Bleyer

David Peers explains the process..

It's a very easy process. Buying gold and silver from the Bleyer Bullion is as easy as 1-2-3, but we have to follow the steps because we have to abide by the law. And, neither of us wants to be out of pocket so we have a strict but fair system.

I’ll talk you through it and I’ll explain why it works that way as we go along.

The first step is to say “hello? to each other – just like you would with any other purchase. When you buy a car you feel the other side out, don’t you? Well that’s what you do with us. Then we make you an offer, you mull it over and then you say “yes? or “no? – you make a deal. Well it’s exactly the same with us. You call us up and talk to a real person. Then you ask to buy or sell some gold. We make you an offer, you mull it over and then we make a deal. That’s really how it goes – simple.

The second step is payment. This is where most people start to misunderstand the process so let’s clear it all up. What you’ve got is paper money and what I’ve got is gold. You’ve got an IOU and I’ve got something of substance. Now what normally happens is that you give me something and I give you something but as you’ve only got paper money, you’re going to have to wait until it’s cleared into my account before we can actually make a deal because a contract is not struck when it is agreed but when it is paid.

So if we were to agree terms – we formed a contract – and I had to wait 7 days for your cheque to clear, then chances are that one of us is going to be out of pocket because the price changes twice a day! If you were out of pocket then you would want me to compensate you but if I was out of pocket then maybe you wouldn’t be so willing. So we can only agree a price when we have received cleared funds into our client account– it’s fair on both parties and legally, it’s the only way we can do it. In this volatile market it wouldn’t be fair to accept an offer and then wait for days for the other side to do their bit – you can’t have it both ways.

The third step is negotiation. Steps two and three can and do overlap but either way it is only on cleared funds that we can make an honest deal.

So you tell me that you want to buy some gold coins. “Well that’s easy”, I reply, “they cost so much each and I've got them in stock – how many do you want?”

You tell me your bit and the deal is struck. Next comes delivery.

Whilst all this is going on, we as bullion dealers are duty bound to conduct an exercise called Know Your Client – the KYC. This involves you proving to us that you are who you say you are. I’ll need to see some photographic ID and proof of address. I'll also want to know your bank account details. Why? Because fraud in this business is rife and because the government says so, that’s why. I don’t want to have to explain to HMRC why I didn’t perform my duty and you don't want to break the law either, do you? Do this legally – why not?

If you don’t want to do a KYC then you are asking for trouble and maybe I don’t want you as a customer. If the tables were turned would you want to buy from me? Probably not. You can’t get out of it and we can’t (and won’t!) release the goods before we have satisfied the KYC procedure. Clear?

So you’ve paid, you’ve bought and we deliver.

The goods can either be delivered to you or we can store them for you. If you take custody of the goods then you assume all the risk. If we employ a third party custodian (and we only use the best) then they assume the risk (backed by insurance with Lloyds of London) and it is their duty to protect your property for you. Actually, I have the account and contract at the vault and you benefit from my contract. It’s all down to contract law and performance and if you want to know the minute detail then call, and we'll talk.

And that's about it! Let’s not try to complicate this process by changing the rules – this is the way it works and the rules are there to guide you. Records are meant to be broken. Any questions?

How do I pay?

Starting with the fastest first, we can accept bank transfer (BACS or CHAPS) and cash. Depending on which bank you use and what type of account you have, Bank Transfer can be almost immediate – we can buy and sell pretty much there and then.

We can accept cash too but it takes time to count and the bank will charge us to accept it – the days of a free lunch are over! The bank checks for fraud, duds, damaged and it all gets counted twice. It may be fast but it’s not efficient. 

Next come debit cards. We don’t actually like debit cards because the system is full of loopholes and gives too many opportunities for fraud. If you can present a debit card then why not just call the bank or get online and do a bank transfer instead? It’s safer for you (and me!) and it’s faster too.

Finally, cheques. I know that we all like them but cheques are a problem – three problems spring to mind straight away. Firstly, the cheque clearing system. The banks tell us that it can take up to 10 days to clear a cheque. Missed the post? It takes another day. Secondly, cheques get sent back because they were filled out incorrectly and sometimes they bounce. Finally, because they take so long to clear, the price changes and we all get upset because we’ve missed the market. Cheques are archaic and slow – but we realise that the other methods are not for everyone so you will have to put up with price fluctuations if you want to pay by cheque.

How can I trust you?

We are a Limited Liability Partnership (LLP) that publically trades as Bleyer LLP and via www.bullion-dealer.co.uk . We’re VAT registered, we have offices with real staff and we pride ourselves on being squeaky clean. A back-bedroom enterprise we are not.

We’ve been a family business for the last three generations specialising in estate and wealth management. It’s a good question though and in the end, it all boils down to “whom can I trust”.

What happens if I give you my money and buy less?

Then we refund the difference. Simple. It works both ways though – what if the price went up? Then you owe us the difference so we just settle up.

Can someone tell me the difference between coins and bars?

You can talk to anyone in this office about different coins and bars – we know our business. Palladium? Platinum? Vintage coins? You name it, we know our stuff.

Would you be willing to buy gold and silver from me?

Of course! The process is the same – you send us the coins and bars and we make you an offer. Remember you give me something and we give you something. Then we either pay the money directly into your account or we send you a cheque – whatever you prefer.

Do we have to do a KYC? Can’t I just give you cash?

Er, no. Which part of this are you having trouble with? It is a statutory, legal requirement and you cannot contract outside the law. All the deals we do are in the public because we are using banks and with all the anti terrorist and anti fraud legislation, we have to perform a KYC.

What about tax? Can you tell me about tax?

We can talk all day long but legal or financial advice we cannot give. Do you want to know the tax status of a Gold Britannia? No problem! But remember that we are bullion dealers so even though we understand the tax implications of the products we sell, we can’t advise. Your circumstances are unique to you so talk to your accountant about capital gains allowances, VAT, inheritance tax, succession planning etc – that’s your business.

Can I collect from your shop?

Well we don’t actually have a shop – we have an office. Remember what we’re talking about here and its value. We store the product in a very secure vault and not on the premises. If you did want to collect from us it can be arranged but a secure courier is far safer.

And that's about it! There really isn't much more to know. Call us!

Call us on 01769 618618 for current prices and availability. Take control of your finances, get out of paper and enter the safe havens of Gold and Silver – the only real money out there.

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Disclaimer – I am a bullion dealer. I do this for a living. What is written here is for your education and should not be taken as “advice?. If you act then take some responsibility for your actions. All and everything that is written by David Peers and/or published by Bleyer LLP is subject to copyright.