Good Delivery Bar

A "good delivery bar" is a specific type of standardized and high-quality precious metal bar that meets certain criteria set by commodity exchanges and industry standards. These bars are used for the settlement of futures contracts and other transactions in the precious metals market. The term is commonly associated with gold and silver bars.

Key details

• Standardization: A good delivery bar is a precious metal bar that conforms to strict size, weight, and purity standards established by commodity exchanges, industry organizations, and international agreements. These standards ensure uniformity and facilitate trading and settlement.

• Size: Good delivery bars typically have a standard size, which is commonly referred to as the "London Good Delivery" size for gold and silver. For example, a standard gold bar is often 400 troy ounces (approximately 12.4 kilograms), and a standard silver bar is 1,000 troy ounces (approximately 31.1 kilograms). These sizes may vary slightly depending on the specific exchange and region.

• Weight Tolerance: A good delivery bar must have a very small weight tolerance, usually within a narrow range of the specified weight. For example, a 400-ounce gold bar should have a weight tolerance of only a few grams.

• Purity: Good delivery bars are required to meet strict purity standards. For gold, the purity is typically at least 99.5% (often referred to as 995 parts per thousand pure gold). For silver, the purity is generally 99.9% (often referred to as 999 parts per thousand pure silver).

• Hallmarks: These bars are often stamped with hallmarks that indicate the refiner, the bar's serial number, the weight, and the purity. These markings provide important information and ensure the bar's authenticity and quality.

• Acceptance: Good delivery bars are widely accepted for settlement in the precious metals market, including the settlement of futures contracts and other transactions. They are considered highly liquid and marketable.

• Storage: These bars are typically stored in secure and accredited vaults, often referred to as "good delivery vaults," to maintain their integrity and to facilitate their use in trading and settlement.

Good delivery bars play a crucial role in the precious metals market, as they provide a standardized and trusted form of physical metal for transactions. Market participants, including refiners, banks, mints, and dealers, adhere to these standards to ensure the quality and authenticity of the bars they produce and trade.

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