How much does it cost to refine 100KG of gold bullion?

Sorry for this basic question, but I need to know the answer to this question for a business calculation:

What would an average cost be for refining 100KG of gold bullion be in the Middle East?

Also, what would an acceptable discount on LBMA price be, for the purchase of 100KG Gold bullion (99.95%) FOB SE Asia? Is 3% net to the buyer too small?

Thanks in advance for your help on this...

You only need to post your question once, it will be seen, and answered when the right person sees it.

BillyJones said:

Sorry for this basic question, but I need to know the answer to this question for a business calculation:

What would an average cost be for refining 100KG of gold bullion be in the Middle East?

Also, what would an acceptable discount on LBMA price be, for the purchase of 100KG Gold bullion (99.95%) FOB SE Asia? Is 3% net to the buyer too small?

Thanks in advance for your help on this...

Click to expand...

There's no real definitive answer to your question due to the many variables that can apply.
What exactly are you going to refine?
Which method will you use?
Cost of labour and materials?
Cost of investment if setting up a new venture?

Bullion rarely changes hands at a discount,a premium yes or at best spot price.

Be very careful if somebody offers you gold at discount. Mainly if it is not your area of expertise or your usual business. There is a perfect reason that you cant see discounted car engines for sale in local bakery shop.

Only people experiencing a hardship of some sorts will sell gold at discount. If it looks too good to be truth most of the times it isn't truth.

nickvc said:

BillyJones said:

Sorry for this basic question, but I need to know the answer to this question for a business calculation:

What would an average cost be for refining 100KG of gold bullion be in the Middle East?

Also, what would an acceptable discount on LBMA price be, for the purchase of 100KG Gold bullion (99.95%) FOB SE Asia? Is 3% net to the buyer too small?

Thanks in advance for your help on this...

Click to expand...

There's no real definitive answer to your question due to the many variables that can apply.
What exactly are you going to refine?
Which method will you use?
Cost of labour and materials?
Cost of investment if setting up a new venture?

Bullion rarely changes hands at a discount,a premium yes or at best spot price.

Click to expand...

I have been quoted vastly differing prices. At one end of the spectrum, $250 per kilo in Asia and at the other end, 1% of the spot price (i.e. $5,000 per kilo). Can this be explained? It seems very weird.

Most of the people still do not know what are you talking about. You have to present more details.

$1000,000.57 USD. No, wait - $50.00!
The point these guys have been trying to make is illustrated by the above. With no details, any definitive price quoted at this juncture should be viewed with the greatest scepticism, as no honest estimate can be made with the parameters you have provided - many would simply take you for what they think they could get from you, as this is clearly a new field for you.
No one is holding out on you. Some of the finest human beings on this planet are here, but you must decide to trust them with details or not. If "not", i understand, but you still won't get a satisfactory answer, I'm afraid.

Some people may be cautous of providing detailed information to questions like this, because it is one way for a scammer to learn the jargon, in order to sound like a business insider when proposing ripoff deals to their uninformed marks.

Like others have already inferred, if you know enough to be able to deal in that kind of market, then you should already know all the answers. If you don't know the market, you are either a potential rip-or or rip-ee. Either way, I don't think anyone is willing to hold your hand while to transact whatever it is you imagine you can do.

eeTHr said:

Some people may be cautous of providing detailed information to questions like this, because it is one way for a scammer to learn the jargon, in order to sound like a business insider when proposing ripoff deals to their uninformed marks.

Like others have already inferred, if you know enough to be able to deal in that kind of market, then you should already know all the answers. If you don't know the market, you are either a potential rip-or or rip-ee. Either way, I don't think anyone is willing to hold your hand while to transact whatever it is you imagine you can do.

Click to expand...

Spot on, that is what I was trying to tell with my poor english. Somebody may be good car salesman but he wont sell any computer guaranteed if he knows nothing about it.
One side of this business deal will be very sorry.

What difference what it costs in Asia?

How would you get it there?

Would you get it back?

What is to keep you from being robbed in any number of ways?

BillyJones said:

Sorry for this basic question, but I need to know the answer to this question for a business calculation:

What would an average cost be for refining 100KG of gold bullion be in the Middle East?

Also, what would an acceptable discount on LBMA price be, for the purchase of 100KG Gold bullion (99.95%) FOB SE Asia? Is 3% net to the buyer too small?

Thanks in advance for your help on this...

Click to expand...

This whole smells fishy. Isn't Bullion by definition already refined to a known purity?