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USD 107.71 / per gram
العربية
Guyana Gold MinesGuyana Gold Mines

Trust

The gold deal-flow chain

Every real gold deal runs through a sequence of instruments, from the first offer to settlement. We explain each one and how to avoid the scams attached to it.

1. Offer and order

SCO

Soft Corporate Offer

A non-binding opening offer stating product, quantity, purity, price basis and broad terms to start talks

FCO

Full Corporate Offer

The seller's detailed binding-style offer with full specification, procedure, payment terms and delivery

LOI

Letter of Intent

A non-binding statement of the buyer's intent to purchase on stated terms, opening formal negotiation

ICPO

Irrevocable Corporate Purchase Order

The buyer's firm purchase order stating quantity, terms and readiness to proceed to contract

CIS

Client Information Sheet

A know-your-customer sheet with the buyer's company details, passport and contact for verification

2. Broker protection

NCNDA

Non-Circumvention, Non-Disclosure Agreement

Stops parties from bypassing the introducing broker and from disclosing confidential deal information

IMFPA

Irrevocable Master Fee Protection Agreement

Fixes each intermediary's commission and the paymaster instruction so fees are paid on settlement

3. Contract

SPA

Sales and Purchase Agreement

The full binding contract setting specification, quantity, price formula, procedure, delivery and payment

2% PB

Performance Bond

A bond, often around 2%, by which the seller guarantees performance once the buyer's payment security is in place

4. Proof of funds and product

POF

Proof of Funds

Evidence the buyer holds funds to pay, shown by bank letter, statement or an authenticated bank message

BCL

Bank Comfort Letter

A letter from the buyer's bank indicating the buyer is financially able to complete the purchase

RWA

Ready, Willing and Able Letter

A bank statement that the client is ready, willing and able to proceed with the transaction

POP

Proof of Product

Evidence the seller holds the gold, such as an assay report, vault or export documentation

SKR

Safe Keeping Receipt

A receipt from a vault or depository stating that an asset is held in safe keeping for the owner

5. Payment security

DLC

Documentary Letter of Credit

A bank undertaking to pay the seller once shipping and assay documents meet the agreed terms

MT700

SWIFT MT700 (Issue of a Documentary Credit)

The message an issuing bank sends to open a documentary credit in the seller's favour

SBLC

Standby Letter of Credit

A bank guarantee that pays the seller if the buyer defaults, used as security in some structures

MT760

SWIFT MT760 (Guarantee / Standby Credit)

The message a bank uses to issue a guarantee or standby letter of credit to the beneficiary's bank

MT799

SWIFT MT799 (Free-Format Message)

A free-format bank-to-bank message often used as proof of funds or readiness before a credit is opened

6. Settlement

MT103

SWIFT MT103 (Single Customer Credit Transfer)

The wire message that moves final payment to the seller once assay and delivery are confirmed

ISO 20022

ISO 20022 / pacs.008

The richer messaging standard, with pacs.008 as the credit-transfer equivalent of the MT103

TT

Telegraphic Transfer (Wire)

A straightforward bank wire used to settle payment, common for trial orders and established relationships

Deal with a real exporter

Payment after assay, never advance payments.