Top Risks Faced by Gold Buyers

While gold itself is reliable, gold transactions aren’t without risk. Common challenges include:

• Unverified or untrustworthy sellers

• Unclear ownership or documentation

• Payment before receiving delivery

• Potential for fraud or disputes

Recognizing these risks is the first step toward protecting your interests

Essential Steps for a Safe Gold Purchase

1. Vet the Seller Thoroughly

• Only deal with sellers who have a proven track record and can provide credible documentation.

• Request to see licenses, certifications, and references.

2. Insist on Clear Agreements

• Work with a lawyer to create a purchase agreement that spells out every key detail: what’s being bought, price, delivery terms, payment structure, and remedies if things go wrong.

• If using collateral (such as gold held by the seller), outline how it secures your purchase.

3. Leverage Legal Protection with the Collateral Registry

• In Kenya, the Movable Property Security Rights (MPSR) Registry enables buyers to register a security interest in the gold, or in the assets pledged as collateral.

• Registering your interest ensures that, should the seller not fulfil their obligations, you have legal standing and priority.

• This doesn’t transfer ownership instantly, but it gives you powerful rights to claim the collateral legally after any default.

4. Document and Register Everything

• All agreements, payments, delivery records, and registry notices should be kept safe and organized.

• Prompt registration in the MPSR is vital—priority is determined by who registers first.

5. Due Diligence and Verification

• Confirm that the gold exists, matches what you’re buying (purity, weight, certification), and that the seller holds undisputed title.

• Visit the gold physically, if possible, or use a trusted third-party to inspect and verify.

What Happens When There’s a Dispute or Default?

If the seller doesn’t perform:

• You can initiate procedures to enforce your registered security interest in the gold or collateral.

• The proper legal path lets you take possession, appoint a receiver, or sell the asset, in line with your formal agreement and Kenya’s laws.

Having followed the above process, you’ll be in the best possible position to recover your asset or investment swiftly and with minimal dispute.

EasyGold — Your Trusted Partner

At EasyGold we’re committed to guiding buyers through every step of a safe, transparent gold buying process. Our expertise in legal compliance, collateral arrangements, and secure transactions means your investment is always protected.

If you’re ready to buy gold or want personalized advice on securing your purchase, connect with our team for tailored support.