London Bullion Market Association: Membership, Regulation, and Standards

The London Bullion Market Association (LBMA) is a significant player in the global precious metals market. It was founded in 1987.

Membership in the LBMA is open to companies that meet certain criteria, including being a major participant in the London Bullion Market. To be eligible, a company must be a member of the London Bullion Market Association's Good Delivery List.

The LBMA works closely with regulatory bodies, such as the UK's Financial Conduct Authority (FCA), to ensure that its members adhere to strict standards and regulations. This includes maintaining accurate records and adhering to anti-money laundering (AML) and know-your-customer (KYC) requirements.

The LBMA's Good Delivery List is a key indicator of a company's credibility and trustworthiness in the industry. Companies that make the list have demonstrated their commitment to quality and integrity.

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The London Bullion Market Association, or LBMA, is a prestigious industry body. Chards became a full member of the LBMA in January 2024.

The LBMA governs the London Bullion Market, the largest and oldest precious metals market in the world.

Volumes in this market exceed $60 billion per day.

The London Bullion Market Association has a rich history that dates back to the 17th century. The Bank of England established its first bullion vault in London to accommodate the influx of gold from gold rushes in Brazil, California, Australia, and South Africa.

The Bank of England began standardizing the quality of gold bars in 1750, establishing the London Good Delivery List, which is still in place today. This list recognized refineries that produced gold bars of a particular standard and allowed them to enter the London market.

By the late 19th century, five companies had established the London Gold Market, which managed the gold market's operation in London. These companies were N M Rothschild & Sons, Mocatta & Goldsmid, Pixley & Abell, Samuel Montagu & Co, and Sharps Wilkins.

The London Gold Fixing was first introduced in 1897, and the London Silver Fixing followed in 1919. These fixings benchmarked the trading of gold and silver bullion and formed the basis of the market's structure that the LBMA operates under today.

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The LBMA was officially established in 1987 by the Bank of England, which recognized a need for an independent body to oversee the maintenance and regulation of the Good Delivery List. The LBMA took over the roles of the London Gold Market and the London Silver Market, which had been established in the mid-1800s.

The LBMA has since maintained gold and silver Good Delivery Lists and expanded its focus beyond just gold and silver to the entire global wholesale precious metals markets. Today, the LBMA has 140 members, including leading mints and refineries, banks, traders, storage facilities, security carriers, and precious metal fabricators.

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The London Bullion Market Association (LBMA) has a robust structure that enables its functions to run smoothly. The LBMA is a trade association that represents the London Bullion Market, which is the world's largest wholesale gold and silver trading market.

The LBMA has a Board of Directors that oversees the association's activities and makes key decisions. The Board is composed of representatives from LBMA member companies, including major banks, refiners, and bullion dealers.

The LBMA also has a number of committees that focus on specific areas, such as the LBMA's Good Delivery List, which sets standards for the quality of gold and silver bars. The Good Delivery List is a critical component of the LBMA's efforts to maintain the integrity and transparency of the London Bullion Market.

The LBMA's Good Delivery List requires bars to meet strict standards, including a minimum fineness of 99.5% for gold and 99.9% for silver. This ensures that only high-quality bars are accepted for trading on the London Bullion Market.

The LBMA's Good Delivery List is regularly updated to reflect changes in market conditions and technological advancements. This helps to maintain the list's relevance and effectiveness in maintaining the integrity of the London Bullion Market.

The LBMA's Good Delivery List is widely recognized and respected within the industry, and is used by major banks, refiners, and bullion dealers around the world. This helps to promote trust and confidence in the London Bullion Market.

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LBMA membership is more than a symbolic badge, it signifies a dealer's commitment to the highest standards of ethics, quality, and integrity. This ensures that each transaction is secure and reliable.

The application process is rigorous, requiring attestation from 3 other established members, and sets out to demonstrating a dealer's commitment to industry best practices. This level of commitment is a testament to the dealer's dedication to transparency and ethics.

Full members, like Chards, have the right to put forward candidates for election to the board of Directors of the LBMA, demonstrating their commitment to the market. This level of involvement is a key benefit of membership.

Membership to the LBMA is a badge of honor that signifies a dealer's commitment to the highest standards of ethics, quality, and integrity.

The application process is rigorous, requiring attestation from 3 other established members and demonstrating a dealer's commitment to industry best practices. This ensures that each transaction is secure and reliable.

LBMA membership provides a market environment that is transparent and ethical, reducing the risk of fraud and market manipulation. This is particularly important for retail investors who may not have the capability to perform in-depth due diligence.

As a full member, Chards has the right to put forward candidates for election to the board of Directors of the LBMA, demonstrating our commitment to the market.

Being an LBMA member is a big deal, and it's not just a title. There are four types of membership, each with its own set of responsibilities and benefits.

Full Members are organizations operating in areas closely related to the London bullion market, such as trading, broking, shipping, mining, refining, assaying, research, and inspection.

Market-Making Members have the same rights as Full members but with the added responsibility of quoting bid and offer prices to each other during the London business day. There are 11 LBMA Market Makers, including big names like Goldman Sachs International and JP Morgan Chase Bank.

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Affiliate Members include international market participants, exchanges, intermediaries, technology and service providers.

Associate Members are traders in other markets with bullion-based relationships with LBMA members.

Here are the four types of membership with the LBMA:

Being a member of the LBMA signifies a trustworthy organization with a solid reputation in the precious metals industry.

The London Bullion Market Association (LBMA) has a rigorous system in place to ensure the quality of gold and silver traded by its members.

The LBMA's good delivery standards determine the minimum acceptable refining standards and specifications for gold and silver bars.

Only bars meeting these high standards can be traded through members on the London bullion market, providing assurance that all bullion meets high quality standards.

The LBMA's standards are vetted and approved by Trading Standards, giving you confidence in the quality of the precious metals you're buying or selling.

The LBMA plays a critical role in the global trade of precious metals, and its standards are a key part of that process.

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The LBMA plays a crucial role in ensuring a fair and efficient market for precious metals traders. It develops policies, regulations, and best practices for ethical conduct in the trading of precious metals.

Members of the LBMA must follow its code of conduct for transparency and integrity in transactions. This code promotes a fair and trustworthy environment for all participants.

The LBMA's extensive network of members, including large banks and refiners, provides significant visibility into worldwide supply and demand for precious metals. This data is used to publish statistics on trading volumes that provide insight into market directions.

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The LBMA develops policies and regulations to ensure a fair and efficient market for precious metals trading. Its code of conduct emphasizes transparency and integrity in transactions.

The LBMA's code of conduct is a set of rules that members must follow. This code is designed to promote a fair and efficient market for all participants.

The LBMA plays an educational role in the industry, providing market data and news to increase public understanding of precious metals trading. It also holds seminars and training for refiners, regulators, bankers, and miners involved in the bullion market.

Members of the LBMA include large banks, refiners, producers, and other companies from dozens of countries. Some key participants are JPMorgan Chase, HSBC, Goldman Sachs, Morgan Stanley, and UBS on the banking side.

The LBMA's extensive network gives it significant visibility into worldwide supply and demand for precious metals.

The LBMA plays a vital role in the global precious metals industry, and its importance can't be overstated.

The LBMA sets and maintains strict standards for the production, refining, and trading of precious metals, ensuring uniformity and transparency in bullion products. This results in a more efficient global trade market and reduced counterparty risks.

The LBMA operates the world's largest over-the-counter (OTC) market for gold and silver, providing a platform for price discovery through transparent and competitive trading. This is a benchmark used globally and referenced by investors dealing with physical precious metals, ETFs, and derivatives.

Knowing that a bullion product is LBMA-approved gives investors immediate assurance and confidence in its quality and authenticity. This is because of the LBMA's global influence, which makes it easy for investors to buy and sell their precious metals holdings anywhere, increasing liquidity.

The LBMA collaborates with regulatory authorities and industry stakeholders to establish and enforce best practices in the precious metals market. By promoting responsible sourcing guidelines and ethical standards, the LBMA helps safeguard market integrity and maintain investor confidence.

Here are the key reasons why the LBMA is important:

We've been in the business since 1964, and our membership in the London Bullion Market Association (LBMA) is a testament to our dedication to the UK market.

Our values are aligned with the LBMA principles of transparency, quality, and integrity.

We place your investment's reliability, security, and future liquidity as our top priority.

Our LBMA membership demonstrates our commitment to transparent operations.

We offer a vast product catalogue and service offerings that cater to both retail and institutional customers.

Our commitment to ethical sourcing is evident in our operations.

The Gold Market is a significant part of the London Bullion Market Association's activities. The LBMA's Gold Price is used as a global benchmark for gold prices.

The LBMA's Gold Price is calculated in US dollars per ounce and is based on a daily auction of gold between major bullion banks. This price is widely followed by investors and traders around the world.

The LBMA's Gold Price is used as a reference point for the pricing of gold bars, coins, and other gold products.

The London Gold Fix, also known as the LBMA Gold Price, is a key benchmark for pricing gold widely used by producers, consumers, investors, and central banks across the world.

It's managed by the Intercontinental Exchange through the ICE Benchmark Administration, and the London Bullion Market Association holds the intellectual property rights to it.

The London Gold Fix is published daily, but it used to quote gold forward offered rates, which were used to derive gold lease rates, until January 30, 2015.

The LBMA Gold Price is a vital reference point for anyone involved in the gold market, helping to establish a fair and transparent price for gold.

It's set by a panel of five major bullion banks, who agree on the price based on market conditions and supply and demand.

The London Gold Fix is used by many investors and traders to gauge the value of gold and make informed decisions about their investments.

Good Delivery is a set of quality assurance standards that govern the global market of gold and silver bars. These standards are maintained and published by the London Bullion Market Association (LBMA).

Good Delivery bars must meet specific size and weight criteria, with gold bars ranging from 350-430 troy ounces (11-13 kg) and silver bars between 750-1,100 troy ounces (around 23-34 kg).

To ensure authenticity, Good Delivery bars are stamped with essential information, including the item's serial number, refiner's hallmark, fineness, and year of manufacture.

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The LBMA's Good Delivery List extends beyond standards of quality and purity to Responsible Gold Guidance, which aims to address human rights violations, conflict funding, money laundering, and terrorism financing.

Refineries on the Good Delivery List must source their gold ethically and responsibly, and investors buying LBMA-approved bullion products can rest assured knowing that their investments are not contributing to unethical behavior.

Here are the key characteristics of Good Delivery bars:

Good Delivery bars are widely accepted in major international markets, including London, New York, Hong Kong, Tokyo, Zurich, and Sydney. They're also commonly found in the gold reserves of central banks, governments, and the IMF.

Good Delivery is a set of quality assurance standards that govern the global market of gold and silver bars. These standards ensure that the bars meet strict criteria for weight, purity, and dimensions.

The London Bullion Market Association (LBMA) is responsible for maintaining and publishing the Good Delivery Lists, which outline the requirements for gold and silver bars. Refineries listed on these lists must meet quality, purity, and integrity criteria set by the LBMA.

Good Delivery gold bars must weigh between 350-430 troy ounces (11-13 kg) and have a minimum fineness of 995 parts per thousand fine gold. Silver bars, on the other hand, must weigh between 750-1,100 troy ounces (23-34 kg) and have a minimum fineness of 999 parts per thousand.

To ensure authenticity, Good Delivery bars are stamped with essential information, including the item's serial number, refiner's hallmark, fineness, and year of manufacture. This information allows the bars to be traced back to the original refinery.

The LBMA also has a policy called Responsible Gold Guidance, which aims to address human rights violations, conflict funding, money laundering, and terrorism financing. Refineries on the Good Delivery List must source their gold ethically and responsibly.

Here are the key characteristics of Good Delivery bars:

Companies that fail an audit will lose their accreditation and suffer damaged reputation and financial losses.

Buying and Partnering with LBMA Members is a straightforward process. The LBMA has a membership application process that requires applicants to meet certain criteria.

To become a member, applicants must demonstrate a commitment to the LBMA's code of conduct, which includes upholding the highest standards of integrity, honesty, and fairness in the bullion market. This code of conduct is essential in maintaining trust and confidence in the market.

The LBMA has a network of over 150 members, including refiners, fabricators, miners, and other market participants. These members are involved in various aspects of the bullion market, from refining and fabricating gold and silver to trading and investing in precious metals.

Partnering with Alibaba Cloud gives you access to a high degree of ethics, quality, and stability, similar to what you'd find with an LBMA member dealer.

You can gain confidence in your transactions, knowing that Alibaba Cloud is committed to a functioning market and has developed systems to mitigate potential issues.

Their commitment to compliance and ethical practices ensures that you're working with a trustworthy partner, one that sources metals in an ethical and sustainable way.

Alibaba Cloud's expertise and professionalism provide valuable insights, helping you make informed decisions about your business.

Their ongoing commitment to the market means you can execute transactions with confidence and security, providing you with peace of mind in a market built on trust.

Buying approved bullion is a crucial step in investing in precious metals. StoneX Bullion is proud to be an affiliate member of the LBMA, demonstrating their commitment to sourcing high-quality, investment-grade precious metals.

They stock bullion bars in gold, silver, platinum, and palladium. This means you can diversify your portfolio by investing in different types of precious metals.

You'll find investment-grade coins from prestigious mints and refineries like the Perth Mint and Rand Refinery. These coins are highly sought after by collectors and investors alike.

No matter what you're looking for, whether it's to invest in bullion for your future or to find a special coin to crown your collection, StoneX Bullion has got you covered.

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