GOLD BULLION
HONG KONG BULLION PORTFOLIO (VALID UNTIL 30 JUNE 2024)
GOLD BULLION OFFER 1: LBMA Certified Gold in Hong Kong
- FOB HK with Export Permit as part of POP
- Minimum contract quantity 20MT, 1st tranche 1MT
- 1kg 999.9/1000 bars in custody of Top Bank in HK
- Minimum POF to engage is USD 1 Billion
- Bank to Bank transaction preferred
- Inspection/Assay at Buyer’s refinery before Payment
- 7% Net to qualified Buyer
- Not for potential Buyer with limited-capital buying-selling 1MT at a time.
BEST PRICE BEST ADVICE
GOLD BULLION OFFER 2: EXECUTIVE SUMMARY - SELLER ATTESTATION
We are experienced Consultants engaged exclusively in the “off-market” trade of large-volume bullion inventories. We hold legal title to one of the largest stockpiles of investment-grade bullion on the market.
We hereby declare, with full authority and legal responsibility, that we are ready, willing and able to sell and deliver the below high-purity gold bullion in accordance with the terms and conditions set forth herein.
Trade references on the Seller are available upon request.
GOLD SPECIFICATIONS
COMMODITY: GLD complaint bullion (refined to GLD specifications)
QUANTITY: "Large-tonnage" inventory, regularly replenished
FORMAT: 12.5 KG Bars
PURITY: 999.5/1000 or better fineness
ASSAY REPORTS: Less than five (5) years old
HALLMARK: Metalor refinery (Hong Kong)
SERIAL NUMBERS: LBMA-registered serial numbers
LOCATION: Private security warehouse in Hong Kong
INSURANCE: Insured by Lloyd's of London for full LBMA market value
TRADE STATUS: Freely liftable and tradable and fully exportable
All governmental/agency clearances and approvals
Export permits already issued in name of Consultant
TERMS OF PURCHASE
MODALITY: Bank-managed transactions. Major World Banks only.
SELLER'S BANK: HSBC, Hong Kong, Main Office
CONTRACT SIZE: Minimum 200 MT. Large-tonnage, multi-Lift contracts available.
DISCOUNT: Gross 8% and Net 6% to Buyer (LBMA, 2nd fix)
FIRST LIFT: 200 MT of product (fixed amount)
SUBSEQUENT LIFTS: Flexible Lift size/Lift frequency. Minimum 200 MT Lift amount.
FINAL ASSAY: Performed by Metalor refinery Assayers, Hong Kong (preferred).
DELIVERY: Metalor refinery or HSBC, Hong Kong vault storage or Consultants private security warehouse – at Buyer’s option.
SETTLEMENT: "Ledger-to-Ledger" transfer of cash funds. United States Dollars. Other major world currencies considered.
CONSULTING FEES: 2% Consultancy Fees payable by Seller as follows:
1% to Seller's side (closed), disbursed by Seller
1% to Buyer's side, disbursed by Seller or Buyer
Principal Features for 2024:
(i) Bank Notification Letter. After contract-signing, the Seller will provide the Buyer, in advance, with a copy of the Bank Notification Letter issued by HSBC, Hong Kong and addressed to the Seller, confirming that the Bank has received the signed contract (Transaction Code XXX) from the Seller and is ready to proceed with the transaction on the Seller's behalf, and naming the Buyer therein. The Buyer can then proceed to lodge the signed contract with its Bank, content in the knowledge that the Seller has lodged the contract with its Bank already and the Seller's Bank has accepted the transaction.
(ii) Table-Top Meetings (HSBC, Hong Kong). We can, at the request of the Buyer, provide "back-to-back" Table Top Meetings in HSBC, Hong Kong to conclude the transaction. Procedurally, once the POP/POF verification has successfully concluded and the Buyer has moved his funds into the Settlement Bank (HSBC, Hong Kong or HSBC, London) if need be, the Seller's Bank Officer will issue a series of Bank Invitation Letters inviting the Parties to attend successive sit-down meetings inside the Bank.
(iii) Export-Ready Bullion (Full Banking Responsibility). The Seller's Bank Officer will confirm, with full banking responsibility, that the bullion is freely exportable.
(iv) Bank Vault Storage (HSBC, Hong Kong). We can arrange, at the Seller's expense, for HSBC, Hong Kong to collect the newly certified Lift amount directly from Metalor refinery and transfer the bullion into the Bank's vault or outside bullion depository. HSBC, Hong Kong charges 3% of the Lift's purchase value to vault 200 MT of Au metal for one (1) year. This represents a cost savings to the Buyer of approximately $420 Million USD!
(v) "In-Bank" Escrow (HSBC, Hong Kong). The Buyer, at its sole option, may appoint the Seller's Bank Officer as its Bank Officer to conclude the transaction inside the Bank on the Buyer's behalf. The Seller's Bank Officer will then manage the transaction on behalf of the Buyer and Seller, together, under a fiduciary duty of care owed to the Parties, jointly, as the Parties' duly appointed Escrow Officer.
(vi) Buyer Observers. Buyers can, at their option, designate a maximum of two (2) "representatives" to observe Metalor refinery conduct the final assay prior to purchase.
(vii) "Per Warehouse" Lift Operations. Buyers who are contemplating a large bullion purchase may, subject to agreement, purchase the Seller's inventory on a consecutive "per warehouse" basis, coupled with an assignment to the Buyer of the existing warehouse leases.
(viii) "Executive-Level" Bank Officers. The Seller now utilizes a slate of four (4) "executive-level" Bank Officers in HSBC, Hong Kong to manage the transaction on its behalf.
(ix) Assay Charges (Paid by Seller). The Seller will continue to cover all transport and refinery charges associated with Metalor refinery, Hong Kong conducting the final assay of the initial 200 MT Lift amount.
(x) Bank Closing Costs (Paid by Seller). All bank charges related in the final closing will be borne solely by the Seller.
HERE IS HOW WE PROGRESS THE TRANSACTION
If the Buyer is interested in pursuing our offer further, I would be pleased to speak with the Buyer or his Representative/Mandate or Legal Counsel.
Everyone is welcome on the call.
Upon the conclusion of the conference call, I will provide the parties with a signed/sealed Letter of Offer.
I can also provide a complete set of transaction documents, to include the draft contract and an Exhibits Form Book containing the verbiage of all required Exhibits.
We can proceed in one of two ways:
1) You can provide me with the coordinates for the Buyer (or the Buyer's Mandate/Representative or Legal Counsel), and I will contact the party directly; or
2) We can conduct a group conference call together.
An NCND is available upon request.
Here are the pre-contract "stages" culminating in the final contract-signing:
1) Parties engage in on-going contract discussions
2) Parties reach agreement in principal re specific terms of purchase
3) Seller provides "targeted" final (draft) SPA and a Confidential Information Sheet
4) Buyer conducts due diligence examination
5) Contract preparation, including required Exhibits
6) Buyer and Seller sign final SPA
Please keep in mind the following baseline considerations - these are non-negotiable terms:
1) The minimum permissible Lift (or tranche) amount is 200 MT of product. That is a roughly $13 Billion USD purchase commitment payable, in full, on Lift completion, typically within 2-3 weeks time, depending on the assay/delivery option selected by the Buyer. Unfortunately, we cannot supply smaller Lift amounts. Cash funds only. No Bank Trade Guarantees (LC's, SBLC's, DLC's, etc). The discount is 8% gross / 6% net to the Buyer.
2) This being investment-grade, GLD-compliant bullion (as opposed to raw gold or low-purity dore or non-GLD bars) we do not provide CIF/CIP terms of delivery. High-purity bullion is always sold on an FOB (Ex-Works) basis. Our product is stored in Hong Kong; hence, we offer FOB (Ex Works) Hong Kong delivery. The bullion, though, is fully liftable and tradable and freely exportable.
3) Given the nature and sensitivity of these large-scale bullion transactions, we do not provide Proof of Product upon demand. Equally, we do not require advance Proof of Funds from interested Buyers. Proof of Product & Proof of Funds are confirmable internally, on a "bank officer-to-bank officer" basis via secure banking means and channels once the Parties have cleared Bank compliance. This is to ensure that the Buyer and Seller's confidential data does not fall into the wrong hands and that the Parties are otherwise RWA to proceed.
4) We require that Buyers follow our procedures. Not because our procedures are necessarily superior; they may not be. But because - this being a multi-government offering - there are controlling international agreements in place that dictate the conduct of sale and preclude us from transacting with Buyers who are unable or unwilling to comply with our procedures as presented.
PRINCIPAL FEATURES
METALOR REFINERY ASSAYERS
We hold an active metal account with LMBA-accredited Metalor refinery, Hong Kong. The refinery is part of the premier, Swiss-based Metalor Technologies Group and enjoy an excellent global reputation.
In these uncertain “COVID-19” times, we recommend using Metalor Assayers to perform the final assay and GLD certification. This ensures that the assay and delivery process proceeds smoothly and seamlessly with minimal outside interference.
More importantly, this allows Buyers to take delivery of pure GLD – that is, newly certified bullion in the GLD system. GLD is much sought-after on world markets and trades at prevailing (non-discounted) LMBA gold prices; that’s because Buyers will accept GLD on its face without a new assay when delivered in settlement of a sale.
ASSAY & DELIVERY OPTIONS
- Metalor Refinery Assay: We are willing to move the Lift amount to Metalor refinery at our expense for a new certification. Buyers may take delivery directly from Metalor storage as pure GLD or we will return the Bullion to our private security warehouse.
- Security Warehouse Assay/Delivery: We are willing to engage Metalor refinery’s Assayer Team at our expense to assay the Lift amount at our security warehouse or the Buyer may utilize their own certified Assayers to perform the final assay in place.
- Bank Vault Storage: We are willing to instruct HSBC, Hong Kong at our expense to collect the newly certified bars from Metalor refinery and move the bullion into the Bank’s vault or depository. Buyers may take delivery directly from HSBC, Hong Kong.
SHIPPING AND EXPORT
The bullion is freely exportable and sold with full Government Export Approval and Tax-Paid Clearance. The export permits have already been issued and will be listed in the contract and confirmed to the Buyer on a “bank officer-to-bank officer” basis.
Hong Kong is the second largest gold exporter – and the third largest Free Trade Zone – in the world. There are no restrictions or customs duty on bullion exports. We work closely with Bank’s, Hong Kong and can facilitate introductions upon request.
We are also willing to provide Buyers, after title transfer, with two-weeks free warehouse storage and insurance cover. Alternatively, we will deliver the Lift amount after closing to the Hong Kong International Airport, Free Trade Zone.
SETTLEMENT PROCEDURES
Settling payment is managed on a “ledger-to-ledger” basis within the same Bank. This ensures the prompt and orderly transfer of payment-versus-delivery on closing, helps preserve confidentiality and eliminates the risk of international trade disputes.
Buyers may nominate HSBC, Hong Kong as the Settlement Bank. Our Bank Officer, upon request, can promptly arrange a dedicated bank account for the Buyer Alternatively, Buyers are welcome to utilize HSBC, London, Headquarters Branch – a respected Bullion Bank in it own right – to settle the cost of the Lift amount.
BANK-MANAGED TRANSACTIONS
Transactions are managed exclusively within the safe and secure confines of the banking system under full banking scrutiny and vigilance, utilizing standard SWIFT protocols and in full compliance with applicable laws and international regulations.
Bullion sales are also subject to close governmental and regulatory oversight. We work closely with the Hong Kong Monetary Authority. The US FED and the Bank for International Settlements are notified of impending transactions.
ORIGIN & PROVENANCE
The bullion assets are beneficially owned by a major alliance of Asia-Pacific countries and are managed under a longstanding International agreement. The treaty terms provide for the sale of bullion privately on an “off-the-market” basis only.
The inventory is being sold to advance the general welfare and betterment of the member-states. The proceeds of sale are used to finance the construction of large-scale, government infrastructure projects and other (non-profit) public Interest works.
This is not Thailand, Philippines or Indonesian gold. China (PRC) is not part of the “consortium” of nations. The complete records are maintained at HSBC, Hong Kong.
PROOF OF PRODUCT/PROOF OF FUNDS
Given the nature and sensitivity of these large-scale bullion transactions, we do not, as a matter of prudent policy, provide Proof of Product on demand. Equally, for the same reason, we do not require advance Proof of Funds from Interested Buyers.
Such matters, out of an abundance of caution, are best managed on a “bank-to-bank” basis via secure banking means and channels. This ensures that the Buyer and Seller’s private and confidential financial data does not fall into the wrong hands.
ADHERENCE TO SELLER’S PROCEDURES
We require that Buyers observe our procedures as presented. The Consultant’s procedures. Not the Buyer’s procedures. Otherwise, unfortunately, we are unable to supply bullion to the Buyer, notwithstanding the Buyer’s interest or financial capability.
This “strict adherence” requirement is not because our procedures are superior, they may not be. It is because this is a multi-government offering; these are controlling treaty provisions that dictate the terms of purchase that Buyers must follow.
NON-PERFORMANCE PENALTY CLAUSE
We would be pleased to include a Two Percent (2%) Penalty Provision for non-performance based on the purchase value of the Lift amount. Depending on Lift size, this quates to a minimum $240 Million USD damages award payable to the aggrieved Party as agreed compensation in the event of a breach of contact.
Penalty for Non-Performance: Should either Party fail to perform the transaction in accordance with the terms of Agreement, the defaulting Party shall pay the Innocent Party an amount equivalent to Two Percent (2%) of the purchase value of the Lift amount as compensation for the damages which the Innocent Party has suffered. Nothing in this section shall affect the non-offending Party’s right to pursue its legal remedies in a court of law or other competent tribunal.
TRANSACTION PROCEDURES
CLOSING PROCESS
BEST PRICE BEST ADVICE
GOLD BULLION OFFER 3: Gold Bullion Procurement from Mauritius
- FOB Mauritius with Export Permit part of POP.
- Minimum contract quantity 260kg’s, 1st tranche 20 kg’s.
- 1kg bullion bars at 999/1000 purity in custody of Security Warehouse in Mauritius.
- Minimum POF to engage is USD 13 Million.
- Bank to Bank transaction will be preferred.
- Inspection / Assay at Government Assay Office before Payment.
- Discount of 10% net to qualified Buyer - at second fixing of LBMA price on date of transaction.
- Commission to be discussed with buyer.
- Not for potential Buyer with limited-capital buying-selling 1kg at a time.
- Brinks or other accredited party arranged for delivery.
- Procedures compliant with OECD guidelines and International Standards.
