International Gold Trading Rooted in Integrity
SGM New Energy is an international gold trading company with a strong operational presence in Uganda, specialising in the supply of investment-grade African gold to qualified international buyers. With more than 21 years of industry experience, we have established ourselves as a trusted partner for refineries, bullion dealers, institutional investors, and wholesale buyers seeking secure and professionally managed transactions.
Our business is built on professionalism, integrity, and strict adherence to internationally recognised trade practices. Every transaction is conducted with careful planning, proper contractual documentation, and internationally accepted banking procedures, ensuring that qualified buyers receive a reliable and efficient service from contract execution through final delivery.
Why Buyers Trust Us
Internationally Accepted BankingSWIFT MT760 / MT542 instruments from Top 100 rated banks.
Formal ContractsEvery transaction governed by a signed Sales and Purchase Agreement.
Independent AssayFinal payment only after independent refinery assay confirmation.
CIP DeliveryWe arrange and insure transportation to your agreed destination.
The Reality of the African Gold Market
The African gold market presents exceptional opportunities, but it has also become one of the most targeted industries for fraud. Many buyers suffer substantial financial losses because they are attracted by unrealistic discounts and promises of immediate profits.
Legitimate gold suppliers do not sell precious metals at unrealistic prices. Fraudulent sellers frequently advertise discounts that bear no relation to international market values, creating false expectations among buyers. As a result, genuine suppliers are often overlooked in favour of offers that ultimately prove to be fraudulent.
Successful gold trading is founded on realistic pricing, proper due diligence, secure banking instruments, and professionally structured contracts. Buyers should always verify their counterparties, understand the transaction process, and avoid any offer that appears significantly below recognised international market pricing.
Our Gold Supply Offer
SGM New Energy supplies gold exclusively on a CIP (Carriage and Insurance Paid) basis in accordance with Incoterms® 2020. Under CIP terms, the Seller arranges and pays for transportation and insurance to the agreed international destination — providing significantly greater protection than CIF, which applies primarily to sea freight. As our consignments are transported by air, CIP is the internationally recognised and appropriate Incoterm for these transactions.
| Term | Detail |
|---|---|
| Accepted Security | Irrevocable SBLC (SWIFT MT760) or SWIFT MT542, issued by a Top 100 international bank with an AAA credit rating, acceptable to the Seller |
| Excluded Instruments | Deutsche Bank instruments are not accepted |
| Delivery Basis | CIP — Seller arranges and pays for air freight and insurance to the agreed destination |
| Assay | Independent refinery assay conducted upon delivery; final payment based on assay result |
| Contract | Sales and Purchase Agreement (SPA) executed prior to shipment |
Destinations subject to compliance, logistics, and risk assessment.
Transaction Process
A structured, transparent process from LOI to final payment
Buyer Qualification
Buyer submits signed LOI and bank confirmation letter confirming financial capacity and ability to issue the required banking instrument.
Contract Execution
Upon qualification, a formal Sales and Purchase Agreement is negotiated and executed by both parties, setting out all commercial terms.
Instrument Issuance
Buyer's bank issues the agreed SBLC (SWIFT MT760) or SWIFT MT542. Seller verifies and accepts the instrument prior to shipment.
Delivery & Payment
Gold is shipped CIP to the agreed destination. Following independent assay, payment is effected by SWIFT MT103 against the assay report and commercial invoice.
Buyer Qualification Requirements
To protect all parties and ensure that negotiations proceed only with financially qualified buyers, the following documentation is required before entering into formal commercial discussions:
Signed Letter of Intent (LOI)
A signed LOI clearly stating the buyer's intention to purchase, the proposed quantity, and the preferred delivery destination.
Official Bank Confirmation Letter
Issued directly by the buyer's bank confirming: (1) that the buyer has sufficient financial capacity to complete the proposed transaction, and (2) that the bank is willing, ready, and able to issue an irrevocable SBLC (SWIFT MT760) or SWIFT MT542, subject to agreed commercial terms.
Banking Instruments Accepted
Irrevocable SBLC — SWIFT MT760
Issued by a Top 100 rated international bank with AAA credit rating, acceptable to the Seller.
SWIFT MT542
Delivery vs. Free — accepted as an alternative banking instrument subject to agreed commercial terms.
Minimum USD 50,000,000
The banking instrument must cover the full value of the agreed transaction at the contractual price.
Deutsche Bank — Not Accepted
Instruments issued by Deutsche Bank are excluded from our accepted instrument list.
Ready to Begin Your Gold Transaction?
Submit your Letter of Intent and bank confirmation to initiate the qualification process. Our team will respond promptly to all qualified enquiries.
Confidential · Secure · Professional
Frequently Asked Questions
Whether you are an experienced bullion buyer or entering the international gold market for the first time, we understand that security, compliance, and risk management are your primary concerns. Below are answers to the questions we are most frequently asked by prospective buyers. Should you require any additional information, our team will be pleased to assist.
Yes. SGM New Energy (Pty) Ltd is a legally registered company.
To establish confidence between both parties, we exchange our respective Company Information Sheets (CIS) following execution of the Sales and Purchase Agreement (SPA). The CIS includes the company's registration details, registered office address, details of the authorised representative, director or CEO, company registration documents, and legal representative information.
The Buyer will likewise be required to provide its CIS together with proof that it is legally authorised to import gold into its destination country, including a valid gold import licence where applicable.
The Seller assumes virtually all of the commercial and financial risk throughout the transaction.
Prior to receiving payment, the Seller is responsible for government taxes and duties, export permits, export documentation, insurance, secure logistics, and international transportation by private aircraft. The value at risk substantially exceeds the value of the gold shipment itself.
The SBLC (SWIFT MT760) or SWIFT MT542 provides the Seller with financial security should the Buyer fail to honour its contractual obligations after the Seller has committed significant resources to the transaction.
Your protection is provided through the legally binding Sales and Purchase Agreement.
The SPA contains clearly defined performance obligations and remedies for both parties. If the Seller fails to perform within the agreed contractual timeframe, the Buyer has the contractual right to cancel the agreement, instruct its bank to withdraw the banking instrument where applicable, and enforce the contractual penalty provisions agreed by both parties.
The agreement protects both the Buyer and the Seller equally and ensures that each party remains fully accountable for its obligations.
If the Seller fails to fulfil its contractual obligations within the agreed delivery period, the Buyer may exercise the remedies provided under the Sales and Purchase Agreement.
These include cancellation of the transaction, withdrawal of the banking instrument where applicable, and enforcement of the agreed contractual penalty provisions.
Yes.
Should the Seller fail to perform in accordance with the agreed contractual terms, the Buyer may instruct its issuing bank to cancel or withdraw the banking instrument in accordance with the provisions of the Sales and Purchase Agreement and applicable banking procedures.
No.
We do not issue a 2% Performance Bond because it serves no commercial purpose within this transaction structure.
Performance Bonds are commonly used in construction and engineering projects where the project owner pays money to a contractor before any work is performed. The bond protects the project owner against the loss of those advance funds.
In our transactions, the Buyer does not make any advance payment to the Seller. The Buyer's only initial cost is the bank's issuance fee for the banking instrument. Furthermore, the funds securing the instrument remain in the Buyer's own bank account for the duration of the instrument, where they continue to earn interest in accordance with the Buyer's banking arrangements.
By contrast, the Seller assumes the commercial risk by paying government taxes and export costs, arranging insurance, securing all export documentation, and transporting the shipment internationally before receiving payment.
For additional protection, the Sales and Purchase Agreement contains reciprocal penalty provisions that protect both parties in the event of contractual default.
Our deliveries are conducted by air rather than sea.
Under Incoterms® 2020, CIP (Carriage and Insurance Paid) is the internationally recognised rule for air cargo, whereas CIF (Cost, Insurance and Freight) is intended solely for sea and inland waterway transport.
CIP also provides a clearer allocation of responsibilities and insurance obligations, making it the most appropriate and secure delivery method for international gold shipments.
The Seller bears all costs associated with the shipment from Uganda to the agreed international destination airport.
This includes export permits, government taxes, export documentation, insurance, secure logistics, and international transportation.
The Buyer is responsible for all costs from arrival at the destination airport.
These include customs clearance, import duties where applicable, secure transportation to the agreed refinery, refinery charges, assay fees, security, storage if required, and all other expenses incurred until final payment has been completed.
Prior to shipment, the Buyer will receive all relevant export documentation required for the transaction, including, where applicable:
- Commercial Invoice
- Packing List
- Export Permit
- Certificate of Origin
- Other regulatory export documentation required by the exporting authorities
Yes.
Once the Sales and Purchase Agreement has been executed, the required due diligence documentation has been exchanged, and the Buyer's bank confirmation letter has been received, the Buyer is welcome to travel to Uganda to inspect the gold consignment.
The Buyer shall be responsible for all costs associated with the inspection visit for both parties, including return air tickets, accommodation, meals, local transportation, and any related travel expenses incurred during the inspection.
Ownership transfers only after full payment has been received by the Seller and the cleared funds have been irrevocably credited to the Seller's nominated bank account.
Until that time, legal ownership of the gold remains with the Seller.
The final assay is conducted in the Buyer's chosen destination country at a mutually agreed internationally recognised refinery.
The refinery's final assay report determines the final weight, purity, and settlement value of the gold.
Before commencing formal negotiations, the Buyer must provide:
- A signed Letter of Intent (LOI)
- A letter issued directly by the Buyer's bank confirming that the Buyer has sufficient financial capacity to complete the proposed transaction
- Confirmation that the bank is willing, ready, and able to issue an irrevocable SBLC (SWIFT MT760) or SWIFT MT542 in accordance with the agreed commercial terms
Yes.
We work with legitimate brokers and authorised mandates who represent genuine buyers.
Where a broker or intermediary is acting on behalf of a Buyer, appropriate written authorisation or a valid mandate letter must be provided, or the Buyer must be introduced directly to the Seller.
Yes.
Commission structures are negotiated and agreed between the relevant parties before commencement of the transaction and are incorporated into the contractual documentation where applicable.
Yes.
We are prepared to execute NCNDAs with authorised brokers, mandates, and intermediaries where appropriate. Confidentiality and non-circumvention provisions are also incorporated into our Sales and Purchase Agreement to protect the commercial interests of all parties involved.