All about African gold deals, the reality shock factors
Trying to make a gold deal with African gold suppliers? Welcome to the page where you get to read all essential facts about African gold deals, we call it the reality shock factors, as yes, you might be shocked to find out you have wasted months and maybe even years in attempting to close the deal with African suppliers on distance. Some intermediaries are living in fantasy in the nice and warm place behind their computers, trying to get commission on "gold with discounts", especially when arriving from Africa.
The virtual market place on Internet, LinkedIn, Tradekey and other business to business online marketplaces is more than abundant of various gold trade deal offers. Gold dust, gold nuggets, gold dore bars, FCO, [LOI], POP, POF, MT103, MTN, bank guarantees, SBLC, letters of credit, Aurum Utalium, Aurum Uranium, reliable, reputable, gold mining communities, and so on, all that is the terminology belonging to the virtual pretended market place as built by many of the fraudulent criminals from Africa and as supported by naive and lured so called "buyers" and many of intermediaries hoping for the better future.
What if I tell you, that is not how true gold dealing, purchasing and selling is done in Africa?
- Shocking Facts on African Gold Deals
- Fact Number One - Most of the deals and offers of gold from Africa are scams
- Fact Number Two - Chances are that you are not qualified for gold trade
- Fact Number Three - Local buyers are everywhere
- Fact Number Four - Spot prices are paid locally
- Fact Number Five - There are genuine gold deals in Africa
- Offering benefits in exchange for gold deals
- How else you can make profits on gold business
FACT NUMBER ONE: Most of the deals and offers of gold from Africa are scams, fake and fraudulent gold deals. What you see on pictures is brass or yellow painted metal, and not gold. If you happen to see real gold and touch it, chances are big that you are never going to take it out of the country, as the scam is better than your qualification to buy it.
FACT NUMBER TWO: There are big chances that you are not qualified to recognize if such deal is real or fake "Recognizing real and fraudulent gold trade deals") and thus you are luring other genuine people, buyers and intermediaries into believing that there is some gold cheap out there, however, what you do in reality, you are perpetrating fraud yourself and inciting and supporting criminal enterprise.
FACT NUMBER THREE: A local gold miner has local gold buyers where he sells the gold and that was the main reason for the small scale miners to open up a gold mine in the first place. Do you really think that any small scale miner needs you outside, out there, in the foreign country to sell to you, when he can sell it locally?
FACT NUMBER FOUR: Spot prices are available in each of the African countries. Yes, gold may be sold locally everywhere in Mali, Ghana, Sierra Leona, Burkina Faso, Tanzania, Congo and many other African countries. This alone shall appeal to your common sense, and if there is any gold trade deal out there that might be genuine, it shall be very well justified to go around this fact. Some refineries like AA Minerals in Ghana are going to pay 2% discount for any gold that is brought to them. Some dealers are paying spot prices and very often above the spot price. Large quantities are rare, and if you really wish to get the gold, instead of discount, dealer is going to pay better price just to get it. The large players in the market are converting cash for gold and they are paying for the speed. It is easier to win the Bingo than to close the deal on distance without being qualified for it.
FACT NUMBER FIVE: There are actually gold deals that are genuine. But they are not going to appear on Internet. You must go on the ground, explore, meet the people, make the connections, know your stuff, and you always need to give some benefits to miners and gold dealers in order to gain any profits on such.
Let me elaborate a little closer:
For the sake of your time and energy that you are putting into the hope to earn some money with African gold deals, for practical reasons, you should consider all African gold deal offers as fake and fraudulent offers.
Most of the gold you see on the pictures arriving from Africa is brass or lead painted in gold color. Gold dust may be yellow, but it is not everything that shine the true gold. Even if you see some true gold on pictures, that is not the gold that you are going get in your hands.
Are you "wannabe" intermediary sitting outside of the location where you are offering the commodity, the gold, or are you truly researching your deal and offering it only then when you know that gold is there? Most of times intermediaries in gold business, try to bring two persons, two businessmen together, the seller and the buyer. However, neither the intermediary, nor seller nor buyer have ever done the true background checks. The intermediary is usually found in a situation not even knowing that gold is dense, heavy, not knowing its specific density and capacities of those gold mines. The intermediary usually have never seen face to face, not even by Internet, that so called seller but is lured and naively tries to close the deal with the buyer who very often also turns out to be yet another intermediary in the chain of virtual traders. And gold is nowhere yet to be found.
Only large companies could provide quantities of gold, like kilograms. Such a large company have assets of many million dollars worth, and those companies are usually public companies, well known such as Randgold, Barrick, Ashanti and not so many others. A big company would not be that big if they would not know where to sell the gold.
Small scale miners are small scale miners. Just that. They are not big companies. They are small communities. You may have 100 people working on the same mining site and getting not more than 3-5 kilograms per month. All those people need to live, need to eat, need to provide for their families, they get their profit share and main owner of the license and the land earns as well. They are selling gold as fast as they get it out of the gold mine. In their whole life they usually never see a whole gold dore bar.
If you would have 50 kilograms of gold, how much assets would you have in total? Maybe double that much. We speak here of millions of dollars. Do you really think that anyone who has assets of few millions dollars does not know where to sell the gold he has bought?
Do you think that any real world trader is ever going to buy a quantity of gold worth millions without knowing where to sell the gold?
Everywhere in Africa gold is being paid almost spot prices. Don't be lured that there is some cheap gold out there, waiting for you and me to make the deals of your life. Nothing to do on your side, just connect the seller and the buyer, and your commissions worth hundreds of thousands of dollars are paid in cash. It would be a dream.
Don't you think that the abundance of the supposed "gold offers from Africa" are not really proportionate to reality of the mining activities in Africa?
If there are so many offers for gold dust, gold nuggets, gold dore bars, why there are so few quality websites showing the reality at ground?
Do you know that small scale miners sell any gold they find as fast as they can and that they rarely if ever make a true and whole gold dore bar out of it?
Do you know that export of gold dust is forbidden in many of the African mining countries? Gold dust must be melted, assayed and never sold in the original form. Further, there is no small scale mining company that will ever have kilograms and kilograms of gold dust, as whoever would have this much gold, they would be able to melt it. You are not going around with "bags of gold dust". Give me a break.
There are actual methods of acquiring gold dust, but that is simply not what small scale miners are doing. They use other methods and the form of gold from a small scale miner could be something gold gold sponge due to the mercury being used and any small nuggets and such gold sponge are going to be melted down. In the real gold market nobody is buying "gold dust". There is no serious and licensed dealer in Africa anywhere that is going to buy "gold dust" ever because they are going to melt it down, assay themselves and pay in cash. Gold dust is not really a form how gold is sold.
You may be a big businessman and very skilled in general by your previous experience, but there are big chances that you are not qualified for gold trade deals originating from Africa.
Answering following questions is going to show you if you are qualified for the business:
- Have you been at place?
- Are you trying to accomplish a million dollars worth business deal on distance without having seen neither gold nor the seller nor the mining activities in Africa?
- Do you know the seller personally?
- Did you meet his wife, his relatives, have you visited his house?
- Have you ever at all seen the guy on picture?
- Have you ever touched that gold? Witnessed melting?
- What do you know about gold itself?
- What is specific density of gold?
- What are other metals usually alloyed with gold when not pure?
- What is specific density of water?
- Did you witness melting of gold?
- Did you ever sold gold yourself to scrap gold or any dealer?
- What is the sound and clang of gold when thrown on floor?
- What is the taste of gold?
- What is the melting point of gold?
- What is brass, what is its taste, the specific density and melting point?
- What is the local gold price available to local gold sellers?
- What is the true reason why would anyone sell gold cheaper than locally available gold price which usually is the spot price?
If you are still in fantasy being lured into thinking that there will be some nice gold deal to accomplish and all you need to do is to bring the buyer and seller together, or any other such combinations, you should first consider the fact that local buyers are everywhere.
Not only that gold is sold near the gold mines, it is sold and traded in any major city and town of any of the African countries that have developed mining activities.
As a matter of fact, most of times, one will get in average more money for the gold than when sold as scrap in Western countries.
Gold is sold for cash and occasionally for bank transfers. Anywhere in Africa is the same. Cash is the king. There is only one true procedure and that is: bring the gold, let me melt it, I am assaying it myself, and I am paying cash. Everything else like formalities and papers may be handled when necessary.
There are no such things as FCO, LOI, POP, POF, bank guarantees, and all the nonsense that is being disseminated on Internet that is based on false information.
Gold is sold for cash. No questions asked.
If you believe that someone out there in Ghana or Mali or Tanzania have any problems selling gold for cash without questions asked, you are lured, naive and most probably you are inciting genuine and decent people to be involved in the criminal enterprise.
Gold is sold for cash. No questions asked.
You maybe think that a local gold owner need an ID to sell gold? Yes, maybe by the law. But practical sales is as such: they bring the gold, the gold is melted, the gold is assayed on the simple water-based scale that measures its density, and gold is paid for cash. No questions asked.
According to the law each dealer is going to keep records of whom they have bought the gold. But how a government official may know that gold come from a small scale miner Mr. Smith if gold dealer can simply write it that it came from the small scale miner Mr. John. Nobody is able to really follow where the gold came from.
Gold is sold for cash. No questions asked.
There is some cheaper gold but one has to be established locally and work with the local company and provide time, effort and energy into making business by purchasing from small scale miners and trading with the dealers located in cities. It is very questionable if profits can be easily made by exporting such gold, due to fact that exporting is costly, there are taxes and royalties to be paid, while quick business may be done with local guys purchasing it at spot for spot prices.
Most of times dealers who purchase gold from miners are going to pay spot prices, sometimes few percentages under the price. Sometimes gold is paid above the spot price.
Gold is sold easily in Ghana for 2% discounted gold price with the AA Minerals and many other local refineries, smelting offices and dealer offices. Selected dealers are going to pay spot prices.
Gold is sold easily in Tanzania for spot prices and above spot prices. Please don't push my nose by mentioning Mali or Congo or something like that. I have done my homework, but have you done it?
Usually, gold brokers are located just nearby the jungle and bush in Tanzania, and they are paying like 5% discount. There are 15 people gathered in open, buying gold in this open hut. They are going to travel to 4 hours distant city and sell the gold for spot prices. Do you really think that anyone in that city would be willing to sell gold under the price, especially in quantities? Nobody is that crazy. People don't give money for free. Would you give few thousand dollars to someone when you can get the spot price just there in your own city? Don't be naive.
Despite all the previous explanations, there are genuine gold deals out there. While there exist no such thing as "large quantity of gold in stock under the price", by putting efforts, making proper local establishment with the company and having good people to work for you, acquiring connections and contracts, and especially by giving benefits to gold owners and miners you may make genuine gold trade deals in Africa.
Gold is rare, very demanded, and reality of gold trade and abundance of brokers and dealers is very little shown on Internet.
Even if you have arrangement to get better price for gold, like 10% discount - you would not think of exporting it, because you can sell it right there for spot price and make 10% earning.
If you are asking me to make sure if some gold deal is real, we are asking the consulting fee amounting not less than €3,500, and we can provide a full due diligence, first of all by checking out that gold is real, smelting, assaying at place and making sure about any administrative formalities.
If you are asking my company to provide you with "quantities of gold under price", that is not realistic as let us say, we have such gold somewhere available, than we can sell it ourselves, and nobody really needs a foreign buyer. We are anyway making local trade and earn money on gold deals. We cannot speak here of any considerable "quantities".
To get any good price with discount, you would need to offer some benefits to gold producers.
Some of the benefits you may offer to local gold producers are:
You can come closer to them into far distant jungle or bush and by local establishment, the company, and cash, you may purchase gold under spot prices. You are putting your efforts, energy, time and expenses into such business. It is quite possible by providing the benefit of becoming closer to the source that you make your profits. The "virtual market" on Internet is quite different, most of times the buyers assume that someone shall bring the cheap gold for "CIF payments" and fake dealers in cities offer FOB cash payments when taxes and export royalties are paid. Such deals are fake. If you wish to offer benefit as buyer, you would need to come to gold mines in not so far but still distant jungle and bush, and provide them quick cash.
You may give them alcohol, food, or some basic equipment and gain benefits, you may provide small scale miners with the clean water source, you may invest into their company, or otherwise bring heavy machines and provide them benefits in exchange for gold deals.
You may enter Joint Ventures and close contracts to get gold cheaper like 10-20% or even more, it is possible to negotiate. You may close forward production agreements. Ask yourself if you are skilled enough to estimate the feasibility of such a project.
Deals on distance - like attempting to make any serious deal by closing on distance, is mission impossible. WHOEVER REALLY HAS GOLD in the mining country, that person can easily sell the gold for cash at the spot and does not really need a foreign buyer. That is like if you have a car of US $10,000 in US, and you know you can easily sell it for US $8,000, but you place advertising on Internet to sell the same car to Japanese for US $7,000 -- which would be complete nonsense, as everybody in your city would know that you may sell it for better price in your own country.
Some good gold purchasing business may be established locally, especially when you are willing to work in far distant areas of jungle or bush -- than you may get gold like every day even few kilograms, with 5-20% discount, depending of the area. You would work long term, as locally established company, and you would sell to the nearest city for spot prices. That requires commitment and persistence, and maybe a good business, but this is not for everyone.
There are some deals that may be done with 10% discount or more, if you take all the steps to provide some companies with long-term bank guarantee, and that all needs personal presence and arrangements of affairs taking time, like you may think of 30 days to arrange it like that. Without local visit and understanding of the whole picture, such deals are not available to you at distance.
There are also deals where you can purchase gold for 10% under price, for some quantities, but personal presence is required, and money must be transferred to local bank accounts. That is hard to accomplish as those sellers will never advertise on Internet, as there are other local buyers to whom they sell.
Because many are frustrated in this business, we have designed something that is real, to make some serious money and profits for those who are ready for adventure and in the same time wish to acquire more knowledge of the local gold trade.
That is our project to Start Your Own Gold Mine and various gold forward production offers.
Start Your Own Gold Mine - Initial setup is minimally US $20,000 for handwork and US $40,000 for minimal machine work with man power. You are not paying that at once, but rather in steps, as the project goes on. First production happens within 45 days. You can come personally, or you don't need to come personally, as we can manage it ourselves for you. The first 3 kilograms of gold is like US $120,000 and net after expenses and taxes, this is what is going to be paid out to you. After that, we can take some 2 kg of gold or simply take enough material from your land to produce another 2 kg of gold, thus you are awarded before you pay for our guidance, training, know-how and consulting. During that establishment, you can buy all the gold in the area and in other far places, and earn some profits aside in gold trade. You take risks, but far lesser risks when if you would be doing it all alone by yourself.
Gold forward production agreement - that is a contract, very similar to the above project, where you can buy gold with cheaper price and you wait for the production. You are basically pre-financing the operation, and you get your benefit as per agreement. For example, you wish to buy 2 kg of gold, you would pay in advance about 30% less, and we establish a new project, and you get 2 kg paid out, whereby the agreement is similar to the above mining solution, only that company is not established for you, and production may be quicker. The money is used directly for purchase of additional machines and there is lien in your benefit on all such assets, until gold is paid out. You are taking lesser risks, but still you rely on the company to produce the gold. The time period is minimum 6 months. Your profit is 30% difference as you paid 30% less in beginning, and you may be speculating with gold price, if it goes down for 30% you may loose some amount or if it goes up, you may win 30% and more.
Those are practical solutions to make income on gold trade and production.
Call manager on +255-626-100-000If you wish to call mentor Mr. Jean Louis for anything relating to Start Your Own Gold Mine simply call the number or on mobile devices click on this phone number +256-626-100-000 to get immediately in touch, regardless of the time zone.
Current location of Mentor to Start Your Own Gold MineI am Mr. Jean Louis, mentor for Start Your Own Gold Mine program and I am currently located in Mirerani, Tanzania.
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