Magister Operis · Commodity Wanted

Gold — Bullion

A standing buy-side requirement for gold bullion. For a credible seller, this is the short road to a real buyer.

What opens the door

Attestation A law firm attests to the authenticity and ownership of the metal, its provenance, and the history of the funds that acquired it. Attorney Attestation →
Transferability The seller’s bank can confirm the existence and transferability of the metal.
Standing A real seller with a track record, and banking and attorney references.
Privacy A seller who prefers to stay off the record is accommodated: counsel holds the identity and stands behind it.

These are the standards a bank, a major accounting firm and a serious law firm apply to the same transaction. They are not distrust. Met early, they are the fastest way to close.

Procedure · or as agreed

  1. Magister Operis assembles the seller’s pre-compliance file around the attorney attestation.
  2. The buyer’s chairman authorizes Magister Operis to disclose the buyer’s identity by introductory email, so the seller and counsel can review the buyer’s operations, brochures and website.
  3. Magister Operis arranges a recorded video call with buyer, seller and/or counsel, so all parties meet face to face.
  4. Parties meet in person for due diligence and testing of the metal as needed.
  5. Counsel for both sides draft the SPA, and the SPA is signed.
  6. The buyer arranges an acceptable institutional payment guarantee as required.
  7. Buyer and seller lodge the contracts with their respective banks.
  8. The seller’s bank confirms by SWIFT the existence and transferability of the metal; the buyer’s bank responds by SWIFT with confirmation of payment.
  9. Metal and funds are exchanged electronically, bank to bank.

Bank instruments and compliance

Instruments The buyers’ banks issue only an irrevocable, non-transferable revolving documentary letter of credit (IRDLC) or a standby letter of credit (SBLC).
Compliance Most international buyers and sellers must meet the standards of the Wolfsberg Group. Be ready, willing and able to show compliance documentation: the earlier, the better.
An old saying · from the broker world
He Who Owns the Gold Makes the Rules

Then why does the owner need us?

I
The sayingA seller once reminded Magister Operis of it: “He who owns the gold makes the rules.” It is heard often in the broker world.
II
The questionA billion-dollar signatory asked: “So why does she need us to buy her gold? Why doesn’t she just contact the gold department of a top bank and make a deal with them?”
III
The answerA seasoned banker already knew her issue. She doesn’t have those relationships. It’s that simple.
IV
Every metalGold, silver, platinum or palladium: owning the metal does not open a buyer’s door. A credible, documented file does.

Is the saying actually true? Read the full answer →

Model this deal → value a bullion offer against today’s gold price in the Gold Deal Snapshot.

SPECIAL NOTE: Magister Operis does not take an offer to any buyer until the seller has established its credibility to Magister Operis, in this transaction and in every other. An attorney attestation is the fastest way to establish it.

Every engagement is governed by the firm’s Method and Disclaimer; intermediaries should also review Broker 101 and the firm’s Due Diligence standards.