Value of gold 2
The official value of gold is based on refined gold and Good Delivery London(GDL) and the fixings set on London Bullion Market Association and normally the second fixing. http://www.lbma.org.uk/pages/?page_id=53&title=gold_fixings
There has been alligations that the fixngs are rigged. Nevertheless that is the basic of gold prices and the value of gold. The gold is refined and in accordance with the standards defined by LBMA, http://www.lbma.org.uk/pages/index.cfm?page_id=27&title=specifications
The gold is then “Investment gold”. If it is not investment gold then there are different rules and regulations for how the VAT is to be paid at the customs in respective country in Europe.
Thus depending of these rules varies between the countries within the European union there are different costs charged during the importation.
Countries like United Arab Emirates do not differentiate between the gold and the investment gold. The major reason for this is that there is no tax actually.
So when deciding on the value of the gold we go from the LBMA quoted prices.
If it is not the value decreases with the risks and the risk assessments in making the gold into LBMA and in accordance with the GDL.
As we know the risks are valued differently based on knowledge and experience. The best risk assessor until the custom clearance at the country of delivery is the seller. From there on the recipient of the gold has the upper hand.
The risk assessment is crucial in defining the value of the gold. So as I see it my cooperation agreement minimizes the total assessment of risks and thus gives the best value for the gold.
Your comments are welcome.
