How it works
Collateral Financing
Think of collateral financing like buying a house. You put down a deposit, and the bank covers the rest of the purchase through a mortgage (loan).
As the value of your house (precious metals) increases, so does the equity in your house. When you choose to sell your house, you pay back the remaining value of the mortgage (loan), but you get to keep all of your equity (which increases if the value of precious metals increases).
Another benefit of this is as your equity increases, you can take out a reverse mortgage (additional loan) to purchase upgrades on your house (or purchase additional precious metals).
Simply put, a collateral financing account allows you to realize higher returns on your investment when the value of precious metals increases versus an outright purchase (no loan).
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Projected Returns
Many analysts believe that Silver could reach much higher prices in a very short period of time. Some are projecting Silver prices as high as $70 an ounce over the next year. Unleash the power of your money by opening a collateral financing account. Finance up to 80% of the purchase using metals as collateral.
| Collateral Financing vs. Outright Purchase Example*: | ||||
|---|---|---|---|---|
| Â Initial Investment | $10,000(USD)Â | Â | Â | |
| Sport Price of Silver/oz at time of purchase | $25.00/oz(USD) |  |  | |
| Â | Collateral Financing (1548oz Silver) |
vs | Outright Purchase (328oz Silver) |
|
| Equity Level:** | Â | 20% | 100% | |
| If Silver increases to: | Â | Return on Investment*** | Â | |
| Â | $50/oz USD: | 271% | Â | 57% |
| Â | $60/oz USD: | 422% | Â | 89%Â |
| Â | $75/oz USD: | 649% | Â | 137% |
**In the above example the collateral financing equity level is 20%. This means that 80% of the purchase will be financed at day one. Financing is the choice of the client and is not an obligation. It is open ended and may be left to accrue. It may also be paid down or off at any time.
***Approximate net return over 36 months including storage and financing with finance charges of 7.25%/yr and storage charges of 1.5%/yr.
Features and benefits of collateral financing
- No collateral needed other than the precious metals you purchase
- No credit check required
- Up to 3 to 1 leverage
- Collateral loan facilities up to 80% financing
- Buy and sell in worldwide markets, plus the ability to place stop orders (buy and sell)
- Trade in 1 oz increments at wholesale prices and have instant liquidity of your product with wholesale bullion*
- Take delivery of your product at any time
*Wholesale Bullion refers to Bullion product held through PMI’s Bulk Bullion Custody Service and represents an interest in non-allocated Bulk Bullion holdings. It is NOT a certificate, grant or endowment convertible to Bullion. Bulk Bullion holdings comprise a mix of various Bullion holdings maintained at major institutions (please ask about our Depository Relationships). Customer holdings can be traded in 1-ounce increments. PMI does not maintain short positions, does not trade futures, does not trade options, and does not lease Bullion. Bulk Bullion Custody holdings offer customers a flexible and cost-effective way to invest in Precious Metals. Holding positions in Bulk Bullion form improves liquidity and provides fair pricing in all market conditions. Of course, upon payment of applicable differences in premiums, shipping and handling fees, customers can convert their Bulk Bullion holdings to allocated specific types of Bars or Coins and take delivery at any time.
