Frequently Asked Questions on Gold Trade and Gold Mining Business

Frequently Asked Questions on Gold Trade and Gold Mining Business as answered by Mr. Jean Louis, the Business Startup Provider and manager, living in Geita, Tanzania and mentor for the program Start Your Own Gold Mine.

Frequently Asked Questions on Gold Trade and Gold Mining Business

• Due Diligence, Red Flags, and Indicators of Gold Fraud in East Africa: Focus on Uganda, Kenya, Tanzania, and the Democratic Republic of Congo (DRC)
  This article outlines numerous red flags indicating potential gold fraud in East Africa, particularly in Uganda, Kenya, Tanzania, and the DRC. Key scam indicators include offers of "gold in transit," misapplied CIF terms, requests for advance fees, unverified sellers lacking physical offices, and deals involving suspiciously low prices or large quantities. Other warning signs include sellers using fake documentation, name-dropping high-profile figures, or insisting on unusual procedures. The article emphasizes the importance of due diligence, legal consultation, and embassy verification to avoid falling victim to scams, urging buyers to prioritize transparency, proper licensing, and verified transactions when dealing in gold.
• Debunking Fraudulent Gold Trade Documents: A Guide for Savvy Businessmen on SPA, FCO, and SCO Misuse.
  In international gold trade, fraudsters often misuse acronyms like SPA (Sales & Purchase Agreement), FCO (Full Corporate Offer), and SCO (Soft Corporate Offer) to mimic legitimate business practices, but these documents are not recognized under mainstream international trade law, including the CISG or ICC Incoterms, nor do they appear in standard academic or regulatory frameworks. Genuine transactions rely on verified instruments such as sales contracts, commercial invoices, bills of lading, export permits, and bank-confirmed payment methods—not self-styled offers lacking verifiable corporate details or regulatory credentials. Red flags include missing company registration, requests for upfront fees, and fictional payment mechanisms. Serious professionals must demand traceable, bankable, and legally compliant documentation and reject any deal based on these fabricated acronyms or unverifiable documents.
• Due Diligence, Red Flags, and Indicators of Gold Fraud in East Africa: Focus on Uganda, Kenya, Tanzania, and the Democratic Republic of Congo (DRC)
  This article outlines numerous red flags indicating potential gold fraud in East Africa, particularly in Uganda, Kenya, Tanzania, and the DRC. Key scam indicators include offers of "gold in transit," misapplied CIF terms, requests for advance fees, unverified sellers lacking physical offices, and deals involving suspiciously low prices or large quantities. Other warning signs include sellers using fake documentation, name-dropping high-profile figures, or insisting on unusual procedures. The article emphasizes the importance of due diligence, legal consultation, and embassy verification to avoid falling victim to scams, urging buyers to prioritize transparency, proper licensing, and verified transactions when dealing in gold.
• Where can I buy good and cheap gold?
  Where can I buy good and cheapgold? In your question you are referring to gold. There is no specification to what type of gold you are referring, and also not of what is considered “cheap”. In gold trade business there are many ways how you can buy good and cheap gold, and I have to be more specific in regards to type of gold and methods of buying gold.
• Where do I buy gold in the USA?
  Question is giving few examples on where to buy gold in the United States.
• What is the quickest way to sell raw gold from Africa?
  There are two markets for gold from Africa: Virtual and online market of wannabe buyers and fake sellers, and naive intermediaries, believing into the emails and plethora of online gold offers that claim to have cheap gold from Africa. This group of people believes to each other, but never connect to the actual gold trade in Africa and they live out of the reality of the real gold trade.
• How can one tell between fake and real gold with their naked eye?
  I cannot say for those professionally made fake gold bars that are of the same size just as the real gold. I am mostly faced with the fake gold bars offered from African countries such as Tanzania, Uganda, Kenya, Ghana, Mali, where criminals paint the yellow color over the lead bars, or otherwise melt any type of brass, and claim it to be the gold.
• Can you send me a real set of procedures that gold buyers and sellers use for gold transactions?
  The procedure in the world of real gold trade is as following: meeting both parties, making sure that all legal details are satisfied, such as exchange, of due diligence, making sure that gold is real, by melting it, assaying and taking in possession and if not immediately in possession, then to hallmark the gold in such manner that it cannot be exchanged. And taking other precautions. Paying for gold and taking immediately possession of it. Arranging all other matters such as export or transport yourself with safety, insurance and secrecy. Only fake procedures require FCO, SCO, SPA, and other nonsense documents.
• Fake Documents Exposed: Certificate of Ownership for Gold from Ghana
  Here we are exposing few of the fake documents representing "Certificate of Ownership" which is usually forged to deceive foreign naive and stupid wannabe "buyers" of gold. And many people actually start believing into it. We are analyzing it here to see by logic and reason how such document cannot be a true document.
• How can I invest $320.000? I need minimum guaranteed income of $25.000 per year (with each year % increase / inflation protected)
  There are many ways to invest US $320,000 and get minimum and guaranteed income of US $25,000. Question is justified. You can get US $25,000 minimum on investments. You need to find your source, financial institution, company or a bank that will help you with such. When one is surrounded with people who don’t know more about business and investing than what is available in their own city or country, it may be that global opportunities and business investment opportunities are seemingly limited.
• Where can I learn about gold buying and selling?
  Even those people who only wish to engage in trading of gold in Tanzania, without being engaged in Start Your Own Gold Mine program, we are providing the service of Establishment of Gold Trading in Tanzania meaning a full service with following benefits and advantages...
• How much gold does Trump own?
  Why not ask Trump directly? How you think that any Quora user may know how much gold somebody owns?
• What equipment is needed to extract gold on a small scale for a mine?
  I am interested in the equipment, the processes and the cost needed to build a low tech / semi-industrial mining operation to extract gold in West Africa.
• We have Gold Nuggets for sale and looking for buyers, are there any buyers?
  I am sure you are not the one who mines the gold nuggets, as otherwise you would know it. Judging by your profile picture you are not an African. Fake offers of gold nuggets are to be found often on Internet. Gold nuggets in the nature look as on this link, so visit the link and study how real and natural gold nuggets look like.
• How do you make your own gold mine?
  Small scale mining is easy when one knows how. This introduction may help the reader to start in small scale mining activity. The general information shall give a guidance on how to properly look into the future of own sustainable gold mining. Knowledge is power. Just like in many other areas of business, knowledge is power. First thing to do in order to start a new gold mining activity is to obtain as much knowledge as possible for your future mining development. You certainly don't need to be an educated miner, but you do need to have access to knowledge and to experts that may help you during your beginning stage.
• How can you tell that a 1 kg bar of gold has not been poured out and filled with a worthless metal?
  That is basic physics that you have already been learning in the school. To determine if gold that you have in front of you, is really gold, provided you have the access to that gold, and you have opportunity to do the experiment, then I am suggesting you the following...
• Which gold is harder 21k or 22k?
  When gold is more pure, it is closer to its original hardness of 2.5. If it is mixed with copper, that has 3.0 hardness, it is harder. Gold of 21 karat is 87% of gold. The calculation is simple 21 divided by 24 = 0.87. Gold of 22 karat it 91% of gold, as 22/24 = 0.91. Because there is less gold in 21 karat gold, such alloy would be assumed to be harder. But it is not necessarily so. We cannot at all conclude which one is harder, as we do not know what is the other metal in that alloy with gold.
• Why does customs check against the entry of undeclared gold?
  Since gold is directly money, bringing gold in the country should be encouraged by the government even at the cost of Indian rupees going offshore, because irrespective of currency fluctuations the value of gold is constant in the international market
• What would be the volume of gold if collected from the entire planet in any of its forms?
  Maybe you direct that question to the tribe of Elohim as they may have better assessment technology to know how much gold could be in the entire Earth.
• What happens to gold after it is mined?
  How is it processed, how is it sold, and what determines where it is stored?
• Where can I sell my gold nuggets?
  I want to sell my gold nuggets and I’m in Ukraine. As I’m new in this industry I don’t know where I can sell them easily. What are the ways to sell gold and diamonds? Specially gold nuggets?
• Do gold’s ounce and gram prices go up according to each other? Or they're independent?
  I want to know if gold’s oz and gram prices go up at the same time. Or gram price may stay stable while oz price goes up.
• Where can gold bars and nuggets be sold?
  You have not mentioned in which country are you. Gold bars are easily sold to dealers and banks in Europe. In Africa, gold bars can be easily sold to dealers and jewelers. There are gold refineries everywhere in Europe, and they would accept gold bars and nuggets and pay for it after melting.
• Why is gold so cheap in gulf?
  Gold was never cheap in gulf. Your information is probably not based on real gold trade. If you happen to read Internet offers, they are almost all fake.
• If a gold coin was worth a billion dollars, how big would the coin be in diameter?
  According to the price of gold being today US $1197 for a troy ounce, a billion dollars would contain 835421 troy ounces (rounded). That is 25984525 grams or 25984 kilograms or 25.98 tonnes of gold. Considering that 19.3 tonnes of gold may fit into one cubic meter, the volume that 25.98 tonnes would occupy would be 1.34 cubic meters.
• How can you determine plate thickness on gold plated jewellery?
  and how many plate levels (eg. Triple plated) denounces a good or better quality of gold plated jewellery or ornament?
• Is it possible to buy gold from African countries for way cheap price?
  I got an offer about gold nuggets purchase from a friend living in Africa. But the price he offers is much cheaper than the world marketprices (for gold nuggets). He claims buying from the source. There may be any scam here?
• When buying gold nuggets what kind of certificate and documents should I be provided with?
  You need to be sure that buying is legal in the country where you are buying it. And eventually, it should be legal in any country where you are bringing it into. Otherwise, when buying gold nuggets, there are and should be no certificates or similar documents. You would know what is gold, and be able to recognize that it is gold. Nuggets are often very unique gold pieces and have little more value than the gold value itself. Nuggets are rare, more rare than diamonds. They are all unique to each other. There are no nuggets that lookalike.
• I'd like to buy gold bullion and store it in a Singaporean bank, how do I do that?
  Why gold? Because of economic uncertainty. How much? Not a lot but since I don't want to spend time managing real estate or look at stock prices, gold is the best. Why Singapore? I trust their banking system and since I travel there every year on average it's easier.
• How can I meet big gold sellers?
  While you have not defined what it means “big”, as for someone it may be 100 grams of gold, for someone that is 2 tonnes of gold, there is still opportunity to meet such gold sellers. You need to represent yourself correctly, due to the money laundering and frauds in the business. You should have a company, or at least bank account with bank reference letter and confirmation of your funds, to make it more believable when you are to buy gold.
• Why is gold produced different from gold sold reported by a gold mining company?
  Question is too general. Some companies will have same quantity of gold produced and sold, while others may keep some quantities as assets for later. It is matter of the strategic plan of the company. There is no stipulation that gold produced has to be sold.
• What is the country that sells the cheapest gold?
  I guess there is nobody in the world that has insight in that kind of question. I can speak out of my experience. Back in 2009, I have noticed that gold as scrap is valued very little in Croatia, they have been paying 3-4 euros for gram of 14 karat gold, or regardless of which quality. In 2010. I have opened a company in Croatia and had business for next 2 years, when the market has changed due to increased competition.
• Gold: What books do you advise a newbie in commodity investment to read?
  I have ZERO background in finance. But I understand the big picture of the Gold Standard, Petro-Dollar System, inflation, and the fiat currency implications on economy. Hiring an advisor is NOT an option. I want to buy gold as a long-term investment.
• Is refined gold (999.9) obtained from broken gold and refined, same as investment gold (999.9)?
  Gold is gold, and its physical content may be the same. However, definition of investment gold is not the same as refined gold. Investment gold is hallmarked and assayed by recognized refineries, such as those specified with the London Bullion Marketing Association at http://www.lbma.org.uk - Such gold may be traded for cash without new melting and assaying. It has certain length, width and height, including the weight. It is investment gold because it can be easily bought, without assaying, and it may be sold to banks directly or to gold dealers without melting and assaying. By comparison, the refined gold, which is not investment gold, has to be assayed and melted for verifications of its quality and quantities which imposes expenses and burden when exchanging it for cash.
• Why women are fond of gold?
  Why women are fond of gold?
• Is there a country that I can buy large amounts of gold, say $2m and not have any party be obligated to record the transaction?
  I want to operative fully in the framework of the law (the transaction), just don’t what my ex-wife to know and not have any piece of paper come up during the divorce hearings.
• Can some one artificially make gold or any other heavy metals by thermonuclear reaction?
  Good answer is on Wikipedia: Synthesis of precious metals
• Where is the best place for silver and gold jewelry manufacturing and production?
  I am starting a jewelry brand and looking for the best, high quality production and manufacturing factories. Protoyping included.
• What are the best ways to hide wealth from creditors? Sell everything and buy gold maybe?
  One has to consider the laws, as "hiding" implies that one shall break the laws. In most of countries, one has to make an affidavit not to own anything, and make false affidavits may be a criminal act. It is better to protect than to hide. Protection can be done through entities holding the assets. One may move from the position of owning something to controlling something. The motto is control everything, own nothing. That is how Rockefeller was doing.
• What's the best way to invest in gold (as a hedge against a stock market crash/recession)?
  Place small advertising, that you buy gold jewelry, silver jewelry, silverware, silver plates, gold objects, platinum, even palladium teeth and such precious metals. Pay really little, like 80-85% for it. It will take some time. Visit some areas where you can buy from dealers quickly with prices like 10% less the spot prices. Find best refineries. Exchange the purchased gold and silver for hallmarked gold and silver bullions.
• How do I know which silver bars or gold bars I should buy for investment from JM Bullion?
  Looking into investing in Gold and Silver. I most likely will purchase from JM Bullion http://www.jmbullion.com but there are so many options that I don't know which exactly one i should buy. This will be a long term investment where I will buy a few bars and stash them away.
• Which kind of concentrating table used in gold mining plant?
  There are many various gold mining plants, including many various shaker tables. What you are saying here is concentrating table but the terminology is rather shaker table. And there are many various types, I recommend you review the YouTube search for it.
• What is the best way to find a gold-mining joint venture partner?
  I own a gold mining demarcated area in Tanzania. It is in Kilindi District, near un-demarcated areas with artisan mines. I look for a joint-venture with someone who has the expertise and capital to undertake gold-mining operations.
• I have easy access to cheap raw gold material, what kind of business could I do with it?
  You should specify what it means. As if something is cheap, and gold. This almost does not exist on this planet.
• What the relationship between age of gold with gold's price?
  There is absolutely no relation. That is why the gold is precious metal, it does not change over time, it does not rust. Whoever tell you something about "aged" gold bars or gold bullion, they don't know what they speak about. Sometimes, non authoritative gold bullion will be re-smelted, refined and hallmarked with new brand, but that does change the price of gold. Most of refineries I know will pay for such gold 99% of the actual gold price.
• What is benefit for smugling gold?
  Clear benefit is the profit. But is there only a benefit or disadvantage? By smuggling gold you would receive profits, but you would also endanger your life, your future, and raise risks to loose all the gold as customs and police could confiscate it, unspoken that you become an easy target for criminal people.
• Can we get free metal like pure gold? And why gold can not corrode?
  My opinion is that all elements, including gold, platinum, lead, everything, it was created by someone, some people call it God, I don't. But it was created.
• What was Rutherford's Gold Foil Experiment?
  What was Rutherford's Gold Foil Experiment?
• How do I get scratches out of a gold plated belt buckle?
  You go to the jeweler and tell him to polish it for you, and a good jeweler can gold plate it again for very very cheap price. Some can do gold plating within 5 minutes.
• How much is required to establish a medium-sized gold, platinum or ferrochrome mining company
  Calculate all your other estimated expenses, such as energy, communication, accommodation, medicine, taxes, licenses, royalties, administration, estimate everything you find.
• Anyone bought gold from AP gold and precious metal company located in Cameron?
  Trying to make a gold deal with African gold suppliers? Welcome to the page where you get to read all essential facts about African gold deals, we call it the reality shock factors, as yes, you might be shocked to find out you have wasted months and maybe even years in attempting to close the deal with African suppliers on distance. Some intermediaries are living in fantasy in the nice and warm place behind their computers, trying to get commission on "gold with discounts", especially when arriving from Africa.
• Can you trade gold automatically with a program for free?
  You can certainly trade on such trading websites, but it will not be automatically. Because if anyone would invent automatic method of income on gold trade they would never tell it to public.
• What is the value of a 10K gold class ring from Jostens?
  I may refer to the value of 10 karat. Karat is old measure for gold. If you divide the karat number by 24, you will get the percentage of pure gold in the metal.
• What is the best way to invest 100k long term to gain the most?
  Passive investments bring less money. Active investments and involvements bring more income over long term. It would be best for you to have your own business idea, and to invest in yourself, in your own business plan.
• If you mine gold without telling anybody then would the value of gold decrease?
  If you mine gold without telling anybody then would the value of gold decrease? Only if you mine much of gold, without telling anybody, and without selling that gold, the price of gold would slowly increase, and at some point of time, you would be able to sell it. Such sale of accumulated gold would need to be carried out carefully, as the sale alone could bring the prices down.
• How invest money in gold?
  How invest money in GOLD? If I would say "Don't do it" in 2009, I would never start a profitable gold trading business. I was buying and selling gold with my hands, practically and directly from people.
• Gold: are people investing in gold often?
  Gold: are people investing in gold often? When I was putting some 2 kilograms of gold in the bank safe, I have seen a person, coming in with the bag full of gold. It was very hard for him to pull on it. In fact he used a pulley. I heard the sound inside, I know it was gold by sound. He was then putting gold in the boxes and in the safe box, in the cellar of the bank. Over the time I have seen many people coming to the safe box, and keeping gold safely stored there.
• I have $500. Should I invest in gold or should I go for stocks?
  I have $500. Should I invest in gold or should I go for stocks? What is a good way to invest so that I get proper returns? If it's stocks, which ones should I buy?
• What can be the benefits for a gold mining company to have a consultant making gold price forecasts?
  What can be the benefits for a gold mining company to have a consultant making gold price forecasts?
• Which machines are suitable for gold mining?
  Gold mining is the process of mining of gold or gold ores from the ground. There are several techniques and processes by which gold may be extracted from the earth. Which machines are suitable for gold mining?
• What is the best way to raise operation seed money for a gold mining claim?
  What is the best way to raise operation seed money for a gold mining claim? We have a gold claim that we would like to raise money for new equipment to help expedite the operation.

Related pages

• Gold2me Resources on Gold Trade and Gold Mining Businesses
  Gold2me.com is website providing resources on gold trade, gold mining and gold related international businesses, it points out to international refineries, international gold buyers, and where one may purchase gold, how to purchase gold, how to deal with gold bullion, and technologies related to gold production, refining and assaying.
• How to Start Your Own Gold Mine
  The resources on this page may help you start your own gold mine in countries with the all year season, and rich gold lands such as Tanzania. The consulting and guidance that you may receive in the program are bundled with the mineral rights to at least one licensed mining site, so that your gold mining production may begin within the first 45 days after your mining and exploration company has been registered.
• How to get cheap and discounted gold from mining production?
  We are in mining development. Do you know that all mining companies in the world are pre-financed, either through private shareholders or as public companies or by gold futures or prepaid gold forward contracts. There is no way to get cheap gold in Tanzania in bulk for foreign buyer who sit in the office. You can just get fake gold and get scammed and lose money.
• Gold Mining
  Gold mining generates the true physical wealth. Yet the lucrative business of gold mining is distant to many investors and businessmen. Here you may find out the resources that may help the investor to start own gold mining company and to understand the stages of the mining development.
• What is the best way to raise operation seed money for a gold mining claim?
  What is the best way to raise operation seed money for a gold mining claim? We have a gold claim that we would like to raise money for new equipment to help expedite the operation.
• Which machines are suitable for gold mining?
  Gold mining is the process of mining of gold or gold ores from the ground. There are several techniques and processes by which gold may be extracted from the earth. Which machines are suitable for gold mining?
• What can be the benefits for a gold mining company to have a consultant making gold price forecasts?
  What can be the benefits for a gold mining company to have a consultant making gold price forecasts?
• If you mine gold without telling anybody then would the value of gold decrease?
  If you mine gold without telling anybody then would the value of gold decrease? Only if you mine much of gold, without telling anybody, and without selling that gold, the price of gold would slowly increase, and at some point of time, you would be able to sell it. Such sale of accumulated gold would need to be carried out carefully, as the sale alone could bring the prices down.
• How much is required to establish a medium-sized gold, platinum or ferrochrome mining company
  Calculate all your other estimated expenses, such as energy, communication, accommodation, medicine, taxes, licenses, royalties, administration, estimate everything you find.
• What is the best way to find a gold-mining joint venture partner?
  I own a gold mining demarcated area in Tanzania. It is in Kilindi District, near un-demarcated areas with artisan mines. I look for a joint-venture with someone who has the expertise and capital to undertake gold-mining operations.
• Which kind of concentrating table used in gold mining plant?
  There are many various gold mining plants, including many various shaker tables. What you are saying here is concentrating table but the terminology is rather shaker table. And there are many various types, I recommend you review the YouTube search for it.
• Why is gold produced different from gold sold reported by a gold mining company?
  Question is too general. Some companies will have same quantity of gold produced and sold, while others may keep some quantities as assets for later. It is matter of the strategic plan of the company. There is no stipulation that gold produced has to be sold.
• How can you determine plate thickness on gold plated jewellery?
  and how many plate levels (eg. Triple plated) denounces a good or better quality of gold plated jewellery or ornament?
• What happens to gold after it is mined?
  How is it processed, how is it sold, and what determines where it is stored?
• How do you make your own gold mine?
  Small scale mining is easy when one knows how. This introduction may help the reader to start in small scale mining activity. The general information shall give a guidance on how to properly look into the future of own sustainable gold mining. Knowledge is power. Just like in many other areas of business, knowledge is power. First thing to do in order to start a new gold mining activity is to obtain as much knowledge as possible for your future mining development. You certainly don't need to be an educated miner, but you do need to have access to knowledge and to experts that may help you during your beginning stage.
• What equipment is needed to extract gold on a small scale for a mine?
  I am interested in the equipment, the processes and the cost needed to build a low tech / semi-industrial mining operation to extract gold in West Africa.
• How can I invest $320.000? I need minimum guaranteed income of $25.000 per year (with each year % increase / inflation protected)
  There are many ways to invest US $320,000 and get minimum and guaranteed income of US $25,000. Question is justified. You can get US $25,000 minimum on investments. You need to find your source, financial institution, company or a bank that will help you with such. When one is surrounded with people who don’t know more about business and investing than what is available in their own city or country, it may be that global opportunities and business investment opportunities are seemingly limited.