The London Bullion Market Association has set strict standards for gold and silver bullion that are traded in the London Precious metals market. These standards are called the “Good Delivery Rules”. These standards are associated with how the bullion is handled and stored after the bars are manufactured. The Good Delivery Rule Specifications relate to the weight, fineness, dimensions and marks of the gold and silver bullion.
The weight requires the tracking of gold or silver content in the bar and the gross weight of the bar, measured in Troy ounces. Fineness is the acceptable purity of the bar; only a certain level of filler material is allowed. The dimensions are tracked in millimeters and allow only the specified dimensional overage or shortage in size. “Good Delivery” bars also have all of the required markings which include serial number, assay stamp from the refiner, fineness and year of manufacture. These characteristics must all be tracked. Only when all of these standards are met, is the refiner placed on the “Good Delivery List”.
It is imperative that companies storing this gold and silver bullion comply with the LBMA Good Delivery Rules. Obtaining compliance is simplified with the use of an inventory management system with the necessary functionality to meet these requirements. The functionality needed includes, but is not limited to: cross-verified blind weighing and receiving to guarantee the listed weight of the bullion, tracking and storage of assay certification data, fineness, weight and dimension tracking across all system activity, all attribute tracking as related to the Good Delivery Standards and random re-verification of all inventories.
If your business is ready to learn more about how an inventory management solution can assist in meeting these strict requirements as set by the LBMA while also providing excellent service to your customers, contact us today. Datex is an industry leading expert in the vault management industry and is currently serving allocated inventory/ precious metals storage facilities in both the United States and the UK.