Larger Gold Reserve Program purchases can now be supported by a bank guarantee covering 100% of the purchase price, issued before final settlement and at no additional issuance cost to the buyer.
Vexillum Minerals is pleased to announce the introduction of an optional Bank Guarantee facility for buyers purchasing 50 troy ounces or more through the Vexillum Gold Reserve Program.
The new facility has been designed specifically for larger purchasers who want additional security before transferring substantial funds for the future delivery of physical gold.
Eligible buyers may elect to have 100% of their purchase price covered by a Bank Guarantee, arranged and paid for by Vexillum Minerals FZCO.
Crucially, the guarantee is issued before the buyer is required to settle the outstanding purchase balance and can be sent directly by the issuing bank either to the buyer or to the buyer’s nominated bank.
This allows the guarantee to be independently verified before the larger balance of the transaction is completed.
How the Bank-Guaranteed Purchase Process Works
The facility is available as an option on purchases of 50 troy ounces or more.
A buyer wishing to use the facility will:
- Confirm their gold allocation and select either the 3-month or 6-month delivery option.
- Complete the required KYC/AML procedures and provide satisfactory Proof of Funds.
- Execute the Gold Purchase Agreement.
- Pay a 2% Security Deposit, which is credited in full toward the purchase price upon completion.
- Vexillum instructs its banking partner to issue a Bank Guarantee covering 100% of the Total Purchase Price.
- The issuing bank sends the guarantee directly to the buyer or the buyer’s nominated bank for independent verification.
- Following issuance, the buyer settles the outstanding balance within 3 Banking Days.
- Vexillum delivers the contracted physical gold in accordance with the selected programme term.
Vexillum bears the cost of issuing the Bank Guarantee. There is no additional guarantee issuance charge to the buyer.
Protecting Larger Forward Gold Purchases
The Bank Guarantee provides a separate layer of protection from the Gold Reserve Program’s existing downside-protection mechanism.
The two address different risks.
The Gold Reserve Program’s downside protection addresses the risk of the gold price falling below the buyer’s protected purchase price. Where the applicable programme conditions are met, the buyer still receives their physical gold and also receives the applicable rebate.
The Bank Guarantee, by contrast, is designed to protect the qualifying buyer’s purchase funds against Vexillum failing to deliver the contracted physical gold.
Subject to the terms of the Gold Purchase Agreement and Bank Guarantee, a claim may be made if the contracted physical gold has not been delivered within 30 calendar days following the applicable Delivery Date, taking into account any valid extension under the contractual Force Majeure provisions.
Designed for Buyers Who Want Additional Security
The Bank Guarantee is optional.
Some experienced bullion buyers, family offices and other larger purchasers may be comfortable completing their transaction through the standard Gold Reserve Program process. Others may require additional institutional protection before committing substantial capital to a forward physical-gold purchase.
The new facility gives qualifying buyers that choice.
Importantly, the buyer does not simply receive a document forwarded by Vexillum. The guarantee is transmitted directly by the issuing bank to the buyer or their nominated bank, allowing the instrument to be independently authenticated before the outstanding purchase balance is transferred.
Gold Reserve Program
The Vexillum Gold Reserve Program enables eligible buyers to purchase investment-grade physical gold at a fixed discount to the prevailing LBMA Gold Price for future delivery.
Current purchase options include:
3-Month Delivery — 5% below the prevailing LBMA Gold Price
6-Month Delivery — 10% below the prevailing LBMA Gold Price
The current programme has a maximum capacity of 2,000 troy ounces, with allocations accepted subject to availability.
The optional Bank Guarantee facility is available for qualifying purchases of 50 troy ounces or more.
Interested in Purchasing 50+ Troy Ounces?
Buyers considering a larger allocation can contact the Vexillum Minerals team to discuss availability and request the Bank Guarantee purchase procedure.
Vexillum Minerals FZCO
Email: sales@vexillum-minerals.com
Website: vexillum-minerals.com
The Bank Guarantee facility is subject to eligibility, satisfactory KYC/AML and Proof of Funds, execution of the applicable Gold Purchase Agreement, payment of the required Security Deposit, banking availability and the terms of the applicable Bank Guarantee. This announcement is for information purposes only. The Gold Purchase Agreement and Bank Guarantee contain the definitive contractual terms.