What is Good Delivery?
"Good Delivery" is a quality standard established by the London Bullion Market Association (LBMA). It specifies the exact requirements a silver bar must meet to be accepted for trading in the London wholesale market—the world's largest over-the-counter market for precious metals.
When a bar is "Good Delivery," it means any LBMA member will accept it without question. This fungibility is what makes the global silver market work—a Good Delivery bar in London is equivalent to one in Zurich or Hong Kong.
Good Delivery Specifications
| Requirement | LBMA Good Delivery | COMEX Deliverable |
|---|---|---|
| Weight Range | 750-1,100 troy oz (ideal: 900-1,100) | 1,000 oz +/- 6% |
| Minimum Purity | .999 fine (99.9%) | .999 fine (99.9%) |
| Required Markings | Serial #, refiner, fineness, year, weight | Serial #, refiner, fineness, weight |
| Refiner Requirement | LBMA Good Delivery List | COMEX-approved brands |
| Appearance | No cavities, cracks, or excessive defects | No specific requirements |
| Physical Weight | ~62-75 lbs (28-34 kg) | ~62-75 lbs (28-34 kg) |
LBMA-Accredited Refiners
Only bars from LBMA Good Delivery List refiners qualify. Here are some of the major refiners whose bars are widely traded:
| Refiner | Country | Status |
|---|---|---|
| Johnson Matthey | UK/USA | Historical (acquired by Asahi) |
| Asahi Refining | USA/Japan | Active |
| Heraeus | Germany | Active |
| Valcambi | Switzerland | Active |
| PAMP Suisse | Switzerland | Active |
| Metalor | Switzerland | Active |
| Republic Metals | USA | Active |
| Royal Canadian Mint | Canada | Active |
| Perth Mint | Australia | Active |
Why Good Delivery Has the Lowest Premiums
Lowest Cost Per Ounce
- Manufacturing costs spread over 1000 oz
- Direct access to wholesale market
- No conversion costs when selling
- Institutional demand provides liquidity
Trade-offs
- High minimum investment (~$25,000)
- Requires specialized storage
- Not divisible (all-or-nothing)
- Heavy (~70 lbs) - impractical for home
Institutional vs Retail Markets
Good Delivery bars exist in two worlds: the institutional wholesale market and the retail investor market. Understanding this helps explain pricing and liquidity.
| Aspect | Institutional | Retail |
|---|---|---|
| Typical Buyer | Banks, ETFs, governments | High-net-worth individuals, IRA holders |
| Minimum Purchase | Usually 100+ bars | 1 bar |
| Premium | Spot + 0.25-0.50% | Spot + 1-3% |
| Storage | LBMA-approved vaults | IRA depository or private vault |
| Selling | OTC market, instant | Back to dealer, may take days |
IRA Eligibility
Good Delivery silver bars are IRA-eligible when they meet the standard IRS requirements (.999+ purity, from approved refiner). They must be stored at an IRS-approved depository—you cannot take home delivery for IRA holdings.
Where to Buy Good Delivery Bars
Not every dealer carries 1000 oz Good Delivery bars. Here are sources that do:
- SD Bullion - Often best retail prices
- JM Bullion - Multiple brand options
- APMEX - Wide selection, premium service
- Monex - Institutional-oriented dealer
- Kitco - Global dealer with GD inventory
For IRA purchases, your Gold IRA custodian will typically source bars through their approved dealer network to ensure proper chain of custody and documentation.