SELLING AND BUYING GOLD
Forget the performance bonds, escrow and parallel accounts, the meaningless SGS certificate, Bank comfort letters, table top meetings, and the various attestations and protestations that the product is valid, that title is clear, that people are responsible and full faith, et cetera. GLD Gold is bought and sold by bullion banks through a bank bullion officer under what is called "Swiss Procedures." The Swiss Procedures are very simple and direct.

Good London Delivery Gold (GLD)

For Good London Delivery gold (GLD) the buying bullion banks pay immediately upon delivery. Title is retained by the seller until payment.

GLD gold is:

Usually 12.5 kg bars, (possibly 1 Kg bars and/or other forms) 999.5+ Au, with: London Metal Exchange (LME) accepted hallmark, and proper provenance. Presently held in custody with full responsibility by a London Metal Exchange accepted depository, who:certifies clean, clear title, and ships the Au under bond to the buyer's LME accepted depository at seller's cost.

All GLD gold is registered. GLD gold can be authenticated through secure banking channels by a bank's licensed bullion officer.

By banking definition, a Full Corporate Offer (FCO) for GLD gold contains the data that allows verification by a bank's bullion officer. The minimum required data is the complete certificate number(s) for the gold, the SKR(s) indicating the gold certificate numbers from a registered Secure Depository, or bullion officer details, name/number, and letter from seller authorizing buyer' officer to contact. The buyer/bullion officer will not authorize and/or sign any document until the GLD gold has been verified, as this is contrary to all bullion banks gold procedures. The buyer's representative will issue an FPA when the Full Corporate Offer has been verified. According to banking rules the buying bullion officer will not contact the selling bullion officer until he has written permission from the seller to do so, to do so would be considered solicitation.

All Other Gold

If the gold does not meet all of the above specifications it is not GLD gold.
For all non-GLD Gold, (former GLD (nominally 1 a/o 12.5 Kg bars), dory, gold dust, ingots, nuggets, etc.) the bullion banks pay immediately upon proof of what they are buying. Title is retained by the seller until payment.
 
Proof of what they are buying is accomplished by the seller delivering what he says is gold to designated airport closest to the buyer's designated refinery depository at seller's cost. The seller provides evidence of clean, clear title. The buyer arranges to pick up the gold by bonded courier ( e.g., Brink's) and transport to the refinery. The refinery depository refines the said-to-be-gold at the buyer's cost. The refinery depository refines the material, assays the metal melt, and issues its Au credit memorandum. Assay samples are retained. The refinery, seller, and buyer each agree as to the accuracy of the refinery's credit memorandum. The seller retains title until he is paid. He is paid immediately upon the refinery's issuance of their credit memorandum. The refined gold is later converted to GLD status and sent to the buying bullion bank by the buyer.