The CIF Gold Scam

Time and again we see numerous fake profiles, random emails, ‘mandates for refineries’ and scammers offering to purchase Gold CIF. While there are some large companies that ask for this legitimately, why do I say its a scam?

There’s a very simple answer to this. Gold IS money, it has value and that’s why everyone wants it. If you are asking a seller to bring ten million dollars of gold to you (approx 250kg) then that will cost him in the region of $1Million USD for all taxes, paperwork, shipping, insurance, security, etc, etc. Obviously not including the original purchase price / production cost.

Of course there are also many risks involved in transacting in something with such a large value, which you are asking the seller to take on himself. After which you are offering to then pay him less than its current value as you want it at a discount.

When you think about it it is obvious why sellers don’t do CIF, isn’t it?

Real Gold transactions are done on the ground, face to face, by professional experienced gold teams. PLEASE scam buyers, stop posting these ridiculous CIF offers, the only response you’ll get is from the fake sellers.