Madison Precious Metals
 
     

Leverage Example     

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PUTTING LEVERAGE TO WORK FOR YOU

A client can invest in physical commodities in one of two ways:  Fully-paid or by financing a portion of the purchase price with the Matrix Account from Madison Precious Metals, Inc.  By financing his purchase, an investor can control 4 to 5 times as much commodity as he can in a fully-paid transaction.  Equity requirements are set by Madison Precious Metals, Inc. and typically range from 20-25% of the total purchase price of the commodity.

In the example below, we see how an investor with approximately $9,000 could invest in gold.  We will assume that gold is at an asking price of $900 an ounce.  Madison Precious Metals, Inc. offers gold in 10-ounce bars.

Fully-paid purchase

Financed through Madison Precious Metals, Inc. Financial Services

 

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One 10-ounce bar of gold bullion = $9,000 (plus fees and commissions)

Client can elect to take physical delivery of the gold bar and pay shipping costs or leave the metal in a certified depository and pay storage fees.

 

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Five 10-ounce bars of gold bullion = $45,000 (plus fees and commissions)

By making a 20%* down payment of $9,000 and financing the balance**, the cost per bar is only $1,800 (plus fees and commissions) and the investor has five bars of gold in his account instead of one.

*Client will be required to maintain equity at or near this level, creating the possibility of an “equity call” for additional funds in the event of adverse market moves.

**Client will incur ongoing interest charges on the unpaid balance.


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