Eight metals are counted as precious metals, but only a few are traded in large volumes. Here is what precious metals trading means and how companies buy physical metal from accredited sources.
The precious metals are gold, silver and the six platinum group metals.
Physical trade in bars follows standards such as LBMA and LPPM Good Delivery.
Companies buy physical metal only after full KYC and anti-money-laundering checks.
Precious metals are rare, naturally occurring metals with high economic value and strong resistance to corrosion. There are eight: gold, silver, platinum, palladium, rhodium, iridium, ruthenium and osmium.
| Metal | Symbol | Group |
|---|---|---|
| Gold | Au | Precious metal |
| Silver | Ag | Precious metal |
| Platinum | Pt | Platinum group |
| Palladium | Pd | Platinum group |
| Rhodium | Rh | Platinum group |
| Iridium | Ir | Platinum group |
| Ruthenium | Ru | Platinum group |
| Osmium | Os | Platinum group |
Gold and silver dominate the market, followed by platinum and palladium. Rhodium, iridium, ruthenium and osmium are traded in much smaller quantities, mainly for industrial uses.
Gold serves as a reserve and investment asset and in jewellery and electronics. Silver is used in industry, for example in electronics and photovoltaics, as well as in investment products. Platinum and palladium are important in catalytic converters and in the chemical industry. The minor platinum group metals are mostly supplied as sponge or powder for specialised industrial applications.
Precious metals trading is the buying and selling of precious metals, either as physical metal such as bars and grain or as financial contracts such as futures, options and exchange-traded products.
The global wholesale market for gold and silver is centred on the over-the-counter market in London, alongside exchanges such as COMEX in New York and the Shanghai Gold Exchange. For companies that need real metal, the physical market with its delivery standards, refiners, vaults and logistics is what counts.
Physical metal is real metal held in a vault or delivered to the buyer. Paper metal means financial claims or contracts whose value follows the metal price without the holder owning specific bars.
| Physical (allocated) | Paper / unallocated | |
|---|---|---|
| What you own | Specific bars, identified by number | A claim or contract |
| Typical forms | Bars, grain, sponge | Futures, options, unallocated accounts, ETPs |
| Main risk | Storage, transport, insurance | Counterparty and contract risk |
| Users | Refiners, industry, institutions | Investors, hedgers |
Andalucia Premium works only with physical metal between institutional counterparties.
Good Delivery lists define which refiners’ bars are accepted in the London and Zurich wholesale markets. LBMA sets the standard for gold and silver, LPPM for platinum and palladium.
To be listed, refiners must meet requirements for bar quality and for responsible sourcing. Good Delivery bars must meet specifications for weight, fineness and markings. For buyers, bars from accredited refiners make verification, storage and resale considerably easier.
Companies buy physical metal by contract from refineries, bullion banks or wholesalers after a full KYC and anti-money-laundering check. The metal is assayed, weighed and handed over in a secure vault or delivered by an armoured carrier.
Wholesale prices refer to benchmarks such as the LBMA Gold Price and LBMA Silver Price and to the continuous over-the-counter and exchange market, plus premiums or discounts for form, fineness and location.
Smaller bars, special fineness or delivery to remote locations usually carry a premium over the benchmark. We do not publish prices; they are agreed per verified transaction.
Because precious metals concentrate high value in small volume and are easy to transport, they are a known target for money laundering, sanctions evasion and conflict financing.
Dealers and intermediaries are therefore subject to strict due diligence rules in many jurisdictions. Guidance such as the OECD Due Diligence Guidance and the LBMA Responsible Gold Guidance sets expectations for documented origin and chain of custody. We work only with institutional and commercial buyers and never with private investors.
Last updated: October 2026This page provides general information about trade practice. It is not legal, tax or investment advice.
No. Copper is a base metal: it is valuable and widely traded, but it is far more abundant and corrodes more easily than precious metals.
Platinum, palladium, rhodium, iridium, ruthenium and osmium. They occur together in nature and share similar chemical properties.
Gold bullion suppliers are refiners and bullion banks that produce or hold bars, while dealers buy and sell them, often to smaller clients. For institutional purchases, accredited refiners and established wholesalers are the usual sources.
The wholesale market trades across time zones on working days, with London, New York and Shanghai as main centres. Physical handovers in vaults follow the opening hours of the vault operators.
No. We work only with companies and institutional counterparties that pass a full KYC and anti-money-laundering check.
Allocated gold is specific, numbered bars held in a vault in the owner’s name. Unallocated gold is a claim against the provider for a quantity of metal, without specific bars.
Commodity broker meaning, the tasks of a physical commodity broker, how brokerage charges usually work and broker vs trader.
Read the guide08Spot price, LBMA benchmarks, troy ounce conversion, bid/ask, premiums by bar format, doré discounts and price clauses.
Read the guide12The typical sequence of a brokered commodity transaction, the role of each party and why the order of the steps matters.
Read the guideTell us the product, specification, quantity, delivery window and destination port. We will reply personally with the next steps.
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