Traditional Bullion Market vs. Private Off-Market Sales

For those deeply involved in the traditional gold market — refineries, commodities exchanges, and institutional buyers — the idea of purchasing gold bullion at anything more than a marginal discount to spot price might seem unrealistic, if not outright suspicious. However, in the world of private off-market precious metals sales, particularly gold, significant discounts are not only real, but are considered and regarded standard practice.

Two Worlds, One Standard of Integrity

The traditional bullion market operates on well-established structures:

• Gold is purchased at volume, or near spot price, often with tiny discounts for volume.

• It is resold with a markup, plus LBMA, ensuring refineries and traders capture their margins.

• Transactions are governed by transparent, regulated markets and standardised contracts.

By contrast, the private off-market gold space follows different principles:

• Large quantities of gold (typically from direct holders or private vaults) are sold at significant discounts — 9% gross, 6% net is common in this space.

• These transactions do not follow commodity exchange practices, but instead rely on private agreements, vetted buyers, and structured financial instruments.

• The market is discreet, with participants prioritising enhanced security, greater privacy of confidentiality and the value of direct relationships.

The Confusion? Traditional Buyers Won't Believe Vetted Genuine Off-Market Offers Are Real

One of the biggest challenges in this industry, is the apparent disconnect between these two worlds. For example: When buyers from traditional gold backgrounds are presented with an opportunity to acquire gold at minus 6% net, their immediate response is often scepticism:

• “That kind of discount doesn’t exist.”

• “If this were real, we would already know about it.”

• “This must be a scam.”

• “Too good to be true”.

Given the nature of this industry, maintaining a healthy measure of scepticism is always crucial in rejecting questionable offers with obvious red flags. However, it is also important to note that, in reality, these types of discounts are standard practice within legitimate private transactions. The reason traditional buyers often aren’t familiar with such practices, is either because they haven't previously operated in off-market channels — or, and as is most often the case, because their experience have been shaped by encounters with bad actors who claim to possess gold, but ultimately fail to deliver.

Why the Private Off-Market Gold Space Exists

Not all gold owners prefer, nor want, to sell through exchanges or refineries at spot price. Some require quick liquidity, others move and deal with large volumes that exceed traditional market capacities, and some prefer to prioritise confidential, direct transactions over publicly documented sales. Private off-market gold transactions provide a solution, offering significant discounts in exchange for prompt, well-structured, and compliant payments.

How Traditional Buyers Can Adapt

For refineries, institutions, and professional gold traders looking to expand beyond conventional sourcing, understanding off-market transactions is key.

Here’s how one can engage effectively:

• Familiarise yourself with private transaction protocols. These are different from exchange-based deals, but can be equally as legitimate when handled correctly.

  
  

• Work with verified mandates and sellers. Off-market gold transactions involve layers of verification and compliance, and working with experienced professionals ensures security and reliability.

  
  

• Be open to different financial structures. Instruments such as SBLCs, DLCs, Administrative Blocked Funds and conditional MT103s are common in these deals.

  
  

• Recognise that price is a function of market dynamics. Just because spot-price deals dominate the traditional space, this doesn't mean that larger discounts don’t exist elsewhere.

Conclusion

The frustration within the industry does not stem from the absence of off-market gold transactions - but rather from the fact that traditional gold professionals often lack the right, comprehensive knowledge to identify, recognise or engage with them correctly. By gaining the understanding of the differences in structure, pricing, and procedures, both sides can uncover new opportunities in a global bullion market that extends far beyond the visible exchanges.

If you are a refinery, institutional buyer, or trader and wish to explore this space, contact the team at Everest Global Capital. These off-market opportunities are genuine — you just need access through the proper, verified channels.

Contact the team