Deciphering the jargon

If you’re new to buying gold then deciphering the jargon can be a challenge. We get a lot of questions from first time buyers as to whether it is better to buy locally manufactured gold such as our NZ Pure range or bars from internationally accredited refineries such as PAMP. Materially, gold is gold and there is no difference between the two – but understanding what’s what and arming yourself with information is something we recommend.

Registered refineries

The London Bullion Market Association (LBMA) was established to protect large refineries. Founding members include Rand Refinery, PAMP of Switzerland, Bank of England and Metalor (also from Switzerland). Closer to home the Commonwealth Bank of Australia, Westpac and ANZ are all full members. To be a member of the LBMA you need to be producing a quantity of gold and silver which is much higher than what is produced in New Zealand – hence, we don’t have members of the LMBA here in New Zealand – our market is simply too small.


What are the benefits of LMBA registered product? The main benefit is when selling into the banking system the product doesn’t need to be rechecked for its purity or authenticity – and as long as it stays within the banking system this remains the case. For NZGM there is no necessity to be part of the LMBA because we don’t sell ourselves into the banking system.


Good Delivery – is the specification or set of rules issued by the LBMA which describes the physical characteristics of gold and silver used in settlement in the London Bullion Market.   It also stipulates the requirements for listing on the Good Delivery List – a list of approved refineries. Good Delivery bars are usually traded in the major international markets (Hong Kong, London, New York, Sydney, Tokyo, and Zürich) and in the gold reserves of governments, central banks, and the IMF.


Gold bars – must have a gold content of between 350 – 430 troy oz, marks which include; a serial number, refinery trademark, year of manufacture and fineness. They also need to fit within certain dimensions.


Silver bars – have the same mark requirements and must have a silver content of between 750 – 1100 troy oz. These are large bars destined for mass storage.


We may not be registered with the LMBA but we govern our business under the Global Precious Metals Code – a set of guiding principles expected of participants in the Precious Metals market. Our products adhere to the same purity standards – which means the quality of gold you’re getting is the best in the world. We buy all gold at the same price, whether manufactured overseas or locally, and with our NZ Pure brand of bars we’ll always buy them back. The difference when it comes to buying gold is that with locally refined bars you’re not paying import taxes, margins or international freight – which means you actually get more gold for your money and the margin is even bigger when it comes to silver.