What we can offer you at this stage is an offer for up to 5MT per month for 3 months. If the contract is running smoothly it will be extended up to any agreeable time. The discount is 7% gross and 5% net to the buyer. The buyer will be required to establish a BG or DL/C for the full quantity of 15MT. Deliveries are done 5MT per month and client need not pay each and every month but will only pay with the third delivery for the full quantity of 15MT. Once the BG or DL/C is submitted and verified by seller's bank the seller will issue a similar document for 2% as Performance Bond. The bank instrument submitted by the buyer will always remain lodged in seller's bank for buyer's verification to ensure that no misuse is made of this document.
In attachment you will please find the draft contract for your buyer's perusal. Please let me know if you may have any questions.
As we know that gold at present is not located anywhere because this is Production Gold and it still has to be produced. The gold itself does not get paid before the Buyers actually verify the metal. As we know it, once the Buyer will establish an L/C or BG in favour of the Sellers for the full amount of 15MT, the Sellers start delivering at the rate of 5MT per month and they are not required to release any funds with each delivery. They will only pay for the 15MT about 72 hours after the third delivery of 5MT would have been done. The Sellers are normally using Rand Refinery for refining, hallmarking and certifying the gold. So this should be no problem with the Buyers.
KINDLY NOTE THE FOLLOWING ANSWERS:
THE GOLD IS FROM SOUTH AFRICA AND POSSIBLY FROM OTHER AFRICAN STATES AS
THE SELLERS DEFINITELY HAVE AN EXPORT LICENCE.
THE DISCOUNT IS 7% GROSS AND 5% NET.
DELIVERY WILL BE CIF TO ASWT.
Please understand that nobody is asking anyone to block millions of dollars against a blank piece of paper. What I want from the Buyers is to state that they agree with the conditions and procedure of the draft contract. Once they agree to this I will tell you to whom (seller) to address an LOI. As soon as the LOI is accepted and there will be no peculiar conditions, a fully responsible and committing FCO will be issued in favour of the real buyer. These sellers will not issue any FCOs unless they know that they have a real buyer interested in their offer. Up to the recent past some of their offers were ending all over the internet and incredibly enough amended in such a way to make them more attractive to prospective buyers. The sellers want to make a stop to this abuse.
The other thing that must be pointed out is that the gold does not exist. This is gold that is to be mined but sellers are sure of supplies. I mean they will be sure once they issue the FCO and even the FCO it will be valid only for a number of days within which the buyer must confirm it otherwise it becomes null and void. So at the time of the signing of the contract the sellers cannot give immediate POP. If one reads properly the draft contract this is all written there. The sellers will set up a 2% Performance Bond in favour of the buyers and they will also show the commitment that there be between the sellers and the suppliers of the gold for the supply of that particular contract.