GBC Group AG / Global Bullion Company / Gold Global International / Since 2008
Latest version GGI 11 HERE.
Unrefined Raw Gold and Semirefined Gold Purchase Procedure
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Dear Sir, Madam, as follows, find the purchase procedure details.
Phase I. : Gold Transportation & Gold Custom Clearing Procedure.
Phase II. : Gold Melting and Refining & Gold Assay Report.
Phase III. : Fine Gold 999.9 Payment.
ISO 9001
QUALITY MANAGEMENT
Seller's organisation, implementation and costs
1. Seller's Gold informational offer (gold type, gold purity, gold stock quantity, unrefined gold price).
2. Seller's Gold Assay Report published by seller's Gold Refinery Company (optional gold quality document).
3. Seller's Gold Proforma Invoice suitable for clearance (with the contents of unrefined gold quantity and
unrefined gold informational quality definition and dated unrefined informational gold price definition).
4. Gold Shipment Value judgement (seller's informational gold value judgement).
5. Gold Price Agreement according to LBMA fixing and according to the agreed seller's discount.
6. Gold Export documentation preparation and Gold shipment preparation carried out by the seller.
7. Gold transportation by air to the buyer's airport destination arranged by the seller.
Buyer's organisation, implementation and costs
1. Customs clearance procedure organization (airport clearing department takes 1 or 2 working days, gold
registered in seller’s name).
2. Meeting with buyer at the airport (test shipment gold is usually transported in a personal luggage suitcase).
3. Buyer’s accommodation at a nearby hotel if needed for the period of customs clearance (for 1 or 2 nights).
4. Gold transportation to the Melting Company location (seller may perform personal monitoring, gold registered
in seller’s name).
5. Gold melting and Gold refining process, finally publishing the Gold Assay Report (gold registered in seller’s
name).
6. Fine Gold deposit on the Refining Company Metal Account (gold registered in seller’s name).
7. Fine Gold 999.9 payment according to the agreement (bank transfer usually, cash also possible).
8. Agreement for the next gold delivery (quantity, timeline, etc.).
Available according to the agreement:
1. Refinery Company Sample Gold Assay Report.
2. Refinery Company Metal Account sample Gold Deposit document.
3. Gold Import Company name and address for Export documents preparation.
Procedure options and conditions:
1. Seller's Costs Minimisation option: refining process implementation monitoring is not required.
2. Seller's Time Reduction option: refining process implementation monitoring is not required.
3. Export documentation preparation costs and shipping implementing costs should be financed by the seller.
Payment conditions:
1. LBMA fine gold price list, http://www.lbma.org.uk/pages/index.cfm?page_id=17
2. Net gold output payment after assay report publishing, no advance payment.
3. Payment according to the previously agreed fine gold price in the contract.
Process Check Points:
1. Customs Clearing Export Declaration, Fine Gold Price Discount Agreement.
2. Air Way Flight Ticket for Personal transportation (gold transported in suitcase).
3. Air Way Bill for Cargo transportation (International Air Transport Form).
4. Leap airport location confirmation, courier call received from an airport fixed phone.
5. Airport Free Zone - Customs Clearing Import Declaration, Gold registered in the name of the seller.
6. Refinery Company gold acquisition form, Gold registered in the name of the seller.
7. Refinery Company Assay Report, Gold registered in the name of the seller.
8. Refinery Company Metal Account status display, Gold registered in the name of the seller.
9. Bank Certificate of the completion of the gold purchase money transfer.
10. Gold ownership transfer in the name of the buyer.
Electronic signature is valid and accepted as a hand written signature !
To achieve our first deal we must follow Buyers' Policy terms:
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1. Advance payment for the seller's costs of export taxes and for the seller's delivery expences is not acceptable.
2. Buyer Mandate Staff is not allowed to travel and therefore buyer representative may not arrive to the seller's location.
3. Incoterms Delivered At Place DAP Free Zone at Airport Europe for trial delivery is mandatory condition.
AIR Plane options: A – Business class, usually 25 Kgs allowed as personal luggage.
B – Economy class, usually 15 Kgs allowed as personal luggage.
Trial delivery procedure:
1. FCO for 15 Kgs or 25 Kgs or 50 Kgs or 100 Kgs or more or less.
2. Gold stock photos shooting with date and our name.
3. Preliminary Assay Report for the offered gold.
4. CGO Contract authorisation.
4. Proforma Invoice edition.
5. Sellers data registration.
6. Metal Account authorisation.
7. Visa procedure implementation.
8. Export procedure implementation.
9. Western Union deposit for AIR Ticket collateral.
10. Airbill arrangement, Airticket buying.
11. Shipment arrival to buyers' Airport.
12. Buyers' bank funds confirmation.
13. Smelting and refining.
14. Payment.
Electronic signature is valid and accepted as a hand written signature !
CONFIDENTIAL
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Gold Value Calculation Simulation
Simulation Data:
1. Unrefined Gold Quantity
2. Unrefined Gold Purity (Seller's information)
3. Theoretical Fine Gold Quantity
4. Fine Gold Quantity (Assay Report information)
5. Gold Purchase Price Agreement
10 Kg
95%
9.50 Kg
9.35 Kg
LBMA Minus 20%
LBMA Fixing:
1. Time period
2. Quantity, Weight
3. Fine Gold 999.9 Ounce Value
May 2013
1 Ounce = 31.1034768 Gram
$1,300 USD (assumption)
Fine Gold Weight calculation:
Fine Gold Weight
1 Kg =
32.1507466 Ounce
9.35 Kg = 300.60948 Ounce
Fine Gold LBMA Value calculation:
Fine Gold LBMA Value
1 Kg =
$41,795.19 USD
9.35 Kg = $390,785.03 USD
Fine Gold Payment (bank transfer or cash):
80% of 1 Kg
= $33,436.15 USD
80% of 9.35 Kg = $312,628.02 USD
Summary:
Fine Gold 999.9 Ounce Value Assumption
10 kg Unrefined Raw Gold Purity 95%
= Fine Gold Price
$1,300.00 USD
= Fine Gold Payment $312,628.02 USD
Process Timeline:
Switzerland
Austria
1. Gold Import procedure and customs clearance procedure:
2. Gold Smelting, Refining, Assay Report, Fine Gold 999.9 Payment:
1 working day.
1 working day.
max. 2 working days.
max. 3 working days.
Date:
Commerce & Trade Partner:
Sincerely.
Gold Global Europe
Assisted by Ines
Business Manager
Dejan Seslar, dipl. Ing., dipl. oec.
Represented by Deso
Trade Association Seal:
Signatue:
Gold Global International Affiliates:
GG Europe
GG Australia
GG America
GG Africa
GG Asia
England, London; Switzerland, Zurich; Austria, Vienna; France, Paris; Germany, Frankfurt; Slovenia, Ljubljana.
Victoria, Melbourne; Western Australia, Perth.
USA, New York; Canada, Vancouver.
SAR, Johannesburg.
China, Peking.
Electronic signature is valid and accepted as a hand written signature !