Gold Trading - Easy, it´s not that easy.

I´ve had the chance to be in the gold business industry for the last 15 years of my life. And don´t get me wrong, I haven´t been in Compliance all my life, even though it´s what I love the most. I started doing trading, because, as many people around, I thought it was like trading other commodities and oh I was wrong.

There´s nothing similar between Gold and precious metals and any other commodity.

First, the scams. Everybody says that they have gold and silver when in reality, they don´t. If you ever want to start trading, make sure you have to invest in travelling to the mine site, getting contracts signed with the mines, and have a direct relationship with your buyer. If you think you will make a quick buck using your computer, that a rookie mistake that many people fall for.

Famous scams we have seen through the years: Gold Bullion from HK. Gold Bullion from Singapore. Gold bullion from Korea, 200 MT of gold from HBSC in Korea. In general, all gold coming from Africa, unless it´s from a certified exporter, otherwise, you will lose your money big time.

Second, be careful with Africa. Africa is a continent that has potential, however, don´t think that it´s like doing business in America or in Latinamerica. Many of their procedures are still not regulated and there are plenty of disrespect for environment, Human rights, human trafficking among others. If you want to do business in Africa get yourself a good Compliance officer and agent and NEVER send money upfront for any type of expense.

Third, the most important one. Gold and Silver or any precious metals are NEVER traded with bank instruments. If you want to sell your metals, you will have to reach out a refinery, pass the due dilligence process, get an account, ship the metal (you can travel as well) and get paid after your metals have been tested. No one will open a bank instrument. Bank instruments cost money. If someone is asking you for an SBLC, it´s most likely that that person does not have the metal, they will monetize your SBLC and disappear and you will end up with the costs of the instrument and the debt.

Fourth, last but not least, get yourself a good compliance officer, like us at Rothschild Compliance. Get someone who understand the business, who can lead you to do business safely, with good partners and to keep you away from money laudering and jail.

Stay safe!!

Claudia Sofia Rothschild