Leveraged Bullion |
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A Leveraged Precious Metals AccountWith our Leveraged Precious Metals Investment Program you can invest in physical gold, silver, palladium, and platinum by providing us with a down payment. You own the underlying gold, silver, palladium, or platinum and can sell it on demand – your metal can be traded on a moment's notice.
The program is very similar to making a down payment on a house, but you are not required to make monthly payments, with the exception of monthly credit fees that will be charged to your account. All you have to do is make an initial minimum deposit equal to 23% of the metal value and First National Bullion will act in your behalf as your agent and arrange for financing and purchase of your precious metals with an Independent Wholesaler. Most investors do not take delivery of a stock certificate when they buy shares of a stock. Such is the case with physical precious metal investments. If you take physical delivery of the precious metal you own, First National Bullion acting as your agent you would have to arrange shipment and processing with the Independent Wholesaler. so it can be sold. The delay could result in the market price moving away from your desired selling price. The solution is to keep the metal at the firm you have an account with, allowing you to buy and sell at a moments notice. Powerful Investment LeverageThe purchase of leveraged bullion uses the same logic found in real estate investment opportunities--where you buy a house on speculation, believing it will increase in value over the next several years. The majority investors would make a small down payment on the house, and take a mortgage for the balance of the purchase. In this manner, you have only put up a small percentage of the asset's value, and given the market moving in your direction, you will enjoy all of its appreciation and profit when sold. This form of financing permits the control of a large asset with only a small investment. Always keep in mind, a leveraged investment is a two-way sword, it can work for you or against you. You can buy Gold and Silver Bullion with the same approach, which means that when their value rises, your ability to make potential profits is increased considerably by the leveraging effect. You have certainly experienced or heard about homes which were purchased with a very small cash investment, and which were sold two or three years later for tremendous profit. The same can be done with precious metals. In a bullish metals environment, the use of leverage can significantly enhance your investment returns. Smart investors understand the risks and rewards of using leverage. They realize the potential results of their investments can be magnified substantially. As an example, if you were to put down only 20 percent of the total metal value and finance the other 80 percent, the results of a price movement in your direction, relative to your investment is multiplied five times the equivalent of an all-cash purchase. First National Bullion allows you to put down as little as 23 percent of your purchase, giving you nearly five-to-one investment leverage. If you wish to take a more conservative approach, you can increase your cash investment, thereby reducing your leverage. The use of leverage is for the precious metals investor who wants to multiply the effect of his or her investment dollars. Investors who finance their positions should understand the risks and rewards of leveraged investments as well as understanding the monthly credit fees associated with such a purchase. |


