SELLER VERIFICATION · SCAM PREVENTION
VERIFY GOLD SELLERS
AVOID AFRICAN SCAMS
The African gold market attracts both legitimate exporters and scammers. This 5-step verification guide protects buyers from fraud by ensuring sellers hold valid licenses, third-party assay certificates, and verifiable export histories.
DGSM License Check
Assay Verification
Business Registration
Export History
Escrow Protection
COMMON GOLD SCAMS IN AFRICA
Red flags include: sellers demanding 100% upfront payment via wire transfer, refusing third-party assay tests, no physical office address, unverifiable export licenses, pressure to close deals quickly, prices significantly below LBMA spot rates, and requests for payment through unofficial channels. Always use the 5-step verification process below.
VERIFICATION PROCESS
5-STEP SELLER
VERIFICATION
STEP 1
Request Export License Number
Any legitimate gold seller in Uganda must hold a valid export license from the Directorate of Geological Survey and Mines (DGSM). Request the license number and verify it directly with the Ministry of Energy and Mineral Development.
✓ VERIFY WITH
Ministry of Energy & Mineral Development, Uganda
⚠️ RED FLAGS
- • Seller refuses to provide license number
- • License expired or unverifiable
- • No physical office address
STEP 2
Demand Third-Party Assay Certificate
Legitimate sellers provide assay certificates from recognized laboratories (Simba Assay Laboratory, Uganda National Bureau of Standards, or PMMC in Ghana). The certificate must show purity percentage, weight, and serial numbers for refined bars.
✓ VERIFY WITH
Simba Assay Laboratory / UNBS / PMMC
⚠️ RED FLAGS
- • Self-declared purity without lab cert
- • Refuses third-party testing
- • Assay older than 30 days
STEP 3
Verify Business Registration
Request Certificate of Incorporation from Uganda Registration Services Bureau (URSB), Tax Identification Number (TIN), and physical office address. Legitimate dealers have verifiable offices, listed business details, and official signage.
✓ VERIFY WITH
Uganda Registration Services Bureau (URSB)
⚠️ RED FLAGS
- • No business registration
- • Only WhatsApp contact (no office)
- • Unwilling to share TIN
STEP 4
Review Export Documentation History
Request proof of previous shipments, client references, and invoices from completed deals. Trustworthy dealers gladly share success stories and allow you to speak with past clients or visit their operations.
✓ VERIFY WITH
Previous client references / Export records
⚠️ RED FLAGS
- • No export history
- • Refuses client references
- • Vague shipping terms
STEP 5
Insist on Escrow for Large Orders
For transactions over $100,000, use recognized escrow services or precious metals trade platforms. Legitimate sellers accept escrow; scammers demand upfront wire transfers.
✓ VERIFY WITH
Escrow.com / Precious metals trade platforms
⚠️ RED FLAGS
- • Demands 100% upfront payment
- • No escrow option
- • Pressure to close quickly
REGULATORY AUTHORITIES
AUTHORIZED
VERIFICATION BODIES
| AUTHORITY | COUNTRY | ROLE | WEBSITE |
|---|---|---|---|
| Directorate of Geological Survey and Mines (DGSM) | Uganda | Export licensing | Ministry of Energy & Mineral Development |
| Minerals Commission | Ghana | Export licensing | mincom.gov.gh |
| Mining Commission | Tanzania | Export licensing | Mining Authority Tanzania |
| Simba Assay Laboratory | Uganda | Purity verification | Third-party assayer |
| PMMC (Precious Minerals Marketing Company) | Ghana | Assay & valuation | pmmc.com.gh |
| Uganda Revenue Authority (URA) | Uganda | Customs clearance | ura.go.ug |
DOWNLOADABLE CHECKLIST
SELLER VERIFICATION
Checklist (PDF).
Download our comprehensive seller verification checklist. Print it and use it during every gold purchase negotiation. Includes license verification contacts, assay requirements, and red flag indicators.
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