Good Delivery bars: Does it matter which type of bar I buy?
The precious metal specialists at Gold & Co. recommend, purchasing a good quality bar from a Good Delivery manufacturer on every occasion. If you buy a Good Delivery bar, a problem-free repurchase is ensured.
What are Good Delivery bars?
There are many companies in Vienna that sell gold bars. Famous names in the industry include Gold & Co, Ögussa, Philoro and the Austrian Mint. You can also purchase gold bars at banks, some of which have their own imprints.
These include bars manufactured by certified manufacturers. The LBMA (London Bullion Market Association) is an international association based in London, England and includes and represents the major players in the gold market, as well as their customers. These include central banks and companies that primarily manufacture gold bars and silver bars. The association also only awards the LBMA certificate to manufacturers who are subject to strict controls and conditions. This guarantees the authenticity and purity of the bars, which is why you can sell these gold bars worldwide without any problems and without deductions. Gold & Co. exclusively offers silver and gold bars from Good Delivery producers (such as Austrian Mint or Argor Heraeus).
Only the Austrian Mint has this certificate in Austria, which is given by the LBMA (London Bullion Market Association) under strict controls and conditions.
This can also be said of Argor Heraeus in Switzerland. Only those manufacturers certified by the LBMA have the license to also manufacture 400 ounce bars. 400 ounce bars have an absolute weight of 12.5 kg and are traded internationally by states, banks and major investors.
Good delivery bars are generally accepted all over the world and purchased by nearly all banks and precious metal traders without a problem. Bars made by other manufacturers are not purchased by banks at all, and only with high extra deductions in the case of precious metal dealers. Thus, deductions of up to 15% are to be expected when purchasing gold bars from non-Good Delivery manufacturers.
1 kg of gold currently costs 38,620 Euros on the market - a price reduction of 15% will certainly make a big difference here. Yet, how does this price difference come about? As previously stated, non-Good Delivery products are not fully accepted worldwide, or are purchased with a large deduction. If you sell a non-certified piece of precious metal, such as gold or silver, then reputable precious metal dealers will have this precious metal melted. This process is usually handled by refineries. These are companies which separate or dissolve base metals or impurities from gold or silver. During the next step, the non-certified bars are poured into gold bars, which are then allowed to carry Good Delivery certification. A price difference of up to 15% is incurred as a result of melting and reminting the bars.
|100 gram bars of a |
Good delivery manufacturer
(Example: Austrian Mint)
|10 gram bars of a manufacturer |
without Good Delivery certification
(bars of an Austrian refinery)
|Fine content: 999.99 - bank tradable||In terms of purity and quality, there is no difference to the bar on the left - |
the difference is only in dealer acceptance
A list of all global manufacturers of Good Delivery bars can be found on the LBMA website: http://bit.ly/1uuufxC
Useful information for investors
Of course, even gold bars from non-certified manufacturers contain the imprinted gold content in the majority of cases. Just pay attention to the minimum fine content of 999.9, since there are also gold bars with 995 or 999.0 fine content.
Another tip: The same applies to investment gold as it does for expensive jewellery at holiday destinations. NEVER buy gold, even if the price is tempting. Verifiable products from Good Delivery manufacturers there are an exception to the rule. Various certificates for jewellery, gold and silver bars and coins have proved to be mostly worthless or inferior counterfeits.
You should buy Good Delivery bars if you wish to invest your money in bars made of gold and silver! We are often asked whether it is better to invest in gold bars, silver bars, gold coins or silver coins. Our consulting service at our branches in Vienna will be happy to help you decide which investment form is right for you.
If you have any questions, please don't hesitate to contact us or call into one of our branches in the 9th or 22nd districts. We look forward to seeing you!
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