VGA Gold Supply and Pricing

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Abstract

The global gold market is influenced by fluctuating demand, ethical sourcing concerns, and the increasing need for secure and transparent supply chains. 

Veterans Global Assets (VGA), through its strategic partnership with Kobaato Ghana LTD, provides a sustainable solution by offering direct access to high-purity, ethically sourced gold from Ghana. 

This article examines challenges in gold procurement, including supply chain inefficiencies, unethical mining practices, and economic volatility. By leveraging an integrated supply chain model and ensuring strict regulatory compliance, VGA presents a secure and ethical investment opportunity.

Introduction

Gold has long been considered one of the most valuable commodities, acting as a hedge against inflation and economic downturns (World Gold Council, 2024). 

Central banks continue increasing their reserves to mitigate risks associated with fiat currency depreciation (London Bullion Market Association, 2024). However, the industry faces challenges such as:

• Supply chain inefficiencies that impact availability and pricing.
• Unethical sourcing linked to labor exploitation and environmental degradation.
• Market volatility driven by geopolitical and economic factors  (Bloomberg Market Data, 2024).

Veterans Global Assets (VGA) addresses these issues by ensuring all gold sourced meets stringent ethical and quality standards, providing investors with a secure and transparent purchasing experience.

Background: Ghana’s Role in Gold Production

Ghana, often referred to as the "Gold Coast," has a well-established gold mining industry, contributing approximately 40% of the country’s national exports (Ghana Chamber of Mines, 2024). 

As the second-largest gold producer in Africa, Ghana is integral to global gold supply. 

Regulatory measures such as the Minerals and Mining Act (Act 703) ensure responsible mining and promote sustainable economic growth (Ghana Minerals Commission, 2024). 

Despite these efforts, small-scale mining operations, which account for over 30% of Ghana’s total gold production, continue to pose challenges, including:

• Environmental degradation due to unregulated mining.
• Unfair labor conditions affecting artisanal miners.
• Lack of supply chain transparency, making ethical sourcing difficult.

Problem Statement

The global gold market is plagued by issues that impact investors, industry stakeholders, and economic stability:

• Ethical sourcing concerns: Reports of child labor and environmental exploitation in certain regions (World Gold Council, 2024).
• Lack of supply chain transparency: Opaque procurement practices make verification difficult (OECD, 2024).
• Security risks: The physical transport of gold is vulnerable to theft and fraud (Bloomberg Market Data, 2024).
• Market volatility: Gold prices fluctuate based on foreign exchange rates, global policies, and investor speculation (London Bullion Market Association, 2024).

Proposed Solutions by VGA

Veterans Global Assets (VGA) addresses these challenges through:

1. Direct Sourcing Partnerships: By working directly with Kobaato Ghana LTD and certified local miners, VGA eliminates intermediary costs and ensures responsible sourcing.
2. Quality Assurance Protocols: All gold is tested to meet international standards, exceeding 23K purity.
3. Enhanced Logistics & Security: VGA employs insured transport partners and follows international security protocols to ensure safe deliveries.
4. Regulatory  Compliance: VGA adheres to OECD Due Diligence Guidelines, Ghana Minerals Commission regulations, and London Bullion Market Association standards for ethical sourcing.

Supporting Evidence

• Sustainability & Ethical Sourcing: VGA adopts Conflict-Free Gold Standards to prevent financing of armed conflicts and unethical labour practices (World Gold Council, 2024).
• Economic Impact: Ghana’s artisanal miners produced 1.1 million ounces of gold in 2023, significantly contributing to      employment and GDP growth (Ghana Minerals Commission, 2024).
• Market Performance: Gold prices have increased by 7.5% annually over the past decade, making it a lucrative investment      (Bloomberg Market Data, 2024).
• Global Demand: With gold demand projected to rise by 12% by 2030, VGA’s strategic positioning ensures long-term sustainability (London Bullion Market Association, 2024).

Process Flow for Gold Aggregation

Kobaato Ghana LTD follows a structured process to ensure quality and compliance:

1️Buyer Request
→ Buyer sends an official request for a Proforma Invoice (quantity, karat, discount).

2️ Proforma Invoice Issued
→ VGA/Kobaato responds within 24 hours with pricing and details.

3️ Agreement & Payment
→ Buyer and VGA/Kobaato agree on pricing, and the buyer makes payment to the Ghana Gold Board.

4️ Gold Aggregation Begins
→ Collection of gold from certified miners (takes 2-5 days).

5️ Initial Assay Conducted
→ Kobaato tests for purity and weight, generating an official invoice.

6️ Final Assay & Certification
→ Government lab verifies purity and issues final assay & customs certificates.

7️ Secure Packaging & Transport
→ Gold is sealed in a secure box with VGA, Customs, and Assay Department seals.

8️ Delivery to Buyer
→ Gold is shipped securely to the buyer’s preferred destination.

At Veterans Global Assets, we remain committed to providing high-purity gold while ensuring transparency in pricing and market dynamics. 

For inquiries or transactions, please contact us for real-time pricing and availability.