Who this guide is for
Corporates and institutions holding precious metal as an operational asset, balance-sheet item, or recovered estate. Typical readers run treasury at a manufacturer with platinum-group catalyst stock, sit on the finance team of a jeweller winding down a product line, or manage an insolvent estate that includes bullion, scrap, or industrial filings.
The retail playbook — courier the bar to a refiner, accept the spot less a margin — does not survive contact with corporate procurement, audit, or AML obligations. This guide covers the version that does.
Why corporate liquidation is different
Four things change once the seller is a company rather than an individual:
- Audit trail. Every step of the sale will be reviewed by finance, audit, and potentially counsel. The price, the assay, the counterparty, and the funds movement all need documentary support.
- AML and sanctions. The buyer must run KYB on the seller, screen directors and UBOs, and document source of goods. A sale that cannot survive an MLRO review is not a sale.
- Logistics risk. Five kilos can fit in a pocket. Five hundred kilos cannot. Insurance, secure transport, and chain of custody are real cost lines, not afterthoughts.
- Tax treatment. VAT, capital allowances, and recovery treatment all turn on form and counterparty. The sale needs to be structured before the metal moves.
The seven-step process
- 01
Inventory
List what you hold: metal, form (bullion, coin, jewellery stock, scrap, catalyst, filings), estimated gross weight, location, and any existing assay or refiner statements.
- 02
Enquiry and indicative valuation
Share the inventory with a buyer. Expect an indicative price at the prevailing LBMA benchmark less a clearly stated refining and handling margin.
- 03
KYB and source-of-goods pack
Provide entity documents, UBO information, and evidence of how the metal came to be on your balance sheet (invoices, manufacturing records, court orders for insolvency cases).
- 04
Sampling and assay
On-site or at an accredited laboratory. For mixed material, sampling protocol matters more than the headline number — agree it in writing first.
- 05
Purchase agreement
A signed contract covers price formula, assay tolerance, settlement timing, Incoterms (FCA or EXW are the typical seller-friendly options), and dispute resolution.
- 06
Collection and refining
Insured secure transport under the agreed Incoterm, lodged with an LBMA-accredited refiner. You should receive a refiner statement showing fine weight.
- 07
Settlement
Funds wire to the entity bank account on file, typically within two business days of the final refiner statement. Reconcile against the contract price formula.
Documented source of goods
This is the single biggest differentiator between a retail and a corporate sale. A compliant buyer cannot take title to metal whose origin is not documented; an auditor cannot sign off on a disposal that lacks the same evidence on the other side of the trade.
A workable source-of-goods pack normally includes:
- Acquisition evidence. Invoices from the original supplier or refiner, internal manufacturing records, or — for recovered estates — the court order or appointment.
- Custody history. Where the metal has been held since acquisition: own vault, third-party depository, or operational site.
- Prior assays or refiner statements. If the metal has been refined before, the statement evidences fine weight and prior chain of custody.
- Beneficial-ownership confirmation. A board minute or equivalent confirming the entity owns the metal free of third-party claims.
If any of these are weak — a common situation for legacy holdings or estates — say so up front. A buyer with a serious compliance function will help you reconstruct what is missing rather than walking away; one that does not ask is the buyer to be worried about.
How price is formed
The price of physical metal is built up from a public benchmark. For gold and silver this is the LBMA Gold Price and LBMA Silver Price, fixed in London twice and once daily respectively; for platinum and palladium, the LBMA PM fix.
From the benchmark, deduct:
- Refining charge. A per-kilo cost set by the refiner, depending on form and contamination. Bullion settles thinner than catalyst.
- Handling and assay. Sampling, laboratory testing, and administration. For large lots this should be a flat fee, not a percentage.
- Counterparty margin. The buyer's spread for taking price risk between purchase and refining.
Insist on seeing the formula, not just the net number. "LBMA AM minus refining at £X/kg minus margin of Y%" is a structure you can take to audit; "we'll give you Z" is not.
Logistics, insurance, and chain of custody
Three Incoterms cover most corporate sales:
- EXW (Ex Works). Buyer collects from your site. Risk transfers at the door. Simplest for the seller; the buyer carries transit exposure.
- FCA (Free Carrier). You hand the metal to a named carrier at a named place. Common for shipments going through an airport or secure-transport hub.
- DAP (Delivered at Place). Seller delivers to the refiner. Rare for corporate sellers; only sensible if you already run a logistics function.
Whichever Incoterm applies, the metal should never leave a documented chain of custody. Sealed and numbered containers, signed handover at each transfer, and a single insurance certificate covering door-to-refiner are the baseline.
Settlement and tax considerations
Investment gold is VAT-exempt in the UK and EU under the Gold Directive; silver, platinum, and palladium are generally standard-rated. Industrial and scrap material can fall under domestic reverse-charge rules — your finance team or VAT advisor should confirm before the contract is signed, not after.
Funds settle by SWIFT or SEPA wire to the entity's bank account on file with the buyer. Cash settlement of corporate sales is not standard practice; if a buyer offers it, treat that as a red flag rather than a convenience.
Common pitfalls
- Accepting a single net quote. Without the formula you cannot reconcile, audit, or compare offers.
- Moving metal before contracts are signed. Transit without a contract leaves the seller carrying risk for material no one has yet agreed to buy.
- Skipping the sampling protocol on mixed material. The argument is always about the sample, never about the spot price.
- Working with a buyer who does not ask for source of goods. If they do not ask, their compliance function does not exist, and the trade will not survive your audit.
- Confusing scrap price with refined price. A jeweller quoting "scrap" against an LBMA-benchmark buyer is comparing different things.
Pre-sale checklist
- ☐ Inventory complete: metal, form, gross weight, location.
- ☐ Source-of-goods pack assembled.
- ☐ KYB pack ready: certificate of incorporation, UBOs, directors' IDs.
- ☐ Internal authority confirmed: board minute or delegated authority to sell.
- ☐ VAT treatment confirmed with finance or VAT advisor.
- ☐ Bank account for settlement on file with buyer.
- ☐ Price formula agreed in writing — not a net number.
- ☐ Incoterm and insurance arrangements documented.
- ☐ Sampling and assay protocol agreed for mixed material.
FAQ
How long does a corporate sale usually take?
From first enquiry to funds on account: typically two to four weeks for documented bullion, four to eight for mixed or industrial material that needs sampling and refining. The compliance work tends to dominate the timeline, not the metal movement.
Can we sell without disclosing the source?
Not with a compliant counterparty. A buyer that does not ask is not a buyer your audit committee will be comfortable with.
What if the metal is held abroad?
Cross-border sales are routine. The buyer handles import or export licensing, and the Incoterm sets where seller risk ends. Plan an extra few days for customs clearance.
Is there a minimum size?
For us, no formal minimum, but the compliance and logistics overhead means the economics work best from a few kilos of fine gold equivalent upwards.
Next step
Ready to scope a sale?
Share an inventory and we will come back with an indicative valuation, usually the same working day. No obligation.