So you are looking for a gold seller in Africa, you received some nice offer, and you would like to do a bit of research on the mining company before getting too deep into discussions.

This is wise. More and more people in Africa have developed tactics to scam gold buyers, especially those first-time buyers who hear of cheap African gold and think it’s as easy and safe to deal online. But the most under-rated tool to reduce risks in Africa is certainly running a gold seller background check on potential sellers.

So, how to check a gold seller in Africa? Here are 6 useful tips you can leverage.

1. Choose the right target

Do not waste time searching for information about the company mentioned in the salesperson’s signature. They might actually steer you toward another company when the time comes for payments.

Ask for the company name and address that will be mentioned on the SPA. Or, better yet, ask for FCO (if both parties already have a good idea of the gold & pricing) and look at the company name on that document.

2. Spot unscrupulous sellers

The first one is to tell potential sellers that you’ll have the whole quantity of gold you want to buy inspected by your local agent. Again, if they are confident in their abilities, they will say OK. Mention it right away, from the first encounter/email. If the gold seller refuses to meet your local agent or looks flaky, it is a red flag!

(By the way, gold and quality inspection or audits are the right tool to verify a seller’s claims about their gold mining capability. Most gold and quality inspection Agency, and some sourcing agents can inspect and audit a gold seller based on a checklist that corresponds to your needs. Prices range from $1000 to 2000 USD per inspection project.

3. Make good use of search engines and B2B directories

Open Google or Bing and search company name, while searching the gold seller’s company name, you will likely to find the profiles they created on several B2B directories. Look at the addresses and phone numbers associated with the seller’s company, If they are not the same, he will have some explaining to do.

If the company has a paying account on a B2B directory, some information on their profile might have been verified by the directory itself:

In any case, the general tendency is to show more and more of these data out there, in the open. It contrasts strongly with Ghana’s culture of opacity, and I think it is a very good thing.

4. A sample request is a good occasion to check two things

If you need to pay for the initial sample charge, request to pay for it on their company bank account, If this information is provided, it is a good sign. Then, ask them for the address for YOUR local agent to come and pick up the sample. Does that address match that of their email signature etc.?

5. Background checks, on the cheap

Have an agency check the registration of the gold seller’s company, and check a few other things as well. More and more service companies and lawyers help gold buyers do this, and we can also provide a gold seller background check service in Africa to our clients.

Note that the target company is NOT aware that one of their customers is running this type of verification on them. In many cases, though, the customer should be proud of it — it shows they are a serious customer, investing to build a solid and long-term seller base.

6. Background checks, together with professional advice

If you don’t like a DIY solution, a lawyer or accounting firm that works in Ghana or respective country of origin can help you. If you are not familiar with African business practices, they can smell inconsistencies or red flags and warn you.

Note that, in this case, the seller knows an investigation is under way. Again, I believe gold buyers should not be apologetic about this.

If you follow these steps, you will reduce your chances of getting scammed significantly. In upcoming articles I will describe other ways to vet a potential supplier.