The Seller has contacted his Bank or Refinery to set up the sale and has been
advised how much product they are holding in his name, how quickly they can
move the product and what they will charge for their services. This will be in
-When the product was deposited, there will be a receipts from the Bank or
Refinery as to quality, quantity and ownership.
-If the product is in a vault there will be vault charge receipts available.
Any time the Seller wants to sell, the Bank or Refinery are to confirm the
transaction to any potential Buyer without naming the Seller or disclosing any of
his account information.
A Mandate or Agent works for either the Buyer or the Seller. Any fees paid to
them will be a separate agreement and not disclosed in the sale/purchase
agreement. If they are listed as receiving fees on the transaction, they are
probably self appointed (not by the Buyer or Seller).
Fees to be protected are usually established by the Seller and will be covered
in the original offer of sale (if the offer comes to you at a 7% gross, 6% net it
means all brokers and intermediaries divide 1%).
Don’t think brokers and/or intermediaries can start cutting up the discount or
control the transaction, IT WILL NOT WORK.
The offer (from the Seller or Mandate) should reflect the total transaction
including quality, quantity, delivery to Buyer’s Bank, discount, and fees to be
protected. It should also state their ability to prove the transaction.
An offer for some ridiculous amount of product (5,000 or 10,000 metric tons or
more) should be suported with additional documents and it must be proven
If you are trying to sell the product to us, you should realize the
Any Buyer will block funds for a transaction only after he has a reliable Bank or
Refinery confirmation that they are in control of the product and can guarantee
quality, quantity, delivery to the appointed buyers Bank, discount and any fees
are contractualy protected.
Buyer will NEVER take delivery - FOB in Indonesia, Singapore, Hong Kong,
Thailand, Philippines, Ghana or any other third world countries. DON’T ASK, IT
WON’T HAPPEN! Plan on delivery to his appointed Bullion Bank or LBMA
certified refinery in Europe or North America- CIF, procedure. The Seller’s Bank
or Refinery can arrange shipping, insurance, handling, export and import duties
and re-refining if necessary, unless diferently agreed by buyer.
Buyer won’t pay for anything other than the Good London Delivery product (not
shipping, handling, insurance, duties, refining, storage fees, etc.).
Don’t confuse discount with profit. Gold is an asset, cash you can spend. If the
price of gold goes up, his asset is worth more, if it goes down, his asset is worth
He will commit to buy up to and including TBA metric tons (that is the price of
gold on the second London fix times 32,140 ounces is the price of one metric
ton) with roll and extensions. If the Selling Bank or Refinery guarantees offered
commodity, buyer will commit to buy all confirmed amount with his Bank
guarantee for full offered amount!
Buyers Bank guarantees payment for product (on his behalf) and guarantees
him that he gets funds for what buyer agreed to paid for.
A real Seller of gold understands, through his Bank or Refinery, that a real
Buyer will not commit funds for any transaction until that transaction has been
Should you have any further questions or concerns feel free to contact us;
Eurobrand Inc. Team