I represent a client who owns a gold mine in Nevada, USA. In order to expand the mining operations, a forward gold contract is being offered. Gold will be sold at $400(USD) per troy ounce. The minimum purchase will be 12.5 KG (402 troy ounces) at $160,800(USD). The maximum purchase will be 167,200 troy ounces at $66,880,000(USD).
These will be 12 month contracts. At that time the investor has the option of accepting the delivery of the gold or selling the contracts back to the mine owner at $600 per troy ounce. This will guarantee the investor at least 50% profit on investment for the 12 month period.
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