LBMA

The London Bullion Market (English: Bullion is Over-The-Counter, OTC, Italian: direct trade, off-exchange) is the most important gold and silver trading center, as well as one of the main global gold markets in the city of London. The world price of gold has been established here since 1919. The LONDON BULLION MARKET ASSOCIATION (LBMA) coordinates this trade.
The members are foundries, manufacturers, finishers, major international banks and distributors worldwide.

Only foundries and mints, which meet certain quality requirements, are accepted in the association. A standard gold bar has at least a purity of 995/1000 and normally weighs 400 ounces (1 ounce is 31.1g), it means 12,440 grams. The abbreviation of international quality, “Good delivery LBMA” (trad .: good delivery), guarantees the weight and purity printed on the ingot as well as a constant and continuous custody in accepted deposits. Ingots with LBMA Good-Delivery-Status are accepted and marketed all over the world.

Wholesale price determination:

The price of LBMA (ex goldfixing) gold is established, for the 400 ounce bar, twice a day with the aim of processing fixed price transactions.

Morning: Monday to Friday, 10.30 am London time (11.30 am Malta)
Afternoon: Monday to Friday, 15.00 London time (16.00 Malta)
 
Price communication to the mass media:
the established price is communicated and disseminated through daily newspapers, the internet, etc. only after conversion to ounces (unit of measurement) example:
LBMA gold price of 02.01.2020 AM: US $ 1,520.55 / ounce or in Euro 1,358.46 / ounce.

Retail pricing (for individuals):

Private customers can buy gold bars of various cuts and shapes: the largest affordable cut is 1 (one) kilogram. The available cuts are: 1000g, 500g, 250g, 100g, 50g, 31.1g (ounce), 20g, 10g, 5g, 2g, 1g, they can have different shapes: usually up to 100g the ingots are printed, above are cast ingots are also available.

The retail gold price is calculated by adding production, custody, insurance, commercial margin for distribution and marketing to the LBMA price. The smaller the ingot cut, the larger the reloading is, because producing a 50g ingot costs as much as producing a 100g ingot. It follows that the costs for small ingots are therefore higher: buying two 50g ingots costs more than a 100g ingot. The form of ingots is however the most convenient in relation to the purity and the incidence of costs in general

To make sure you can buy fine gold from a reputable manufacturer, we recommend checking that the gold is LBMA (London Bullion Market Association) certified. If the manufacturer is not on the LBMA Good-Delivery-Gold list – avoid the purchase, because when you have to resell it, it is very likely that you will run into problems.

Looking to buy LBMA-certified 999.9 (24k) gold?   Book your free consultation here.

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