How to Verify a Gold Buyer Before Agreeing to a Sale

A genuine-looking company website or a confident purchase offer is not enough to establish that a buyer can complete a gold transaction. Sellers should verify who is making the offer, who can sign for the purchasing entity, what the buyer expects to inspect and how payment will be secured.

Confirm the buyer's legal identity

Request the proposed buyer's full registered name, jurisdiction, company registration details and authorised signatory. If the buyer is represented by an agent, establish the agent's mandate and whether the principal will be named in the contract. Independently check the company's registration where a reliable official registry is available. A contact's business card does not prove authority to commit a company.

Test whether the proposal is commercially complete

A credible buying proposal should specify acceptable material form, approximate quantity, purity or refining specification, delivery destination, inspection procedure, price reference and settlement mechanism. Ask whether the buyer seeks direct ownership, intends to buy through another entity or requires a refinery to accept the material first.

Unclear or shifting answers are a reason to ask for clarification before making commitments. A complex chain of intermediaries also makes it more important to identify the actual contracting buyer.

Keep independent verification separate from payment

Parties should agree a suitable sampling and gold testing process and identify who will receive the report. A preliminary XRF reading and a representative assay answer different analytical questions. A buyer's inspection team should not have uncontrolled access to the material or the only retained sample.

Understand the proposed payment protection

For bank transfer, documentary credit, collateral or escrow, ask exactly what instrument exists, who issued it, when it becomes enforceable and what conditions trigger payment. Verify the institution or escrow agent using independently sourced contact details. Do not take screenshots of balances, draft agreements or payment messages as conclusive proof of available funds.

Ask what happens if the parties disagree about weight, sampling, assay, delivery or documentation. If the payment arrangement cannot be explained in clear written terms, do not rely on it.

Protect confidential information

Share sensitive company or ownership records through a controlled due-diligence channel, proportionate to the stage of negotiation. Avoid publishing customer identities or consignments. Keep a record of every document version and clarification received.

What Bilex can do

Bilex can review a proposed gold opportunity for buyer introduction, provide independent purity testing and discuss trade coordination within a written mandate. An introduction is not a guarantee of a buyer's solvency or willingness to complete the transaction. If Bilex itself becomes the buyer in a particular agreement, that must be stated expressly.

Next step: Before releasing material or money, obtain the buyer's legal details, inspection terms, payment structure and the name of the party that will sign and pay.