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Gold Buying Procedure

Gold Purchase Procedure

 

Welcome. To ensure a secure, transparent, and legally compliant transaction, our company follows a strict multi-step vetting and purchasing procedure. Below is the step-by-step process required for potential clients looking to source gold through our established supply channels in Ghana, the largest gold exporter in Africa.

 

 

Step 1: Corporate Introduction & KYC

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Before any commodity specifications or procedures are discussed, the potential buyer must formally introduce their organization.

  • Action: The buyer submits a formal Company Profile (CP) along with a Know Your Customer (KYC) package.

  • Purpose: This allows our compliance team to verify the legitimacy of the purchasing entity, its ultimate beneficial owners (UBOs), and its financial capability to execute the transaction.

 

Step 2: Mutual Non-Disclosure & Non-Circumvention Agreement (NCNDA)

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To protect our proprietary trade secrets, supply networks, and corporate relationships, the identity of our Ghanaian supplier will not be disclosed without legal safeguards.

  • Action: Both parties review, execute, and sign an ICC-compliant NCNDA.

  • Purpose: This legally binds both companies to strict confidentiality, ensuring that the buyer cannot bypass our company to deal directly with the Ghanaian supplier.

 

Step 3: Issue of Corporate Offer & Pricing Structure

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Once the NCNDA is fully executed and the buyer's KYC is cleared, we will bridge the gap between the buyer and our supply source.

  • Action: We will present our Ghanaian supplier’s credentials and issue a formal Full Corporate Offer (FCO) detailing the product specifications (purity, fineness, form), origin, and delivery terms (FOB or CIF).

  • Pricing & Discount Mechanisms: Pricing is typically pegged to the London Bullion Market Association (LBMA) second fixing. However, a discount on the gross/net price can be negotiated based on the following financial commitments:

    • Advanced Payments: Buyers willing to provide upfront mobilization or advanced payments for logistics and mining operational costs can leverage these funds for a higher discount percentage.

    • Financial Guarantees for Large Volumes: For high-volume allocations, the issuance of an operative, Cash-Backed Standby Letter of Credit (SBLC) from a top-tier bank will unlock preferential volume discount tiers.

 

Step 4: Letter of Intent (LOI) & Proof of Funds (POF)

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The buyer reviews the FCO and, if acceptable, moves to formalize their intent to purchase and lock in their discount structure.

  • Action: The buyer issues a formal Letter of Intent (LOI) or Irrevocable Corporate Purchase Order (ICPO), accompanied by a bank-to-bank Proof of Funds (POF) or a bank comfort letter confirming the availability of the cash-backed SBLC or advanced payment capability.

  • Purpose: To demonstrate that the buyer has the immediate financial liquidity to clear the requested volume of gold under the agreed financial structure.

 

Step 5: Draft Contract Review & Signing

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With financial and corporate vetting complete, the transaction enters the legal structuring phase.

  • Action: A draft Sales and Purchase Agreement (SPA) is generated. Both parties review, amend where necessary, and sign the final legally binding contract.

  • Note: The SPA will explicitly outline the exact discount rate achieved, the terms of the advanced payment or SBLC, assaying procedures, refinery choice, logistics, and banking coordinates.

 

Step 6: Assay, Export, and Settlement

The final phase involves the physical movement of the commodity and the release of funds.

  • Action: 1. Pre-Assay: The gold is inspected and preliminarily assayed in Accra, Ghana, for export documentation. 2. Logistics: The gold is shipped by Air via Emirates SkyCargo or KLM Specialized Safe 1, then shipped locally at the destination country via an accredited secure bullion carrier (e.g., Transguard, Brinks, Malca-Amit, etc…) to the buyer's designated refinery. 3. Final Assay & Payment: Final payment is triggered immediately upon the buyer's destination refinery issuing the final assay report, paid via Bank Wire Transfer (T/T) or via the drawdown/settlement mechanisms of the agreed financial instrument, factoring in the negotiated discount.

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Compliance Note: Our company strictly adheres to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas. We do not tolerate any form of illicit trade, money laundering, or unethical sourcing.

 

Thank you for reaching out. Please note that our strict corporate policy prevents us from engaging in transactions involving multi-layered broker chains. We require a direct, verifiable line of communication to the end buyer before we can share any corporate offers or procedures. If you are able to bring the principal directly to the table, we would be pleased to review the opportunity.

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