Explore our comprehensive overview of the gold supply offered by small to medium-scale gold miners in various locations across Tanzania. To facilitate legal gold purchases in Tanzania, individuals or companies can obtain a Broker License, allowing them to buy minerals locally, while Dealer Licenses, requiring at least 25% Tanzanian ownership, enable individuals or entities to buy, sell, and export minerals.
1. Gold Specifications:
– Purity: 90% Average
– Form: gold bars /nuggets
2. Gold Sourcing:
Supply Chain: Government-registered gold brokers collaborate closely with a network of reputable dealers and artisanal miners practicing ethical and responsible mining. They collect gold from miners and sell it to dealers at a discounted price, as indicated by the daily rates set by the Bank of Tanzania. A detailed breakdown of the pricing structure is provided later in this guideline.
Verification: Before any transaction takes place, the government conducts thorough due diligence to ensure the legitimacy and authenticity of the gold. This involves verifying legal documentation, certifications, and tracing the origin of each gram of gold.
3. Pricing and Payment:
Pricing: The price of the gold will be based on the prevailing market rates at the time of the transaction. To be a seasoned professional, you need to stay updated on market trends that will offer you fair and competitive pricing.
Decoding Gold Pricing in the Tanzanian Gold Market
The Tanzanian government sets a daily Gold Indicative Price for certified gold dealers, about 10% less than the LBMA price. To check the latest gold price on a specific day, visit the Bank of Tanzania Official Sites. Dealers and brokers further offer reduced rates of 10% and 18%, respectively, for brokered gold treated with mercury.
Please note that the prices mentioned are for 99.99% pure gold and may vary based on the actual gold purity percentage. Final pricing is subject to daily market fluctuations and negotiations.
Taking the example gold price of $62 per gram and the conversion rate of 1 USD to 2520 TZS:
1. BOT Price (Bank of Tanzania):
– 156,547,015.49 TZS per Kg of Gold – 62,065.41 USD per Kg of Gold
2. Dealers Price (10% less than BOT Price):
– 140,892,313.94 TZS per Kg of Gold – 55,851.97 USD per Kg of Gold
3. Brokers Price (10% less than Dealers Price):
– 126,803,082.54 TZS per Kg of Gold – 50,316.88 USD per Kg of Gold
4. Broker Gold Rush (Treated on Mercury, 18% less than Brokers Price):
– 104,178,728.09 TZS per Kg of Gold – 41,313.57 USD per Kg of Gold
Before exporting. Dealers/buyers, or miners exporting, must pay the below specified taxes and fees.
– Royalties – 6%
– Inspection fees – 1%
– Service Levy – 0.3%
– Tanzania Revenue Authority – 2%
Totals: 9.3%
Other export related costs,
Export Permit – 100 USD
TRA release order – 150 USD
Logistics and Shipment Costs – Depending on Destination and Agency used.
Securing a substantial amount of gold entails directly sourcing it from miners, as many dealers aim to export and boost their profit margins. Due to competition, dealers often sponsor miners’ daily operating costs, with an agreement that the miners will sell their acquired gold to them at discounted prices. This business model provides serious buyers with a strategic advantage and facilitates easier gold collection.
The annual fee for a gold broker license is approximately $250, while a gold dealer’s license incurs an annual fee of about $1200.
Payment Terms:
Parties discuss suitable payment terms that provide security and convenience for both parties involved. Common options include bank transfers or other mutually agreed-upon methods.
4. Logistics and Shipment:
Packaging and Transport: Once the gold reaches the final entity, the dealer, it is sealed with official Tanzania government seals and documents. The gold is securely packaged in accordance with international standards to ensure safe transit. Dealers often opt for reliable shipping methods, such as insured courier services or trusted transportation companies, for delivery to their preferred destination. The shipment cost is the responsibility of the buyer.
Insurance: To safeguard the gold against unforeseen circumstances during transit, comprehensive insurance coverage can be arranged. Typically, transporting companies like G4S, Brinks, SGA, and similar entities in Tanzania handle the insurance coverage.
5. Compliance and Legal Considerations:
All requisite legal documentation, encompassing certificates of origin, export licenses, and assay reports, will be furnished to ensure full compliance with both national and international regulations. It is imperative to rigorously adhere to anti-money laundering (AML) and know-your-customer (KYC) procedures, promoting transparency and integrity in every transaction.
In conclusion, the information presented provides a comprehensive overview of gold purchasing processes in Tanzania. For further assistance or clarification on any of the matters, please feel free to reach out to us at info@niwa.ltd
