Good-Delivery: A Comprehensive Guide to Its Legal Definition and Standards

Definition & Meaning

Good delivery refers to the recognized standard for the quality of gold and silver bars in the precious metals market. This standard is maintained by the London Bullion Market Association (LBMA), which periodically assesses the assaying capabilities of refiners listed on its Good Delivery List. To be included on this list, refiners must meet specific criteria that ensure the quality and reliability of their products.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A gold refiner has been operating for five years and produces 15 tonnes of gold annually. They apply for inclusion on the Good Delivery List and provide all necessary documentation, including financial statements and a letter of endorsement from a reputable industry figure.

Example 2: A silver refiner with a three-year history and a production rate of 35 tonnes per year seeks to be listed. They submit evidence of their ownership structure and meet the financial requirements, thus qualifying for the Good Delivery List.

Comparison with related terms

Term Definition Key Differences
Good Delivery Standard for quality of gold and silver bars. Focuses on the quality assurance of refined metals.
Assaying The process of testing the metal content of a sample. Assaying is a method used to verify the quality of metals, while good delivery is a standard that results from this verification.

What to do if this term applies to you

If you are involved in the buying or selling of gold and silver, ensure that the bars you are dealing with meet the good delivery standards. It may be beneficial to consult legal professionals or utilize US Legal Forms' templates to create contracts that specify these standards and protect your interests in transactions.

Quick facts

Attribute Details
Minimum Gold Production 10 tonnes per year
Minimum Silver Production 30 tonnes per year
Minimum Net Worth £10 million or equivalent

Key takeaways

Frequently asked questions

Good delivery refers to the standard that ensures the quality of gold and silver bars in the market.