Precious metals broker legit?
I was contacted by a precious metals sales rep with a broker in California. He told me about their website and offered to mail out a brochure about the company. I went to the website and it seems pretty well done. The business has a A- rating with the BBB (with accreditation from BBB as well), but I noticed they’ve only been open since 2007. They’re basically wanting me to invest using a 4:1 leverage in gold bullion. The management fee is 15% of total metal bought. While that seems steep, they are not hiding this factor and all the disclosures are clearly spelled out on the web page.
My question is: do any of you deal with one of these brokers? I looked around and it appears there are quite a few of them. With the leverage, I’m sure there’s a greater risk. What’s the story?
Good investments sell themselves. Bad/risky investments, need to be sold. Leverage is fine, when it works in your favor. When it does not, the down side can be brutal.
If you want to buy gold, then buy it. Why do you need to use leverage, or a broker??
I would not be interested in this. And I say this as someone who has many (gold) Kruggerands sitting in his safety deposit box.
I think that was my point. How legit is any dealer/broker that needs to cold call people to get them to invest???
Gold Dealer, Leveraged Precious Metals in Jupiter FL 33458