Good Delivery gold bars: what are they?
Good Delivery certification is issued by the LBMA (London Bullion Market Association) which co-ordinates the wholesale trading of gold and silver. This association updates and publishes Good Delivery lists of accredited companies/refiners, in which we find a set of criteria to which a refiner and its precious metal must conform before being admitted to trading.
The refiner must:
- have been producing refined metal for at least 3 years
- have a corporate and administrative structure controllable by LMBA;
- produce a minimum of 10 tonnes of gold and 30 tonnes of silver per year;
- have total net assets of at least £10 million.
Periodically, producers are audited on gold and silver bars to verify the same quality.
Good Delivery gold and Good Delivery silver must:
- be in bar form
- be of a minimum purity of 99.9% (for silver) or 99.5% (for gold); and
- weigh between 750 and 1100 ounces (silver) or between 350 and 430 ounces (gold);
- be measured in troy ounces (silver) or fine troy ounces (gold).
Chimet-branded LMBA gold bars: an Italian story
OROvilla is not LBMA-certified, but we wanted to turn to an Italian refining company of great stature for this type of bars: Chimet.
Since 1976 it has been a leader in Italy in the recovery and production of gold and precious metals, as well as in refining and recovery from industrial processing waste.
Production is entirely based in Italy, in Arezzo, Italy's goldsmith heartland. OROvilla offers 'Good Delivery' quality 24-carat pure gold bars under the Chimet brand name, with a serial number guaranteeing product traceability and authenticity.
Like OROvilla, Chimet is also one of the 850 companies certified by the RJC (Responsible Jewelry Council) for sustainable gold.
Why buy Good Delivery gold bars?
Although gold, as they say, does not pay coupons and does not guarantee a regular income, it has the undeniable advantage of being the safest investment product in the long run, much more so than other safe haven assets, government bonds and other financial products. With physical gold, you secure your savings in a physical asset that is as easily liquidated as money, but whose value, unlike cash, remains unchanged over the years.
The possession of pure physical gold in the form of gold bars or investment coins, also called bullion coins, has always been the safest form. Investing in physical gold therefore remains an essential step even for those who want to diversify their portfolio in an intelligent way.
Gold is an important asset for every investor because:
- it allows diversification against strong stock market tensions;
- it provides protection against shocks to government bonds;
- gold's ownership as a safe haven asset
- it gives you a sense of security and concreteness;
- is easy and quick to liquidate;
- allows trading between private individuals;
- ensures transparency of quotations.
What are the tax advantages of LMBA gold bars?
Buying LMBA gold bars is attractive from a tax perspective, as with all gold bars and investment gold. Buying investment gold, in the form of gold bars or gold coins, is exempt from VAT.
There is one form of taxation applied only after the sale, which must be included in the tax return. This is taxation on the capital gain, a substitute tax at a fixed rate of 26%. In the case of gifts or inheritances, no tax has to be paid to the state.
That is why it is always important to keep the invoice for the purchase of gold bars. In fact, if you do not have the purchase invoice, a flat rate of 25% will be charged.
The different sizes of Good Delivery gold bars
Good Delivery gold bars are available in 3 different bar sizes. Buying such large bar weights has the undeniable advantage of lowering the cost of smelting and processing gold.
The usual weights for LMBA gold bars in the OROvilla store are:
- LBMA Chimet cast gold bar 1000g
- LBMA Chimet cast gold 500g bar
- 250g cast gold LBMA Chimet bar
How to store Good Delivery gold bars safely?
Storing LMBA gold bars and investment gold in general is a question that needs to be taken seriously. In the case of LMBA bars that are large in size and value, it is certainly more prudent to avoid storing them at home and opt for a safe deposit box at your bank or a gold storage service, such as the one we offer at OROvilla.
Gold is certainly safer in a vault or safe deposit box, where it will also be insured in case of theft. This service has a very low and affordable cost, which is worth considering. However, it is important that you also consider the convenience for you in case you need to repossess the gold:
- choose a safe deposit box close to home;
- choose a vault that can guarantee you a fast and secure shipping service;
- choose a company that can, if necessary, buy back your physical gold and convert it into cash.
How to resell gold bar?
Since gold bars are in high demand and highly liquid assets, they are very easy to sell. Buying gold bars is offered by precious metal dealers, Compro Oro, banks with precious metal counters, private forums or online auctions. However, it is important that the buyer is licensed and certified so that your sale is conducted safely and at the right price.
Orovilla also buys investment gold bars of significant value, such as bars weighing 250 grams or more; you can divest your gold bars at any time.
The ability to sell physical gold in any form and condition, at any time and place, is its advantage over other forms of investment.