African mining scam

[Number Six]

I've been getting emails like this one today:

Dear Sir,

We can supply raw gold and rough diamond from Ghana and Guinea leone at competitive prices.Our procedure is FOB Ghana and Guinea leone, whereby buyer and seller meet at seller's location and sign SPA contract before closing deal at seller's location.Our local price for gold is $39,000 per kilo and our gold is +22 carats and 96% purity.

However, if you want us to deliver on CIF procedure, then you must be ready to provide us with an irrevocable/open BLC and we will deliver our gold to you on CIF basis.Our payment terms for CIF is via bank to bank wire transfer after refinery and assay in buyers location.

Looking forward to your kind and timely response.

Best regards,



MR MANYATTA CL,
21 CITE GRAND YOFF
DAKAR-SENEGAL /+221-775-710-542


I ran this by a couple of coin pals who are not lawyers.

Comments:

"Of course its a scam, but I am wondering how. You know its a scam by the fungibility of the product, there is no need to find a buyer essentially.

"Its not a bank account scam per se. I am wondering if its a scam concerning the letter of credit, meaning the terms are loose enough you can never retrieve the money, or if they will basically kidnap you when you go to sign the documents at the sellers location, (in their country). Some rich guy wishing to buy gold would be a good kidnapping target I believe. A third possiblity would be the letter of credit would "fall through" and they would need a wire before delivery. I am curious intellectually as to where the scam part of this deal is falling. Please let us know if you ever find out."

"It is the mention of diamond rough that caught my eye. Unless the laws have changed, possession of diamond rough in that part of Africa is anything from a prison to worse. The 'Companies' got the laws in exchange for high cost mining and processing rights from the governments."

Where does this scam fit relative to the others?

[notorial dissent]

They're looking for either the BLC, or the wire transfer for either of which you would get nothing since they are insisting on cash up front.

Real, legitimate precious metal/stone dealers do not send unsolicited offers out, they don't need to.

I can't really imagine they actually get anyone taking them up on this, but you never know, some people really are dumbern' the rocks other people are trying to sell them.

[Howard]

My uncle has been getting spam of such kind for quite a while. All that you're 9999999 user who opened this page, or google wants u to work for us and we're ready to give $$$ and that stuff. A really good laugh at this stuff he had. but now he doesn't know what to do with his email which is probably open for spamers

[Kestrel]

I've been getting emails like this one today:

Dear Sir,

We can supply raw gold and rough diamond from Ghana and Guinea leone at competitive prices.Our procedure is FOB Ghana and Guinea leone, whereby buyer and seller meet at seller's location and sign SPA contract before closing deal at seller's location.Our local price for gold is $39,000 per kilo and our gold is +22 carats and 96% purity.

You know its a scam because the math doesn't check.

1) If I understand correctly, pure gold is 24 carat. That means 96% pure would be 23 carats, not 22. 22 carats is 91.6% pure.

2) To price gold which is less than 24 carat, you determine the purity of the gold then divide by 24 and multiply the result by the current bullion price. So 22 carat gold would be worth 22/24 of the bullion price.

3) There are 35.273 ounces in a kilogram. Friday's market price for gold is $1660 per ounce.

4) $1660 x 35.273 x 22/24 = $53,673.75 per kilo. If the gold he's selling is really 96% pure the equation is: $1660 x 35.273 x 23/24 = $56,113.46 per kilo.

5) Why the hell would ANYONE sell gold for less than 73% of its current market price? Buy it for that kind of discount, sure, but not sell it that way. This is either a complete scam or they're recruiting suckers for a fencing operation. Either way, this is an "opportunity" not worth your time.

[notorial dissent]

More to the point, why would anyone selling "bulk" gold and diamonds be selling it over the internet via random shot email, I mean, come on, really, what of this DOESN'T stink to high heaven of scam just on the surface? If for no other reason of who, as a random receiver on the internet, is going to have the pocket change to purchase a kilo of gold, or whatever the selling unit of diamonds is, no matter what the carat weight. This resides directly in the realm of pure fantasy, even among scams.

[Arthur Rubin]

3) There are 35.273 ounces in a kilogram.

I don't think that's correct.

There are approximately 32.1507466 troy oz in 1 kg.

Still, that only reduces the price per kilo by about 10%.

[Kestrel]

3) There are 35.273 ounces in a kilogram.

I don't think that's correct.

There are approximately 32.1507466 troy oz in 1 kg.

Still, that only reduces the price per kilo by about 10%.

Ah yes. You are quite right in pointing out that gold and silver are measured in Troy ounces, which are slightly heavier than common ounces.

The math still screams "scam artist."

[xanadu]

I don't see scam here.
What I see is stolen goods. Hotter than ( use your own four letter word ).
It has all the trappings. Selling below market value, business transaction our location, etc.
If your looking to buy cheap diamonds or gold, might be good deal.
However, be sure you are well armed and bring plenty of backup.
I suggest fully automatic weapons with maybe a rocket launcher or two for good measure.

[notorial dissent]

The scam is simpler than that, they don’t have anything to sell in the first place, and that being the whole point. Why go to all the trouble to steal something when you can sell something you don’t have to someone too stupid to realize you couldn’t have it to sell in the first place. They get the money up front, and you get bupkis.