Gold Deal Structures: Cash & Carry, FOB, and CIF Explained

In the fourth installment of our gold transaction series, we explore the essential delivery and payment terms shaping global Dory gold trade—Cash & Carry, FOB (Free On Board), and CIF (Cost, Insurance, and Freight). These terms are more than industry jargon; they dictate risk, responsibility, and logistics. A recent Kenya-based seller’s procedural update offers clarity on how these structures are being successfully applied to real-world transactions in 2025.

Let’s unpack the key differences—and how each option can benefit your next gold deal when structured correctly.

1. Cash & Carry / FOB: Speed, Control, and Instant Settlement

In a Cash & Carry or FOB (Free On Board) structure, the buyer physically travels to the seller’s location—in this case, Kenya—to inspect the gold before purchase. This model works especially well for buyers who want maximum control and minimal reliance on intermediaries.

Here’s how it works:

• Physical Inspection: The buyer visits the secure storage location to verify the gold’s presence and condition.
• Ministry of Mines Verification: Kenyan officials conduct formal testing to validate the quality and origin of the gold.
• Sealing and Allocation: Once confirmed, the gold is sealed and officially allocated to the buyer under government supervision.
• Immediate Payment: With the buyer satisfied, full payment is made on the spot—either in cash or by wire transfer—before the buyer arranges their own export or transport.

Benefits of Cash & Carry/FOB:

• Total transparency and trust between buyer and seller.
• Fast transaction cycle.
• Buyer arranges export independently, reducing seller risk.

This method is ideal for experienced buyers, particularly those who have their own logistics teams and export licenses.

2. CIF: Structured, Secure, and Ideal for Remote Buyers

For international buyers who can’t travel to Kenya, the CIF structure provides a more accessible, end-to-end logistics option. Under CIF terms, the seller agrees to deliver the gold to the buyer’s destination, covering all costs up to that point.

Here’s how CIF works:

• Availability Check: The seller confirms inventory and location of the gold.
• Assay Verification: The gold is tested by a government-authorized lab.
• Secure Custody: After verification, the gold is transferred to a mutually agreed secure vault, such as a Customs facility or MySafe Vault.
• Documentation & Export: The seller prepares all export documents and clears the gold through customs.
• Pre-Shipment Costs: The buyer is responsible for covering upfront costs, including:
  1. Government taxes
  2. Insurance fees
  3. Customs clearance
  4. Air freight to the buyer’s location
• Final Inspection & Payment: Upon arrival at the destination and successful verification, the buyer remits final payment to the seller.

Benefits of CIF:

• Remote buyers can execute deals without travel.
• The process is structured and controlled end-to-end.
• Risk is shared through export insurance and government oversight.

Choosing the Right Structure for Your Trade

• Cash & Carry/FOB is best for buyers seeking speed and control.
• CIF is ideal for those who need a turnkey solution and are comfortable with a slightly longer cycle and shared risk.

Either method can work when backed by credible documentation, transparent assay reports, and licensed logistics providers. The key is aligning expectations from the outset—and ensuring all stakeholders understand their responsibilities.

At Invest Offshore, we facilitate gold trades under both models across West Africa and Kenya, helping buyers and sellers meet in the middle—with trust, speed, and security.

Ready to structure your next transaction? Contact us today.