Gold assay and settlement: getting the fundamentals right

An assay result becomes commercially useful only when the parties have agreed how the sample is taken, sealed, divided, transported and tested. The contract should identify the appointed laboratory, analytical method and the result used for provisional or final settlement.

Representative sampling matters as much as laboratory capability. A precisely measured sample cannot resolve a dispute if it was not drawn under an agreed procedure from the material being sold.

Buyer and seller results may differ. The agreement should define an acceptable tolerance and state when an independent umpire assay is required, how its sample is selected, which result becomes final and how the cost is allocated.

Final value depends on the agreed weight, fineness, pricing basis, deductions and applicable costs. None should be supplied by assumption. A draft quotation or corporate offer remains subject to seller review and approval until an authorised representative approves and issues it under the stated validity and conditions.