Background information and role of the LBMA
The London Bullion Market Association was established in 1987. The LBMA is a trade association representing the wholesale gold and silver market in London. The London Bullion Market is the most important over-the-counter market for trading gold and silver.
The London Bullion Market Association comprises members from different sectors, e.g. market makers, bullion banks, gold mining companies, refiners and precious metals storage providers.
The role of the LBMA is to define and promote standards and good trading practices in order to facilitate the trade in gold and silver.
Activities of the London Bullion Market Association
The LBMA represents with its LBMA Good Delivery List the standard for the quality of gold and silver bars. In order to getting listed, applicants must meet defined requirements. The standard gold bar according to the Good Delivery criteria – also called the Good Delivery Gold bar – contains 400 troy ounces (approximately 12.5 kg) of gold but the gold content can vary between 350 troy ounces and 430 troy ounces. The minimum fineness of standard bars is 99.5%.
With its Responsible Gold Guidance, the LBMA will require from 1st January 2012 that all LBMA Good Delivery Refiners comply with certain principles in order to ensure supply of conflict-free gold and meet SEC and OECD requirements.
Once per year the London Bullion Market Association organises the LBMA Precious Metals Conference, which is today the leading conference for bullion market professionals.
Members of the London Bullion Market Association
The LBMA has more than 120 members and associates. There are three different types of members:
- Market-Making Members quote prices for gold and silver
- Ordinary Members include for example non-market-making banks, vault operators, mints and brokers
- Associates, e.g. refineries and metal trading companies but also banks as well as inspection companies or assayers