All valid gold transaction Offers will eventually land at the banks’ doorsteps. They can and will wait for valid transactions. They will not, and are prohibited by law, regulation, policy, and long-standing tradition from chasing deals as you demand.
Failure to Recognize Market Realities—Sellers
Most “Sellers” of gold are not Sellers of gold. Under international law a Seller who offers to sell a product not already in his possession and control with free, clear, and transferable title, such that the product may be immediately transacted for its intended purpose IS COMMITING A FRAUD. Most purported sales Offers are fraudulent. A plain and simple tipoff is a demand that the Buyer prove himself first. This is a direct indication that the “Seller” does not have the gold to sell. Instead the “Seller” wants to use the Buyer’s purchase commitment to buy the gold from someone else. These attempts are illegal and are actively avoided by all valid Buyers.
Failure to Recognize Market Realities—Irregular Transaction Attempts
Many brokers and many of their purported “Sellers” complain about the many invalid “Buyers” out there. There are no invalid Buyers for large gold transactions. There are valid Buyers (banks and governments). And there are people who attempt but who will fail to be Buyers. These “fail-Buyers” are those that accede to demands such as included in your incomplete proposal. A “fail-Buyer” attempts to buy with the purchase product collateralizing the purchase price. This does not work. It is a rare bank (and a dumb bank) that will accept non-GLD gold as collateral to support a purchase. The “fail-Buyer” will eventually fail to obtain purchase financing and the deal will fall through.
Bottom Line:
If you want to sell gold, then please have your seller conform to law and market realities.
The first step is to make a legally valid Offer….Hence, the standard procedures we follow and as delineated below:
1. Seller issues signed Full Corporate Offer (FCO).2. Buyer returns signed Letter of Intent (LOI) indicating acceptance.3. Seller issues/delivers to Buyer a signed Purchase and Sale Agreement;4. Seller supplies to Buyer evidence of legal ownership, current Assay Report, bank statement.5. Seller provides a letter from their bank indicating that the Seller is ready to commence the contract and that the Bank is ready to transact with full bank responsibility.6. On successful verification of the documentation identified in clause (d) the Buyer will arrange an acceptable institutional Payment Guarantee for the full contract value as instructed by the Seller.7. Buyer and Seller lodge contracts with their respective banks.8. Seller’s bank will SWIFT to Buyer’s bank confirming the existence and transferability of merchandise;9. Buyer’s bank will respond by SWIFT with confirmation of payment;10. Transaction is completed electronically with exchange of AU and Funds on a bank-to-bank basis.