I had to look, I had looked at the website for selling gold a few days ago and saw one seller. I have no problem with that, as it always takes time for people to become aware of resources.
But then I looked at www.fidelitymetals.com per your comments you are indeed a salesman. Had markqf1 not asked questions I would have passed you by.
On your “home” tab you state “We specialize in helping investors diversify a portion of their portfolio into hard assets such as gold, silver, platinum, and palladium with advanced investment strategies designed to maximize returns through the purchase of leveraged or non-leveraged physical precious metals”.
Hard assets are metals in hand, what you offer are pieces of paper that lay claim to metals you supposedly possess. When I clicked on your “leveraged” tab I notice it takes $3,000 to buy in (gamble) while financing up to 80% of your purchase. It is not stated what this finance charge is but if one where to “finance” 80% with $3,000 down there is the implied liability of $12,000 not counting the 3 grand down. This is 5:1 leverage with 3 grand out of pocket and if there is a market move to the downside there will be a margin call requiring additional cash to be sent to you or the client would be in default and forfeit their initial 3 grand investment. Correct me if I am wrong. What I am most amazed at is you fail to mention margin calls at all in a declining market anywhere on your site that I can find (please direct me).
You state that “100% of the precious metal will be physically stored” on a leveraged account? What source of financing do you use to hold physical metal worth 5 times the deposit cash you have received from individuals that have opened an account? Who audits your physical metals in your vaults?
This is too funny on your leverage page, like anyone with half a brain does not make the connection between today’s economic woes and leverage in real estate “The purchase of leveraged bullion uses the same logic found in real estate investment opportunities--where you buy a house on speculation”. At least I found this one potential caveat “Always keep in mind, a leveraged investment is a two-way sword, it can work for you or against you”. Real estate has been indeed a 2 edged sword to the negative of late. An interesting corollary is that the current estimate is that 1 out of five homeowners in the US are holding underwater assets (meaning their home is worth less than they owe).
The one thing I did not find but am rather sure exists is that if PM prices go down there are margin calls that must be paid. Typically when margins cannot be met all is forfeit.
I know this sounds hard but I offer no excuse but to say I am a hard money man that does not like uninformed individuals getting sucked in to high leverage situations were their life’s savings can be lost because of limited education on leverage margin calls. If I have painted you wrong please accept my apologies but provide me with the answers that show me wrong. If you have been in this business for any time you should view my commentary as the due diligence required of any intelligent investor.