Delivery Information

An Authoritative Guide to Bullion Acquisition and Physical Settlement

The landscape of precious metal investment is governed by stringent standards, regulatory frameworks, and specific operational protocols. In the global financial theater, the term Bullion represents more than just physical assets; it signifies a standardized class of high-purity precious metals—primarily gold, silver, platinum, and palladium—refined to meet international benchmarks of quality and liquidity. This guide serves as a comprehensive overview of the definitions, delivery mechanisms, and regulatory compliance standards that govern bullion transactions within the world-class trading hubs of Dubai and London.

1. Defining Bullion: Standards of Purity and Quality

In the context of professional trading, "Bullion" is strictly defined as precious metals in the form of bars or coins. These assets are not valued by their aesthetic or numismatic appeal, but rather by their intrinsic metal content and weight. Trading occurs in internationally recognized units, including ounces, kilograms, and the traditional "ten tolas" unit prevalent in South Asian and Middle Eastern markets.

To be categorized as institutional-grade bullion, the metal must adhere to rigorous purity mandates. Unless otherwise specified by the company, all assets must satisfy the following certification standards:

• Dubai Good Delivery (DGD): Established by the Dubai Multi Commodities Centre (DMCC), this standard is the international benchmark for quality and technical specifications for gold and silver. It ensures that the bars are of the highest integrity and are accepted globally.

• London Good Delivery (LGD): Curated by the London Bullion Market Association (LBMA), this is perhaps the most recognized standard worldwide. A bar meeting LGD standards is guaranteed to have a specific fineness (usually 999.9, 999.0 or 995 for gold) and must be produced by an accredited refiner.

By adhering to these dual standards, the company ensures that the bullion held within client accounts possesses the "high quality" designation required for seamless liquidation and global portability.

2. The Physical Redemption Process

While many investors utilize bullion accounts for price exposure and wealth preservation without ever taking physical possession, the right to Physical Delivery remains a cornerstone of the investment agreement. The transition from a digital or "paper" position to a physical asset is a structured process managed through the seller’s investment platforms.

Account Verification and Request

Physical distribution is never automated; it is initiated solely upon the explicit request of the client. This request must be funneled through an approved bullion account that has cleared all internal compliance and Know Your Customer (KYC) protocols. Once the request is lodged via the platform, the company begins the logistical transition from a credit balance to a tangible asset.

Determination of Specifics

Because "Bullion" is a broad category, the specificities of the physical asset must be defined at the point of redemption. This includes:

1. Bullion Type: Whether the client receives minted coins, cast bars, or specific denominations (e.g., 1kg bars vs. 10 tola bars).

2. Location: Identification of the secure vaulting or collection point.

3. Ancillary Costs: The physical redemption process involves costs beyond the spot price of the metal. These include commodity shipping fees (for transit between vaults) and physical redemption fees (premium charges for the fabrication and handling of physical units).

These terms are governed by the overarching agreement signed between the company and the client, ensuring transparency in pricing and logistics.

3. Logistical Obligations and Collection Timelines

Efficiency and security are paramount in the trade of high-value commodities. Once a physical delivery order has been processed and the bullion is prepared for handover, the client assumes a set of logistical responsibilities.

The 15-Day Collection Rule

All physical bullion must be collected from the designated Dubai office within a strict window of fifteen (15) calendar days following the notification of availability. This timeframe is essential for maintaining the security integrity of the premises and managing the high-turnover nature of precious metal inventory.

Consequences of Non-Compliance

Failure to collect the assets within this two-week window may result in:

• Order Cancellation: The transaction may be voided, and the metal returned to general inventory.

• Scrutiny and Re-Verification: Orders that linger beyond the deadline may be subject to additional security audits or administrative reviews to ensure the legitimacy of the delay.

Investors are encouraged to coordinate their logistics (including armored transport, if necessary) well in advance of the delivery window.

4. Contingencies: Availability and Price Volatility

The precious metals market is characterized by rapid price fluctuations and occasional supply chain constraints. To protect both the integrity of the market and the interests of the firm, specific contingency clauses are in place.

• Product Non-Availability: In instances where a specific brand or weight of bullion is unavailable due to market shortages, the company reserves the right to cancel the order. In such cases, a full refund of the transaction amount is issued to the client.

• Brand Substitution: Alternatively, if the exact requested brand is out of stock, the company may offer an equivalent product of the same purity and weight. This "Brand Change" can only occur with the explicit consent of the buyer, ensuring that the client remains in control of their specific investment preferences.

• Price Adjustments: Should a significant price change occur during the processing window that renders the transaction unfeasible under previous terms, the order may be cancelled and the funds returned, allowing the client to re-enter the market at current rates.

5. Regulatory Governance and Legal Framework

All operations, trades, and custodial services provided are conducted under the watchful eye of UAE regulatory bodies. This ensures a "clean" supply chain and protects the investor from fraud or illicit trading practices.

Department of Economic Development (DED)

The DED of the Dubai Government provides the overarching legal framework for commercial activity. All transactions are bound by the consumer protection laws and commercial codes established by this department, ensuring that the company operates with a valid license and adheres to ethical business standards.

Dubai Multi Commodities Centre (DMCC)

As the leading trade hub for precious metals, the DMCC sets the specific "Rules of Engagement" for bullion trading. This includes anti-money laundering (AML) protocols, "Responsible Sourcing" mandates, and the technical standards for the DGD list. By operating under DMCC regulations, the company guarantees that its bullion is sourced from conflict-free zones and refined by entities that meet the highest environmental and social governance (ESG) criteria.

Summary of Engagement Terms

For the convenience of the investor, the following table summarizes the core operational requirements for bullion transactions:

Investing in bullion through an approved professional platform offers unparalleled security and access to the world’s most stable stores of value. However, the transition from investment capital to physical gold or silver requires a disciplined adherence to the protocols mentioned above. From understanding the nuances of LGD/DGD standards to ensuring timely collection at the Dubai office, investors are expected to engage with these procedures to ensure the safety and legality of their assets.

The synergy between the Department of Economic Development and the DMCC ensures that Dubai remains a "City of Gold" built on a foundation of transparency, quality, and rigorous legal oversight.