The term ingot refers to pure gold, silver or platinum in bar (ingot). The term Bullion comes from the French term "bouillon", which means "boil". Gold and silver bullion products are manufactured to provide investors with a convenient way to invest in precious metals.
What is a pure ingot?
According to Investopedia, "An ingot of gold, silver, platinum is officially recognized as being pure when this ingot contains 99.5% of material and is in the form of bars or bars rather than coins. The resulting pure ingot is also referred to as "parsed ingots".
Bullion and coins follow a logistics chain just like many other products. First of all, the bars or coins are made by a government or a refiner. These refiners will then sell their products to the ingot traders. Only specific traders with sufficient capital are able to buy directly from refiners. A trader who does not meet specific requirements can not access the bullion.
Buying gold and silver bars for the individual may seem simple. Just go to a bullion dealer. However there are some basic rules to follow when buying gold and silver bullion. Refiner certification is an example of what to look for. Bunker offers the most competitive bullion price for gold, silver and platinum bars on the market thanks to our lowest margins and direct access to precious metals from the world's best LBMA certified refiners.
The LBMA: "The competent authority on the world market for bullion"
It is common to read "Live LBMA Gold Prices" when looking for Pure Bullion Products.
What does this acronym LBMA mean?
LBMA means "London Bullion Market Association". LBMA is an international association that controls the gold and silver bullion market and all players in this market. This includes the majority of central banks holding gold, private sector investors, mining companies, refiners and manufacturers.
London-based LBMA represents key players and their customers in the international bullion market.
The LBMA was created in 1987 by the Bank of England, which was at that time the regulator of the bullion market. The LBMA is the result of the merger of two distinct organizations, the London Gold Market and Silver Market, whose origins go back to the mid-nineteenth century. Today, LBMA is a responsible authority that ensures compliance, standards and rules governing the trading of Gold and Silver Bullion in the international marketplace.
At Bunker Group, we only sell LBMA-certified bars.
LBMA: The Integrity Chain in the Global Bullion Market
The integrity chain is vital to the gold market and the LBMA Good Delivery List provides a crucial link in this chain to ensure customer confidence in the gold market. Trust is what the brand LBMA provides by its label. A control of the quality of gold from the mine to customer sales. Thus, transactions and the precious metals market follow a strictly controlled chain of integrity that ensures that gold and silver traded on the market follow ethical rules.
The Good Delivery List is at the heart of the London bullion market. Not only is it an essential element in the proper functioning of the market, but it creates additional credibility for the refiners listed there. As a result, in recent years, markets and exchanges of precious metals are increasingly referring to the LBMA Good Delivery List in their own documentation.
The integrity chain is an important part of the bullion market infrastructure that ensures that you have high quality gold and silver bullion.
Each gold and silver bar delivered to Bunker Group was refined by an accredited ingot refiner and stamped with:
- a serial number,
- its purity of at least 99.5%
- An official weight
At Bunker Group, we only trade Gold, SIlver & Platinum bars that strictly follow the integrity chain, thus ensuring the purity of the bars.
Verification of bars purity
A controle is made at each movement of a bar between the vaults recognized by LBMA. This is called the integrity chain. The latter is "broken" if the bar leaves the community of ingots, for example to be placed in a private vault.
The integrity chain is supported by basic physical tests performed at the reception of the bars, as well as by specialists who periodically check the vault and test the bars on behalf of their owners. It is also independently verified by random sampling within the random checking framework performed by sworn agents. A full description of the London arbitration process is available on the LBMA website.
By keeping your gold in the chain of integrity, you are assured of the quality of gold, and the bars held there get a better price when sold, as professional buyers accept them at face value.
A bar that has been outside the system can be instantly devalued. A professional buyer may have doubts about its integrity.
Bunker Group respects in every respect "the chain of integrity"
The LBMA members
Members of the London Bullion Market must be companies or organizations active in the bullion market. The majority of the central banks that own gold, private sector investors, mining companies and refiners are thus found. Entities that provide secure storage and transport services can also be LBMA accredited.
Bunker Group only works with LBMA members
For Platinum bars, the same organisation as LBMA exists : the LPPM( London PLatinum and Palladium Market). The process is the same as LBMA.