Gold Purchase with Bank Guarantee

Kalib Loy • Feb 12, 2023

Case Study: Gold Purchase with Bank Guarantee

A Journey to Find the Perfect Gold: How Bluhe Shire Helped a Credit Union.


For centuries, gold has been a symbol of wealth and prosperity. It is a safe haven investment that protects against economic uncertainties and currency fluctuations. No wonder many financial institutions, including credit unions, are eager to add gold to their ledger. However, finding high-quality gold and ensuring a fair price can be a challenge, especially for credit unions who may lack the expertise and resources to navigate the complex process. This is where Bluhe Shire, a private trust with extensive experience in the gold industry, comes in.


Bluhe Shire was approached by a credit union looking to expand their portfolio with gold, and the trust was more than happy to help. With their expertise in evaluating gold sellers and ensuring fair prices, the credit union had peace of mind that they were in good hands. To further protect their interests, the credit union provided their own bank guarantee, giving them added security and confidence in the transaction.


Bluhe Shire quickly went to work, identifying a reputable gold mine in Canada and negotiating the terms of the sale. They carefully reviewed the price, delivery details, and any fees or taxes to ensure that the credit union was getting the best deal possible. The credit union made payment through a secure method and received the gold, which was thoroughly inspected for quality and quantity. Once the gold met the credit union's standards, it was stored in a secure location as determined by the credit union.


Throughout the process, Bluhe Shire made sure that all relevant laws and regulations were being followed, protecting the credit union from any potential fraud or unscrupulous sellers. The credit union was able to purchase the gold with confidence, knowing that Bluhe Shire was there to guide them every step of the way.


In conclusion, the journey to finding the perfect gold for a credit union was a success thanks to Bluhe Shire's expertise and commitment to the credit union's best interests. Whether you are a credit union or an individual looking to invest in gold, Bluhe Shire is there to help you navigate the process and find the perfect gold for your needs.


Overall Performance

Starting with the cost of the gold, which was $4,500,000 and 8% under market value, we can calculate the market value of the gold as follows:


$4,500,000 / (1 - 0.08) = $4,848,148


So, the market value of the gold was $4,848,148, and the credit union was able to purchase it for $4,500,000, which is 8% less, saving them $348,148.


Next, let's consider the 2% in total fees for the transaction. To calculate the cost of the fees, we can multiply the cost of the gold by 2%:


$4,500,000 * 0.02 = $90,000


So, the cost of the fees was $90,000.


Finally, to calculate the profit for the credit union, we can subtract the cost of the fees from the savings they received by purchasing the gold 8% under market value:

$348,148 - $90,000 = $258,148



So, the credit union's profit from this transaction was $258,148.


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