From one of my top diamonds and gold buyers!

" Let me explain what happens when the buyer issues these instruments:

The so called seller activates the instruments with a 2% performance bond, they then take the instrument to countries like Turkey where they can obtain a loan of up to 80% of the activated instrument value.

The seller then uses the money to purchase dust locally, take it to the refinery and have it assayed etc and sells the bullion. They never deliver the dust, the initial instrument issuer ends up with their funds blocked in their account until they can obtain the funds for the performance bond. They are not out of pocket but neither do they receive any gold dust.

The original buyers loss is the inability to use their blocked funds and of course never receiving product. This scam is extremely popular and no buyer should ever issue these instruments unless they want to help someone else get rich."

All the best,