Let me start by saying that this Gold Buyers Procedure page is given for reference only as a typical example of a transaction. EVERY client is different just as EVERY contract is different, quantities vary, prices, time schedules and even countries. Whilst all terms are up for negotiation it gives new buyers a good guide of what we will expect from them as much as the service they will receive from us.
We are an independent company set up to liaise between buyers and sellers on gold transactions, often acting as either buyer or seller ourselves within the deal. Due to the amount of fraud in the system and the number of sellers claiming to hold gold reserves an alternative solution was needed to assess claimants on an individual basis.
Our procedures are there to protect both the buyer and the seller and all recorded details are held in the utmost confidence under a strict set of regulations governing their use. No deal can be considered to have been successful if both parties have not achieved their desired goals.
We require a limited amount of paperwork from our clients and nothing that will not be required later on during the transaction, this ensures our clients incur no extra time, effort or cost. Our procedures are simple and effective yet flexible enough to incorporate your personal requirements.
Why use us? Simple. We are the ONLY company offering this service due to our unique position in the market and our extensive knowledge of the largest refiners, private and corporate sellers and buyers on the planet. Plus of course our world class knowledge of gold fraud and over a decade of experience in the business.
Many clients will have already suffered at the hands of the fraudsters and seen their contracts spread around the brokers or attempts to use their financial instrument as collateral to purchase gold against a contract they have already signed. Its time to use a trusted and confidential service.
GOLD BUYING TYPICAL PROCEDURE
Firstly we would start with a meeting or conference call to find out exactly what you want and how best we can work together to achieve it. Following on from this we would exchange paperwork and sign contracts to agree terms and costs.
The first part of our job is to spend time negotiating with the seller prior to travel, so that basic terms of an agreement are settled before any expenses are incurred in travel and accommodation.
Real gold dore transactions will require us (as your representative) to travel to the country of origin to inspect the product and meet face to face to sign contracts and agree final terms with the seller.
Predominantly these deals range from 50kgs up over 1000kgs with costs of the royalties (government taxes), paperwork, shipping and insurance paid up front at an absolute minimum requirement, though paying up front in full and taking immediate delivery is more common and safer (our recommended option.)
Once ownership has been established the product would be shipped to a suitable refiner for assay, smelt and sale. At which point payments are made and our job is complete. We would be there from start to finish to ensure that you get the best deal available to you.
Anyone who has ever dealt in gold will realise that this is a very simplistic view of a transaction involving many hundreds of steps including security teams, armed guards, government and independent assays plus complex safety procedures and regular spot checks, but that’s our job and we know what we re doing from previous experience.
When we act on behalf of a client there are three parts to our payment. A day rate, expenses and a percentage of profit. These costs cover the whole team and include the fraud team, online team and on ground personnel. There are 2 options :
Firstly a day rate of $5000 (weekly rates can also be negotiated), with all reasonable expenses paid. (ie, flights, accommodation, meals)
Or alternately a day rate of $2500, with all reasonable expenses paid and a percentage of the profit on the completion of a successful deal.
We always suggest that travel be via Emirates Airlines as their hub is based in Dubai and they fly to most of the African countries we deal with. All flights are to be at least Business Class, though we do suggest First Class when travelling with product (if hand carrying) due to the allowances made by the airline.
Accommodation should be 5 star (African 5* is not the same) and suitably placed to allow easy transportation links between the sellers offices, government buildings and airport to minimise delays. We are more than happy to arrange all of this ourselves as we’ve been there before and already know the area.
Someone once queried me on the cost of my daily rate and I quoted the famous story / anecdote of the engineer who used a hammer to fix the machine at the factory in a matter of minutes and then invoiced a seemingly large amount. Justifying the invoice in that it was not for the time spent but in knowing where to spend it. You are not paying for the time I work for you, you are paying for the value of my knowledge and that of my team. A knowledge built up over a decade at the cost of millions a year invested in becoming the worlds foremost expert in this business.