Where do gold mining company in Africa sell their gold? Can I buy directly from them?
Quote from chief_editor on September 14, 2023, 7:25 amIt's important to understand that obtaining gold at prices significantly below the global market rate is a rare occurrence, and caution is paramount in any such pursuit. Miners operating in regions like Dubai, Germany, and Switzerland typically receive prices that closely align with the prevailing world gold price. Moreover, much of their gold production is often pre-sold on futures markets to fulfill contracts. These gold bars are typically rough and unrefined, with purity levels ranging between 90% and 98%, and they often weigh as much as 400 ounces. In contrast, investment-grade gold is refined to purity levels between 99.5% and 99.99%.
A few small-scale African miners may be open to selling gold directly. In such cases, after having the gold assayed for purity, a purchase price of around 98% of the world gold price may be negotiated. This gold can then be resold for a slightly higher price, typically around 99.3%. This margin results in a profit of approximately 1.32% per transaction.
It's essential to recognize that genuine opportunities to acquire gold well below market prices are exceedingly rare. Any claim of exceptionally cheap gold should be approached with skepticism, as scams and fraudulent schemes abound in the market.
The only exception to this rule involves embarking on a perilous journey deep into remote jungle areas, armed with cash to purchase gold from small miners at a modest discount, often around 5% to 10% below the world market price. However, this endeavor is fraught with danger and logistical challenges. It necessitates hiring armed guards and undertaking a multi-day trek back to civilization while facing the constant threat of robbery or betrayal. Such an endeavor is not to be taken lightly, as the risks far outweigh the potential savings.
In practice, few would consider embarking on such a perilous journey without extensive experience and knowledge of the local dynamics, including the ever-changing laws, tax structures, and political environments in African countries. Some experienced Lebanese gold buyers have successfully navigated these challenges, but they have honed their expertise through years of engagement with African markets.
In conclusion, the gold market is highly competitive and nuanced, and substantial discounts on gold prices are rare. Any claim of cheap gold should be viewed with caution, and ventures into remote areas to purchase gold at a discount should only be considered by those with extensive experience and the means to mitigate significant risks.
It's important to understand that obtaining gold at prices significantly below the global market rate is a rare occurrence, and caution is paramount in any such pursuit. Miners operating in regions like Dubai, Germany, and Switzerland typically receive prices that closely align with the prevailing world gold price. Moreover, much of their gold production is often pre-sold on futures markets to fulfill contracts. These gold bars are typically rough and unrefined, with purity levels ranging between 90% and 98%, and they often weigh as much as 400 ounces. In contrast, investment-grade gold is refined to purity levels between 99.5% and 99.99%.
A few small-scale African miners may be open to selling gold directly. In such cases, after having the gold assayed for purity, a purchase price of around 98% of the world gold price may be negotiated. This gold can then be resold for a slightly higher price, typically around 99.3%. This margin results in a profit of approximately 1.32% per transaction.
It's essential to recognize that genuine opportunities to acquire gold well below market prices are exceedingly rare. Any claim of exceptionally cheap gold should be approached with skepticism, as scams and fraudulent schemes abound in the market.
The only exception to this rule involves embarking on a perilous journey deep into remote jungle areas, armed with cash to purchase gold from small miners at a modest discount, often around 5% to 10% below the world market price. However, this endeavor is fraught with danger and logistical challenges. It necessitates hiring armed guards and undertaking a multi-day trek back to civilization while facing the constant threat of robbery or betrayal. Such an endeavor is not to be taken lightly, as the risks far outweigh the potential savings.
In practice, few would consider embarking on such a perilous journey without extensive experience and knowledge of the local dynamics, including the ever-changing laws, tax structures, and political environments in African countries. Some experienced Lebanese gold buyers have successfully navigated these challenges, but they have honed their expertise through years of engagement with African markets.
In conclusion, the gold market is highly competitive and nuanced, and substantial discounts on gold prices are rare. Any claim of cheap gold should be viewed with caution, and ventures into remote areas to purchase gold at a discount should only be considered by those with extensive experience and the means to mitigate significant risks.