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How Gold Refining Works: From Doré to Investment-Grade Bullion

Gold refining turns variable doré alloy into assayed gold for different markets. Learn what the process involves and why investment-grade does not automatically mean London Good Delivery.
From TheFinanceBase Team5 min to read
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Gold refining turns mined doré—an alloy containing gold and other metals—into assayed gold that can be cast for different markets. The exact refining route and final purity depend on the incoming material, the refinery and the customer’s specification. “Investment-grade” is not the same thing as London Good Delivery: that status applies to bars meeting a specific wholesale standard, not every product made by an accredited refinery.

What is doré, and what reaches a refinery?

Doré is a bar of newly mined gold alloy produced after ore has been processed and smelted to concentrate its metals. It is feedstock for further processing, not a bar of pure gold. LBMA describes doré as normally 85%–90% gold, but that is a general description rather than a guaranteed intake specification. The Royal Canadian Mint says its pre-melt stage handles doré bars containing about 70% gold, illustrating how composition can vary by source.

The refinery weighs and evaluates incoming material, then determines its composition and the appropriate processing route. What a refinery accepts and how it handles a particular lot depend on its own capabilities and specifications.

How does gold refining work?

1. The refinery receives, weighs and melts the material

At a high level, incoming metal is weighed and melted so it can be sampled and assessed. The Royal Canadian Mint describes a pre-melt stage as part of its process; other refineries may use different sequences and methods.

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2. An assay measures the gold content

An assay determines the precious-metal content of a sample. Along with the lot’s weight, the measured composition helps establish its fine-gold content and therefore its commercial value. The assay is not merely a purity label: it helps determine how much gold is present in material that also contains other metals.

LBMA monitors the assaying competence of Good Delivery refiners through supervised samples and referee check assays. That independent checking supports confidence in a refiner’s measurements; it does not mean that every item from that refiner is a Good Delivery bar.

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3. The refinery separates gold from other metals

Once the material has been assessed, the refinery processes it to separate gold from unwanted metals. There is no single universal route or chemistry established for all refineries: the feedstock and the refinery’s process affect the appropriate method and result.

4. Refined gold is cast for its intended market

After refining, gold can be cast or made into products for different customers and uses. The Royal Canadian Mint describes both investment products and collectible coins among its gold outputs. A product’s format and specification depend on its intended market.

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The Mint says its refining process can take gold from a standard 99.5% to exceptional purity of 99.999%. That describes the Mint’s stated range, not a universal endpoint for every refinery or batch.

What makes a gold bar investment-grade?

“Investment-grade” is used broadly for gold products intended to be held as investments, but it does not by itself identify one universal bar standard. For a particular bar, the relevant questions include its purity, gross weight, fine-gold weight, format, identifying marks, provenance and intended market. A retail bar may be a legitimate investment product under the norms that apply to it without qualifying as London Good Delivery.

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London Good Delivery is a specific LBMA standard supporting settlement of Loco London wholesale bullion contracts. Its requirements cover more than fineness: they address fine-ounce weight, appearance and identifying marks as well as gold content. LBMA’s OTC guide sets a minimum fineness of 995.0 parts per thousand. Qualifying gold bars are typically around 400 troy ounces, within the permitted fine-weight range, and carry a serial number, refiner’s assay stamp, fineness and year of manufacture. The latest LBMA Rules should be consulted for current dimensions and tolerances.

Accreditation belongs to a system, not every product

LBMA’s Good Delivery Lists identify refiners accredited to supply qualifying bars, and listed refiners are subject to ongoing monitoring. Accreditation does not make every bar or other refined product from that refiner a London Good Delivery bar. A one-ounce retail bar and a wholesale Good Delivery bar should not be treated as interchangeable merely because both contain gold of high purity: their weights, formats, markings and intended markets differ.

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Question Retail gold bullion bar London Good Delivery gold bar
Intended market Retail investment market; applicable product norms vary. Loco London wholesale bullion settlement.
Typical format May be a one-ounce bar; products vary. Typically around 400 troy ounces, within LBMA’s permitted fine-weight range.
Fineness Check the specific product’s stated specification. At least 995.0 parts per thousand under the LBMA OTC guide.
Identifying marks Check the individual bar and seller documentation. Serial number, refiner assay stamp, fineness and year of manufacture are required.
What establishes its status? The product’s own specification and relevant market norms. Compliance with Good Delivery requirements and production by a qualifying refiner.
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Why purity alone does not tell the whole story

Fineness states the proportion of gold in the metal, but it does not establish a bar’s weight, fine-gold content, identity, chain of custody or eligibility for a particular market. Those details matter when comparing products or deciding whether a bar can serve a specific wholesale settlement purpose. Check the bar’s markings and documentation against the standard relevant to its intended use rather than relying on the word “investment-grade” alone.

  • Doré is variable alloy feedstock: it is not pure gold, and its composition can differ from the typical range.
  • Assay connects weight to value: measured composition helps establish the fine-gold content of a lot.
  • Purity targets depend on the refiner and specification: the Mint’s stated 99.5%–99.999% range is one refinery’s description, not a universal rule.
  • Good Delivery is a specific wholesale standard: refiner accreditation alone does not confer that status on every product.

Sources and standards

Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.

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