Navigating the Gold Trade: A Guide to Safe and Secure Transactions

Navigating the gold trade requires diligence, transparency and reliance on reputable partners. Use our traffic light guide below to help you navigate the complexities of the market:

  • Red light: Stop and reassess if anything seems suspicious or if you encounter unregulated dealers
  • Amber light: Exercise caution by identifying red flags and conducting thorough due diligence before making any transactions
  • Green light: Ensure a secure transaction by partnering with one of the few accredited and regulated dealers such as INPIN AFRICA, situated at the Ministry of Minerals NHC House building in Dar es Salaam, Tanzania. This choice minimizes your risk to zero

Identifying Legitimate Sellers 

In an industry plagued by scams, distinguishing genuine sellers from fraudsters is paramount. Scammers often exhibit certain behaviours that should raise red flags for buyers. Master the art of detecting fraudsters, and you'll easily discern who is legitimate.

They decline to proceed with transactions at the official MADINI government office in NHC House, Dar es Salaam, citing unreasonable or nonsensical excuses like their previous visit resulted in the theft or confiscation of their merchandise by the secret police.

Use MADINI to ensure legitimacy, tax compliance and safeguards against fraudulent dealings.

Demanding Upfront Payments: Scammers may request money for travel expenses, smelting services, or taxes in advance, without providing verifiable proof of legitimacy.

Lack of Transparency: Avoid sellers who are reluctant to provide full company details, such as a registered business name, address and website. Scammers often operate under vague, untraceable or other peoples identities.

Unrealistic Offers: Be wary of deals that seem too good to be true, such as extremely low prices or promises of exclusive access to certain refineries. Scammers use these tactics to lure in unsuspecting buyers.

Product Form Not Specified: It's unclear whether the product is in the form of dust, nuggets or bars. Export is only allowed in bar form.

Absence of Physical Location: They are nomads without a permanent physical business office.

Questionable Equipment: While some may claim to possess an XRF Analyzer for assurance, it could be tampered with. An authorized dealer might not possess an XRF Analyzer, yet the crucial step is to have the product assayed exclusively at the MADINI government office at NHC House, Dar es Salaam. 

Refusal to Engage Professionals: Scammers may discourage involving lawyers, notaries or third-party experts, claiming they "mess things up." Legitimate sellers welcome due diligence and legal scrutiny.

Pressure Tactics: Watch out for sellers who pressure you to make quick decisions or bypass standard procedures. Scammers thrive on urgency and impulsive actions from buyers.

Emotional manipulation tactics: they tend to use phrases like "if you are serious, then you would [demonstrate commitment by sending funds upfront]..."

The Smelt Scam: While they might suggest a tour to witness their smelting process, beware that they may clandestinely switch to copper without your knowledge. Smelting is acceptable only when conducted in authorized facilities to guarantee legitimacy and adherence to regulations.

Sample Testing Only: They advocate for assaying only a sample and decline to assay the entire consignment.

Establish Trust 
Through Transparency

Transparency is the cornerstone of trustworthy transactions. At INPIN AFRICA, we prioritize clear communication and regulatory compliance. We understand the buyer's concerns and offer a secure environment for gold transactions. Avoid falling for deflection tactics or unrealistic promises; instead, focus on engaging with authorized dealers who prioritize transparency and regulatory adherence.

Due Diligence

Due diligence is a complex but essential process in gold trading. Take your time to vet potential suppliers, utilize social media and online resources for background checks and consider involving reputable attorneys specialized in international trade. Physical visits to suppliers, thorough testing at trusted refineries or at official government centres and third-party involvement can add layers of security to your transactions.

Leverage Tanzania's 
Secure Environment

Tanzania stands out in creating a secure environment for gold buyers and sellers. Licensed gold trading entities operate from recognized offices within the MADINI Ministry of Minerals NHC House building in Dar es Salaam, ensuring legal compliance and secure transactions. By engaging with authorized dealers like INPIN AFRICA, buyers benefit from a regulated and transparent gold trading ecosystem.

ScamGuard Department

Recognizing the widespread threat posed by organized scammer groups, our dedicated ScamGuard Department offers a suite of services known as Facilitation, Intermediation and Mediation Assistance Services (FIMAS). These bespoke solutions are meticulously crafted to bolster the security of your transactions when engaging with third-party suppliers or buyers. Through FIMAS, we not only safeguard your transactions but also coordinate secure transportation to and from the transaction site, along with recommending safe accommodation for your stay. Prioritizing security is an essential aspect of our commitment to your success.

SG Department

Tanzania | United Kingdom | Zambia

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