Swiss procedures of gold transaction
Swiss procedures, which means that FIRST there is proof that the gold literally exists and that it is in fact for sale by the Owner holding title (no third party contracts or banks). A warehouse receipt, a bank deposit, and refinery documents on one Au bar is sufficient to begin. In addition, we expect that there will be Good London Delivery ("GLD") legal status on the metal, which by international standards means that there are no liens and encumbrances on the gold, that it is in 12.5 KG standard (modern) "bankable" bullion bars, hallmarked by an approved LME assayer and that the metal is unconditionally guaranteed by the Sellers bullion bank.The gold must be able to be transferred to a European Union Au bullion bank (if it does not already reside there).
Important Note: NO up-front payments or Bank Guarantee or Letter of Credit or POF.
The procedure that the Buyer prefers and which will assure the fastest and smoothest transaction is described below:
"PROCEDURES"
1 The Seller issues: Soft offer with complete procedures.
2 Upon review and acceptance of the Soft offer, Buyer request Seller to issue FCO signed on the Sellers or Mandates legal letterhead along with Mandate papers (if a Mandate is used)
3 Upon accept and verification of the Sellers information, the Buyer/Buyer's Mandate signs FCO and submits a letter of intent signed on the Buyers or Mandates legal letterhead along with Mandate papers (if a Mandate is used) and a contract.
4. The Seller/Seller's Mandate responds with the signed and sealed contract with full banking coordinates, and an invitation for the Buyer's bullion officer to contact the Seller's bullion officer.
5. The Buyer/Buyer's Mandate signs the contract, and accepts the invitation of the Seller's bullion officer. The Buyer/Buyer's Mandate sends a hard copy of the contract/agreement signed by both Buyer and Seller with full banking coordinates.
6. The Buyer's bullion officer initiates the contact with the Seller's bullion officer by KTT.
7. The Seller's bullion officer will be instructed by the Seller to verify the Au metal, the quantity available, and to disclose any/all liens and encumbrances attached to the metal.
8. Upon receipt of the proof of existence of the Au metal and the certificate of authority to sell, the Buyer will instruct his bullion officer to confirm the availability of funds to be used as payment when the gold is delivered.
9. The Buyer and the Seller agree on a window time for exchange. The payment to the Seller will be disbursed within 24 hours against the transfer of ownership of the metal.
10 Commissions/fees will be paid upon closing of each tranche to the parties stipulated in the contract, in the amounts shown.
11 All subsequent tranches will close tabletop as described above.
