- Buying and selling gold in Uganda, Tanzania and Kenya
Buying and selling gold in Uganda, Tanzania and Kenya
In order to successfully navigate the gold trade industry in East Africa’s Uganda, Tanzania, and Kenya, newcomers should prioritize a comprehensive understanding of market dynamics, exercise due diligence, and acquire straightforward market knowledge. This will not only enhance their chances of success but also minimize potential risks and maximize opportunities in this lucrative sector.
Two types of gold market: the real gold trade and the virtual apparent gold market
There are different types of gold market: the real gold trade and the virtual apparent gold market, and we highly recommend reading the article for any newcomer in the gold business in East Africa, or elsewhere.
The virtual, apparent, gold market
The virtual gold market is the online platform that people turn to for information and the source that instills belief in gold investment prospects. Oh, you’ll be amazed by the abundance of brokers out there! They come in all shapes and sizes - brokers pretending to be brokers, who probably wouldn’t know a real business deal if it smacked them in the face. But don’t worry, they’re hard at work…sitting on their couch, munching on snacks, and flipping channels while dreaming of striking it rich with some imaginary gold deal. They just love to fantasize about the fat commissions they’ll supposedly earn from this mythical gold, conveniently available at bargain prices.
And let’s not forget about those wannabe gold buyers! They’re a special breed of brokers, pretending they’ve got stacks of cash to buy up all that glorious gold. But the truth is, they’re broke as a joke. They’ve got no money, but they pretend like they’re big shots in the gold business, parading around with their magical recipes for success. Like, seriously, have they even bothered to learn what CIF or Incoterms mean? Nah, why waste their precious time on silly things like education, when they can just make up their own definitions?
Oh, and by the way, they’re too cheap to invest in a tiny booklet that could enlighten them about the actual meaning of these terms. It’s pure comedy gold, really. These clueless buyers would rather stumble around in the dark, pretending to know everything, than put in a little effort to truly understand the gold trade.
Sarcasm intended.
Keywords in the East African Online Market for Virtual and Counterfeit Gold
Here are the keywords indicating imaginary gold, fake gold deals, and involvement in scam and crime in the East African Online Market for Virtual and Counterfeit Gold.
paying for export taxes: Paying export taxes suggests a scam as legitimate gold owners would handle the payment themselves, and paying results in loss of funds and no actual gold received.
security company: “Oh sure, because we all know it’s totally legit for a security company to conveniently keep your gold hostage and trust they’ll never disappear with it.” - Do not be deluded, any mentioning of “security company” holding the gold is high indication of a scam.
gold in transit: Any gold being offered for sale while “in transit” is a suspicious transaction, as it should reach its intended destination and cannot be sold while in transit without violating customs regulations. Any requests for tax payments in such cases are scams, and dealing with gold in transit should be avoided if you haven’t exported any goods. Oh right, because plunging headfirst into an intricate web of import and export regulations and procedures sounds like such a breeze! Absolutely anyone can handle the delicate task of managing gold trade in transit without a single ounce of experience. Go ahead, jump right in and make a complete mess of it! It’s not like there are any potential legal consequences or financial risks involved. Who needs knowledge and expertise anyway?
gold from inheritance: “Oh, I’m sure claiming to inherit gold from a shady transaction is a foolproof way to secure my financial future.” – is that what you think, smart guy? If it’s not your father, you won’t inherit it; avoid associating with questionable transactions or claiming to inherit gold to prevent becoming an accomplice in perjury and losing money in an inheritance scam.
fiancee or wife with gold: “Getting a wife you’ve never met, who’s only interested in your gold? Welcome to the world of ‘scam-matrimony’ where ‘imported happiness’ never leaves imaginary borders!” – A fiancée or wife that has never been seen in person is a clear sign of a scam, where the victim is deceived into pursuing a nonexistent spouse and fortune, ultimately receiving nothing in their own country.
seller avoiding licensed buying office: When a seller avoids a licensed buying office, it indicates a potential scam due to the office’s security measures and reluctance to leave the compound with bullet holes.
dubious procedures: In Africa, the legitimate procedure is to bring gold, assay it, and make immediate cash or wire payments, any other procedure involving document flashing is a sign of a scam.
document flashing: In Africa, documents are typically generated after a transaction, and dealers in countries like Uganda, Kenya, and Tanzania usually require proof of gold before requesting any documents, with legal dealers asking about legality, while an excessive display of documents by a seller to foreign buyers often indicates a scam.
bringing gold by CIF: Seller lures unknowledgeable buyers with false promise of free gold through CIF Incoterms, attracting brokers like bees to honey, even though gold is not sold or shipped under CIF terms.
gold offered to foreigner: The plain truth is that any offer to sell gold to foreigners, no matter the justification provided, should raise suspicions of fraud. Kenya, Uganda, and Tanzania are teeming with buyers of gold, so there is already a significant demand in these countries. Selling gold here, whether legally documented or not, is incredibly effortless.
fake gold nuggets and bars: But how do you know they are fake? If you are lured into believing that a button-like metal of yellowish color is gold, that means you have no experience with gold! Those are fake gold nuggets made from brass welding rods and metal plates! Ask yourself, what qualifications do you have to buy gold? If you have not undergone any course or seminar on how to buy gold, well, the hard fact is that most probably you are a layman in the business and you will simply become a victim of a scam. That is a more expensive way of paying for lessons.
And for your note, there is just one simple procedure to buy gold in all of the Africa, and that is gold for cash. Documents, contracts, export documents, customs, all those issues are handled and solved, but when buying gold, remember that there is just one procedure to bring the gold and get paid for it in the professional office.
The real gold trade in East Africa: Uganda, Tanzania, Kenya
Let’s dive into the actual gold trade in East Africa, providing you with all the essential information upfront to save you from searching for nonexistent fast transactions.
COMPETITION IS HIGH: Intense competition within East Africa drives abundant availability and favorable returns for selling gold, attracting higher prices compared to offers from foreign buyers.
If it is understood that there is no need for “gold buyers” here, as every legitimate gold seller already has their buyer, then it will become apparent that trying to engage in gold transactions without being physically present in the country will not be successful. Once this understanding is reached, other relevant factors can be considered.
Do not even think that you got some benefit there by “having a gold buyer”! There is no benefit whatsoever! We are all gold buyers and gold sellers. There are young girls walking on every mining site with women’s purses, buying gold. There are mobile money booths buying gold. There are dealers on borders and in cities who are buying gold. We are not interested in unknown and distant gold buyers. A true gold buyer is physically located in the country. Are you here? If not, you are not real as a gold buyer and nobody cares about your connection to a refinery in Dubai or elsewhere.
HIGH PRICES ARE PAID FOR GOLD in East Africa, in Uganda, Kenya, Tanzania, best prices are paid, and master dealers may often pay over the LBMA price. So do not think that by asking for some “discount” that you are offering some benefits. Read our article: “I have a gold buyer”, alright, but where is the advantage?
A gold buyer in East Africa, in Uganda, Kenya, Tanzania, must have a physical office to compete with the existing market. As a foreigner who hopes to get gold from the area, it is almost impossible to create a sustainable business due to the high competition of gold dealers in every city and country.
We suggest that gold buyers establish a solid presence in the country by acquiring land through a 99-year lease and setting up physical offices.
The physical presence of a well-established office in the country is crucial in building trust between genuine sellers and buyers, ultimately allowing the office to secure discounts.
So, even if you are able to obtain a 10% discount on the purchase of 250 kg of gold each month, it is crucial to understand that this does not guarantee a 10% profit due to other factors that come into play. These include the payment of royalties, the presence of police within the compound, and the potential arrangement of a tax officer occupying a space in your own building. Hence, engaging in a legitimate business necessitates ensuring its legal aspects are thoroughly addressed.
HIGH PRICES PAID FOR GOLD IN EAST AFRICA: In order to successfully compete in the gold market in East Africa, it is crucial to recognize that the existing and well-established gold dealers in the region already pay premium prices. Therefore, it should come as no surprise to discover that dealers in locations such as Kampala, Uganda, or Arusha and Dar es Salaam, Tanzania, may pay prices that are 2% below or equal to the London Bullion Market Association (LBMA) benchmark. In fact, in some instances, these dealers may even offer prices that surpass the LBMA benchmark, particularly in areas like Dar es Salaam and other similar locations.
Therefore, it is important to avoid falling into the misconception that there is a surplus of discounted gold in Uganda, Kenya, and Tanzania.
Obtaining Authentic Gold from East African Countries: Uganda, Kenya, and Tanzania
Set up your own physical location for legal gold dealerships in these countries, as it is an effective method to procure authentic gold. Those dealers who have already established themselves are currently enjoying monthly quantities of 150 - 250 kg and even more.
Embrace a collaborative approach by forming strategic alliances with miners and maximizing investments in mining sites. Each miner may require a substantial investment of at least US $800 or more. Remarkably, successful gold dealers have already invested a staggering amount of $150,000, enabling them to buy an impressive 4-5 kg of gold on a daily basis. Investing in gold mining not only proves to be an ethical means of obtaining gold from individuals but also serves as the optimal approach to promoting your gold buying office.
Offer high price for gold. If your company really has all the money, then by offering higher price for gold you may be able to tap into the market of gold straight from existing gold dealers. This means acquiring 500 kg of gold per month and more than that! We recommend visiting us in the country to get this expert connection.
Collaborate on market of gold futures market. Purchase gold from largest established companies such as Barrick, Anglo Gold Ashanti, by making future contracts on gold pricing and deliveries. This is very professional way of doing business. For assistance, do not hesitate to contact us.
Engage in Remote Gold Trade Office Establishment which enables purchasing gold for better prices such as 15% less LBMA and even 30% less LBMA. To unlock access to larger quantities and ensure a consistent supply, it is crucial to maintain a constant presence in the country and establish physical presence in remote areas where gold mining villages are located. By combining this approach with strategic partnerships with gold miners, the winning strategy can be achieved.
If you’re interested in obtaining gold and generating profits through gold mining activities in Uganda, acquiring the Executive Summary to Start Your Own Gold Mine with Mineral Processing will provide you with valuable insights. To obtain a copy of this document, please feel free to contact us.
Buy gold from reputable dealers in the country, ensuring that you forget possibility of purchasing any with significant discounts. Professional buyers who are knowledgeable about the industry may consider purchasing quantities such as 150-250 kg or 500 kg. The market price for gold is typically equal to or better than the LBMA London price. It is worth noting that many buyers in Dubai pay up to 6% more for gold, so it is important to carefully strategize your entry into this intricate market. Contact us if you need this type of valuable connections.
Based on the provided information, you may see that we are an expert consultants company that primarily works with identified professionals or individuals who aspire to become professionals. Our services include providing estimates, as well as extending direct or indirect invitations to engage in certain activities. For these services, we charge a fee.
Additionally, we impose a small fee on both buyers' and sellers' requests in order to distinguish between reliable individuals and those who may not have good intentions or potential. This fee serves as a means of separating the good seed (trustworthy and serious individuals) from the bad seeds (potentially untrustworthy or unserious individuals).
Our company excels in consulting services, targeting professionals and aspiring professionals. We charge fees for estimates, invitations, and requests to ensure the quality and reliability of the engagements we facilitate.
Contact us to Start Your Own Gold Mine
Contact us to Start Your Own Gold Mine. There is a simple rule at Start Your Own Gold Mine: if we can help you, we do, whenever and wherever necessary, and it's the way we've been doing business since 2002, and the only way we know
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