I've known these Somalian guys, as my neighbors, for about 2 years. I know them, they know me - we BBQ chicken, goat-meat, whatever.... and, I've given them the "silver talk" on multiple occasions. So, this guy, "Kayce Omar," shows up tonight. He's not a regular part of thieir crowd, but I have seen him around my apartments for about a year, or more. He's a "legit" Somalian immigrant. His citizenship papers get stamped in 2 weeks - so he says. We actually have to use my Somalian frieind, Delmar, to translate the majority of this coversation - so there's not really any room for B.S. The interpreter, Delmar, is your basic "family man:" a wife, 4 kids, and works two jobs to make ends meet - and I've known him to be an honest, hard-working guy for the 2 years that I have known him.
Here's my issue that I need help with: Kayce says his family has been in the Northern Somalian mountialns for about 200 years - mining rubies, primarily. However, gold and silver are also - according to him - significant byproducts of their operations. So, now that Kayce-Omar has immigrated to the U.S., he is looking for a way to bring in their precious metals to the U.S., legally. And, apparently, that requires some kind of a license. And, they would like to trade/sell their raw materials for U.S. dollars.
We have a very tentative deal set up, at the present moment. I figure out how to acquire the license - and pay for it - and he pays travel expenses, as the courier, to bring about 600 Kilos of silver bullion into the U.S, over the next year.
Yeah, I know - that's a lot. My main risk is that I buy them the license and then they screw me over. But, my other Somalian friends - who are only "loosely" friends with Kayce-Omar, tell me his story is legit - but they're all high. And, my deal is that I only pay for what is in front of me - AFTER I've had it assayed and tested by the local bullion store for purity. It sounds like a good deal.
One caveat here - I will definitely wait until tomorrow to "run the numbers" and check the profit margins. But, my basic idea was that the Somalians, who are acutally doing all of the "digging in the dirt" should profit, at least, twice as much as any "middle men." So, $400/kilo is their share. Whatever is left over (~$140/kilo is easily split between Kayce-Omar and myself).
Keep in mind that between myself and my family, we have all of the cash this would require to buy up to ~$3 million in silver bullion (depending on the purity, of course). Kayce-Omar would probably not be able to carry more than 50 Kilos per trip, pragmatically speaking - give or take a few kilos.
And, I don't assume ANY risk at all, until after the bullion has been assayed by the local shop - except for the cost of the license to bring it into the U.S.. And, that's the rub. I am starting "dry" on this point. How much is a license to carry precious metal bullion into the U.S. ??? I have no clue on this aspect of the proposed deal. So, I have my research cut out for me. I have 4 - 6 weeks to come up with the license. If anybody out there in the #steemsilvergold world has any direction for me to take - please lay it on me, ASAP!
600 Kilos of silver are, apparently, on the line here. Plus, whatever their monthly production rate is (which I have no clue about, at the present time). Please keep in mind that Kayce-Omar laid out several rubies and pieces of silver-ore on the table in front of my eyes tonight - so this guy seems like no B.S., especially considering the fact that he was blitzed on Budweisers, etc. this evening. He speaks little English, and is just looking to get started on his project.
We exchanged phone numbers. I'll have a slight hangover to deal with tomorrow morning. Otherwise, hopefully I will come back online here and find some guidance for my current situation - in the morning.
I figure, if the license is in the $500 - $3,500 range, it's an acceptable risk to take - or to test out. If it's more than that, I'll have to do some more serious thinking about what's going on here. Anybody have any idea about importing precious metals into the U.S.?
Any help and input is much appreciated. I know - it's not a good idea to "talk business" when you're not "in control" of your faculties. But, this was not something these guys, "sprung" on me - I brought up the whole silver/money topic, and 3/4 of the rest of the guys present weren't even interested in this converstaion, in the slightest.
Good evening and STEEM ON!!!
Update:
So, looking on the Federal Customs website, I don't see anything that would limit any amount of hand-poured silver bullion. I'm seeing that for any amount over $10,0000, of MINTED foreign or domestic coinage, there is a form that must be filled out and your "money" declared - called... well, let me just quote the website:
"...There is no duty on gold coins, medals or bullion but these items must be declared to a Customs and Border Protection (CBP) Officer. Please note a FinCEN 105 form must be completed at the time of entry for monetary instrumentsover $10,000. This includes currency, ie. gold coins, valued over $10,000. The FINCEN definition of currency: The coin and paper money of the United States or any other country that is (1) designated as legal tender and that (2) circulates and (3) is customarily accepted as a medium of exchange in the country of issuance."
So, other than declaring any silver bullion over $10,000 in value, there seems to be nothing here to indicate that hand-poured bullion needs any kind of a special license to bring into the U.S.
One thought did occur to me, however... What if there were Uranium deposits nearby??? That could be REALLY, REALLY BAD! So, I'm thinking of sending off Kayce-Omar with his very own Gieger Counter - which would set me back about $200 - $300. Otherwise, if he kept it under... 18 Kg per trip, he wouldn't even have to declare it to customs (so long as the spot price stays $16 or less).
I suppose an actual trip to the airport to discuss it with local customs officials would probably be in order - just to make sure.
Update #2: "Ogo Mountains Recreation / Outdoor Mountain Ranges Somalia 10.735847.245. The Ogo Mountains, also known as the Galgodon Highlands, are a mountain range in northern Somalia."
So, I'll test this guy on the name of the mountain-range to see if he hesitates, or not. He should know the "Ogo Mountains" off the top of his head. Otherwise...
AND... to the slight problem of getting my family to ante-up the $282,000 required for the full 600 Kg of poured silver... Or, actually, it's not going to be 100% pure, so it will be less than that.
Wish me luck. We'll probably do this in small steps... I will keep you guys posted.