Gold
EasyGold CIF Explained
EasyGold CIF
Advancing funds before gold moves is standard in this trade. What is not standard is what backs that advance, who holds it, and who is standing next to you when it matters.
The counter-argument is straightforward. When the buyer hands over the advance, the seller receives that cash under no joint arrangement. There is no dual custody of the funds. The seller holds the cash entirely. If that asymmetry is acceptable on the cash side, there is no principled basis for proposing it on the collateral side.
EasyGold will not work with sellers who insist on dual custody. It defeats the purpose of the security entirely.
The collateral arrangement is governed by a Collateral Management Agreement, signed by the buyer, seller, and agent before anything moves. It sets out the value of the collateral, the terms under which the buyer holds it, and the conditions for its return.
Secure collateral
No advance without collateral.
No exception.
Exporting gold from Kenya requires costs to be met before the shipment moves; the buyer advances between 7% and 10% of the total consignment value to cover them.
Transport, assay, documentation, agent fees, royalties, and government taxes all fall due within Kenya before the gold leaves.
In exchange, the seller provides doré gold as collateral of equal value.
The buyer places this into a vault in Nairobi under sole custody. The seller has no access to it. The advance is never given up for nothing.
This arrangement is called - Single Custody.
Why rogue sellers argue against Single Custody
Some sellers and some agents will propose an alternative. They argue that sole custody gives the buyer too much control over an asset that belongs to the seller. They suggest that both parties should hold a key; that this is fairer; that it protects the seller from a buyer who might take the collateral and walk.
Two documentser.
One transaction.
The CIF arrangement runs on two governing instruments. Neither is optional.
Collateral Managemnent Agreement
The Collateral Management Agreement establishes the collateral side of the transaction.
It records what has been secured, at what value, under what custody terms, and what triggers its return.
It is signed before the advance is paid.
Sales Purchase Agreement
The Sale and Purchase Agreement governs the main consignment.
It sets out the agreed price, the shipment terms, the destination, and the conditions under which payment is made.
It is signed at the same time as the CMA.
Together, these two documents mean that nothing in this arrangement rests on a verbal understanding. The buyer knows exactly what they hold, what they have agreed to, and what happens at each stage. So does the seller.
Two documents,
One transaction
The CIF arrangement runs on two governing instruments.
Neither is optional.
Together, these two documents mean that nothing in this arrangement rests on a verbal understanding. The buyer knows exactly what they hold, what they have agreed to, and what happens at each stage. So does the seller.
Collateral Managemnent Agreement
The Collateral Management Agreement establishes the collateral side of the transaction.
It records what has been secured, at what value, under what custody terms, and what triggers its return.
It is signed before the advance is paid.
Sales Purchase Agreement
The Sale and Purchase Agreement governs the main consignment.
It sets out the agreed price, the shipment terms, the destination, and the conditions under which payment is made.
It is signed at the same time as the CMA.
The structure described on this page is not unusual. CIF arrangements, collateral, CMAs, SPAs — these instruments exist throughout the gold trade.
What determines whether a transaction completes correctly is not the paperwork. It is the seller who provides collateral without condition, and the agent who moves the shipment without obstruction.
Sellers
We know our sellers personally. They have been identified over years of operating in this market and filtered from the significant number who would not meet this standard. A seller who provides doré collateral without attaching conditions to sole custody is not easy to find. We have found them.
The Agent
The agent is equally critical. In Kenya, licensed agents are the only parties legally permitted to hold gold. A corrupt agent can stall a shipment indefinitely, allowing fees to accumulate until the transaction collapses. We have seen this happen. The agents we work with do not operate that way. They have been selected on exactly that basis.
We are present throughout the process. From the first meeting at the agent's office to the moment the assay is confirmed at the destination refinery, we are with the buyer. That is not a procedural detail. It is the proposition
The arrangement is only as good as the people in it
Shipping
With the collateral secured, the process moves quickly. Export documentation, KRA clearance, royalties, freight and insurance are handled by the shipping agent.
From this point, the process takes approximately three days to complete.
Documents are sent to the consignee at the destination port in advance, allowing any issues to be resolved before departure. The buyer and seller travel together to the destination port. The consignment travels with them.
Throughout the journey, the collateral remains in place under the terms of the CMA. It is not released until the conditions of the SPA are met at the destination.
Complete
On arrival at the destination port, the consignee clears the goods through customs. The consignment is taken directly to the refinery, where a fire assay is conducted. This assay is final and binding on all parties.
Payment is made under the terms of the Sale and Purchase Agreement at the rate agreed and documented before departure. Once payment is confirmed, ownership documents transfer to the buyer and the collateral is released to the seller under the terms of the CMA.
The deal is done
COMPLETE
On arrival at the destination port, the consignee clears the goods through customs. The consignment is taken directly to the refinery, where a fire assay is conducted. This assay is final and binding on all parties.
Payment is made under the terms of the SPA at the rate agreed prior to departure. Once payment is confirmed, ownership documents are transferred to the buyer and the collateral is released back to the seller.
The deal is done
To discuss this further
EasyGold CIF is not a product with a fixed price and a booking form. It is a transaction, and every transaction is different. If you have read this page and want to understand how this arrangement would work for your specific situation, that conversation begins with a call.