If you have stumbled across the word “LBMA” and now wondering what is the LBMA and how it is related to the sunny metal, then read on.
“LBMA” is an acronym and stands for the London Bullion Market Association.
Located in London and established in 1987, LBMA is an international trade association which represents the London market for gold and silver bullion*.
LBMA’s clients are located all over the world and include the majority of central banks that hold gold, private sector investors, gold and silver mining companies, producers and refineries**.
Although the LBMA has a wide range of responsibilities, its core responsibility is to maintain the Good Delivery List.
Good Delivery List is the list of gold and silver refineries that meet the requirements and adhere to procedures and policies set by the LBMA. The LBMA keeps two such Lists: one for gold and the other one for silver.
If a specific refinery is on the LBMA List, it means that it has acquired the LBMA accreditation. Moreover, to continue to maintain a spot on that List, a refinery must meet the regular testing conducted by the LBMA, otherwise it will be moved to the Former List.
Because of the stringent criteria that refineries must meet in order to acquire the LBMA accreditation, the quality of gold and silver bars of refineries that are already on the Lists is unquestionable and considered to be of universal standard.
The official website of the LBMA is www.lbma.org.uk.
I’m sure, now, you have a much clearer idea what this little beast is!
* bullion – bars and ingots
** refinery – receives impure gold and removes its impurities so that it can be mixed with other metals (alloyed) or used in pure form