but which has an international footprint. It is not an Exchange like the LME on which contracts for base metals are traded.

The current membership of the LBMA includes more than 140 companies including refiners, fabricators, traders as well as those providing storage and secure carrier services. We represent these members, and through our maintenance of and publication of the Good Delivery List, set the benchmark for gold and silver metal bars across the world.

Origins of the LBMA

The LBMA was established in 1987 by the Bank of England, which at this time was the bullion market's regulator. The LBMA took over the roles previously carried out by two separate organisations, the London Gold Market and Silver Market, whose origins date back to the mid-nineteenth century.

The on-going work of the Association covers setting and monitoring refining standards, creating trading documentation and fostering the development of good trading practices. The LBMA's main role is the maintenance and publication of the Good Delivery Lists for gold and silver, which are universally acknowledged as the de facto standard of quality assured and assayed bullion. The LBMA Brochureprovides further information about the work of the LBMA.

Since its inception in 2000, the LBMA's annual Precious Metals Conference has been the premier professional forum for the world's precious metals market. Following the conference in Singapore on 16-18 October, 2016, the next in the series of conferences will take place in Barcelona on 15-17 October, 2017.

The LBMA also produce other publications, most significantly the Alchemist, the LBMA's quarterly journal, which contains articles of general interest to all participants in, and observer's of the bullion market. It is available free of charge from the LBMA Executive.

The LBMA Good Delivery List is widely recognised as representing the de facto standard for the quality of gold and silver bars.

Good Delivery List

In the refining industry, accreditation on the LBMA Good Delivery List is widely recognised as the benchmark standard for the quality of gold and silver bars, due to the stringent criteria that an applicant must satisfy. In 2004 the LBMA introduced a system of regular proactive monitoring of refiners on the List, an important initiative which further enhanced its reputation and those refiners it listed. The List is used by many precious metals exchanges around the world to define in whole, or in part, the refiners whose gold and silver bars are accepted in their own markets.

The London Bullion Market

The London Bullion market has a long and colourful history which precedes the formation of the LBMA. For more information on the history of the London Bullion market, the role of the LBMA and other key participants within it, click on the link About the Bullion Market, in the Useful Links dialogue box on the right hand side of this page.