Top things about Gold Bar Investment with LMBA Certified.

 

Important things to know about Gold Bar Investment

Lower making charges and premium involved in gold bar investments:

It makes sense to invest in a gold bar because bars come with a lower premium attached to them. The premium you pay usually includes making charges and sometimes also includes transportation and refining costs. Since gold bars are much larger in size, economies of scale come into play, ensuring that you get your money’s worth.

Available weight options for buying gold bars:

Gold bars come in weights starting from as little as 0.5g and go up to 1 kg, with 5g, 8g 10g, 116.63g ( Ten Tola), 11.63g (One Tola), 100g  bars being popular choices with most people. But in Sri Lanka Ten tola Suisse  is the most popular to us. It is essential to weigh factors such as your budget, investment and liquidity goals before you make your decision. Bars of a higher weight are cheaper to purchase, but lighter ones are easier to liquidate on short notice.

Purity of the gold bar:

Purity is of key importance if you are purchasing gold bars for investment purposes. Make sure that you buy bars that are hallmarked or LBMA certified. This ensures that you are getting your money’s worth, and places you in a better position when you are looking to sell your gold bar. Also, you must insist on a purity certificate at the time of purchase.

Storing gold bars:

Since gold bars have a higher worth as compared to coins, and aren’t possible to liquidate immediately, they are difficult to store at home, making alternatives such as lockers a safer option. However, if you wish to store them in a locker at home or the bank and don’t have one already, factor in an additional cost for the same.

Where to buy gold bar:

Just like with gold coin it is worth your time and money to visit a few reliable retailers before you make your purchase to ensure that you’re paying the least amount of premium possible. This is all the more important with gold bars because the amount you invest is significantly higher and even a difference of 1–2% can translate into substantial savings for you.

What makes gold bars a good investment option?

Gold bars are a lucrative idea for those who have money to invest and are looking to invest in a form that not only offers long term benefits but is also easy to liquidate. The highlights of investing in a gold bar are:

·         Negligible making charges.

·         You can invest in gold bars for your family’s financial security, with the intention of eventually converting bars into jewellery or liquidating them when an emergency arises.

·         If you are looking for a long term investment and want to put it in physical gold then gold bars are a suitable tool.

·         Easy to liquidate and straightforward to sell which makes gold bars very accessible to all kinds of investors.

WHAT IS THE LBMA?

 LBMA is the acronym for London Bullion Market Association. It is an international trade association, responsible for setting up standards in the global bullion market. Its members include traders, refiners, producers, miners, and storage and secure carrier services.

The LBMA is responsible for gold and silver bullion standards, that includes how precious metals must be refined as well as traded.

It is also responsible for Good Delivery accreditations, and the maintenance of a Good Delivery List.

 

WHAT IS A LBMA APPROVED REFINER / MANUFACTURER?

 The LBMA maintains a Good Delivery List since 1987. The list comprises gold and silver refiners that are recognized to produce gold bars to a certain standards. LBMA accredited refiners include Metalor, Argor-Heraeus, PAMP, Umicore or Valcambi.

A gold or silver refinery accredited by the LBMA is a refinery that meet stringent acceptance criteria in the production of its gold bars. Such refineries are eligible to produce Good Delivery bars.

Additionally, LBMA approved refiners must implement the Responsible Gold Guidance from the LBMA, that require them of sourcing metal responsibly.

Historically, the Good Delivery List was named the List of Acceptable Melters and Assayers.

WHAT IS A LBMA GOLD BAR?

GOOD DELIVERY BARS VS LBMA GOLD BARS

The term “LBMA gold bar” does not have to be confounded with “Good Delivery gold bars“, which corresponds to gold bars weighting around 400-ounces (12.5 kg). Good Delivery bars, also known as “large” or “market” bars are manufactured conform to strict specifications set in the Good Delivery Rules. Such bars are shipped to approved vaults in London, and then freely traded between institutions within the market.

The London Good Delivery standard is universally acknowledged as the de facto international benchmark for the quality of large gold and silver bars. With such criteria, the LBMA aims to standardize the quality of the gold bars being traded and stored in the global market.

Bars must satisfy high standards in terms of purity, quality and physical appearance. Below is a summary of the criteria required for a gold bar to be qualified as Good Delivery:

·         Net Weight (Fine Gold Content): approximatively 400 troy ounces.

·         Shape: ingot shaped (trapezoidal).

·         Appearance:

·         Should contain as less irregularities as possible, such as cavities, cracks or holes (especially on the top surface).

·         Sides and bottom surface should be flat and reasonably smooth.

·         Marks:

·         Stamp of the refiner

·         Assay Mark

·         Fineness (to four significant digits)

·         Serial Number

·         Weight (including the unit of weight)

The Good Delivery Standards include more precise requirements, such as expected bar dimensions, weighting and casting method. More details about those can be found in the pdf document “Good Delivery List Rules: Conditions for Listing for Good Delivery Refiners” 

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