Brokerage Services
IBS Metals brokers a wide variety of precious metals products allowing its
customers to effect spot and forward transactions, to borrow or lend physical
precious metals, and to finance physical precious metals holdings at highly
competitive rates. We support five distinct transaction types for three different
types of traders.
Programs
Precious Metals Accumulation Program
Investors interested in making regular, cost averaged purchases of Gold,
Silver, Platinum or Palladium can do so by making a minimum Monthly
Purchase Commitment of as little as $100.00.
It could not be simpler. Open a Spot Precious Metals Account
with IBS Metals, execute the Precious Metals Accumulation
Program Agreement Rider and arrange to fund each month’s
purchase by the 10th business day of the month.
Transaction Types
"Spot" Physical Metals Transactions
This is the most common type of Over-The-Counter (OTC) precious
metals transaction. In a "Spot" Trade, you buy or sell physical
precious metals for "prompt settlement".
"Prompt Settlement" means the exchange of physical precious metals for currency
(usually U.S. Dollars) in full satisfaction of the terms and conditions of an
OTC physical precious metals trade within two business days.
For example, if you purchase precious metals the entire value of your purchase
must be funded by depositing "good funds" with IBS Metals by the Settlement Date.
Conversely, if you sell physical precious metals, you must deliver the precious
metals you sold (subject to the Delivery Terms of the particular trade, i.e.
delivery location) free and clear by the Settlement Date.
Short Sales of precious metals not on deposit in your IBS Metals account at
the time of sale requires prior approval.
Margined Forward Physical Metals Transactions
A Margined Forward transaction is identical to a "spot" transaction except that the Delivery Date is extended into the
future by mutual agreement. A small good faith deposit controls the entire face value of the contract creating leverage or
gearing of the transaction. This gearing increases the potential for profit as well as
loss. IBS Metals requires a good faith deposit to secure performance on all margined forward
transactions.
Collateralized Financing of Precious Metals
Holders of physical precious metals can acquire liquidity or
increase their leverage by entering into a Collateralized Financing
Agreement for physical precious metals held in your IBS Metals account.
Financing rates are highly competitive and, in some instances, IBS Metals can
finance up to 95% of the market value of your holdings. The Borrower is required
to maintain a minimum equity level at all times.
Physical Metals Lending
Holders (Lenders) of physical precious metals can earn income and
reduce the cost of ownership by lending their precious metals holdings to
IBS Metals. A physical precious metals loan generates a known
rate of return while eliminating depository storage fees. Upon the loan's
maturity, IBS Metals will pay the Lender the agreed upon Lease Fee and return
fully "fungible" precious metals per the terms of the agreement.
Physical Metals Borrowing
Consumers of physical precious metals can acquire the use of these
metals (subject to a return requirement), at rates that are typically lower
than U.S. Dollar financing rates. IBS Metals requires borrowers of
physical precious metals to post and maintain an agreed upon collateral
deposit. IBS Metals will lend the agreed upon physical precious metals to the
borrower, for a specific term and subject to the return of "fungible" physical
precious metals and the payment of the agreed upon lease fee. At all times, the
borrower must maintain the agreed upon minimum collateral value, on deposit
with IBS Metals.
In addition, the borrower may be required to deposit additional collateral with
IBS Metals, on short notice in the event of increases in the underlying price of
the lent physical precious metals.
Trader Types
Self-Directed
Qualified investors who wish to make their own trading decisions
gain unprecendented access to the OTC precious metals market. Services include:
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Direct access to live tradable precious metals quotations with The Metals Desk™
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Commission-free trading (price mark-up/mark-down may exist)
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Narrow Bid/Ask Spreads
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Physical delivery anywhere within the continental United States.
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Real-Time Positon, P&L and Margin Reports
Broker-Assisted
Developed for individual investors who generally make their own
trading decisions but may occasionally need or require the services of an
experienced broker. Services can include assistance with order placement; aid
in the development/execution of a trading plan; trading recommendations and
executions. Fees vary based on levels of service provided.
Managed Precious Metals
Developed for the individual trader who does not have the time or
experience to make his or her own precious metals trading decision or wishes to invest
funds with a professional precious metals trading manager. IBS Metals conducts
in-depth reviews of established as well as new trading managers who specialize
in precious metals.