The
most commonly asked questions on Precious Metals
investing are addressed and answered below. Here are
answers to some common questions about Blue Crown
Financial and our Physical Commodity Investment Program:
What
exactly is meant by a physical commodity investment?
You're
not just buying a piece of paper. You purchase the
actual, physical commodity. You have the title and can
have your purchase delivered to a depository backed by
Blue Crown Financial or actually possess the physical
commodities yourself.
How
can I arrange for Blue Crown Financial to finance a portion
of the purchase price?
Upon approval, Blue Crown Financial accepts an equity deposit
from you, usually 35% to 40% of the purchase price, and
then finances the balance. With this arrangement, you
can buy much more of a commodity than if you paid all
cash...and the benefit of that powerful leverage makes
your investment dollars worth more. There are interest
costs and service fees when you finance a portion of
your purchase with Blue Crown Financial. You can arrange your
own financing.
How
does the physical commodity investment program offered
by Blue Crown Financial compare to trading commodity futures
contracts?
You get control of the actual metal, not a piece of
paper. There are no concerns about delivery dates or
contracts. You can create the powerful investment
leverage as you could in the futures markets but without
the risk potential to develop negative equity because
our non-recourse loan feature limits your risk to your
equity deposit.
Could
you explain how the non-recourse loan works?
When Blue Crown Financial finances a portion of the
investment, it creates a non-recourse loan, which means
that Blue Crown Financial is responsible for any deficit in
your account due to a down market. You can add equity or
close your position at a loss if the markets you invest
in move against you and your account equity drops below
the minimum. If you add funds to boost the equity in
your account, all the funds committed to margin the
commodity are at risk. Should you liquidate your
account, you can't lose more than you have already
deposited.
Your
limited-risk feature sounds similar to trading options
on futures. Is it?
You do have pre-determined, limited risk; but unlike
options, our program has no expiration date and that is
how our program differs from trading options on futures.
Time isn't a factor so you can't be forced out of a
trade. You are purchasing or selling physical
commodities, rather than an option on a
"dated" futures contract. You can ride out
adverse or sideways market movement.
Your
Physical Commodity Investment Program offers a new way
to invest in commodities, but can investors sell
commodities as an opening transaction?
Yes, you can invest in rising or falling physical
commodity markets through Blue Crown Financial and have the
opportunity for significant investment profits whether
the markets are headed up or down. By using the
"Commodity Loan" feature, most of the
commodities and currencies available from Blue Crown
Financial for purchase can also be "sold" as
new, opening positions. Review our brochure, our Account
Agreement, and our Risk Disclosures and Acknowledgements
and check with your Account Representative for full
details. Volatility means opportunity and we offer you
the chance to take advantage of the effects of rapidly
changing commodity. A reminder: The purchase or sale of
physical commodities is speculative. Only investors who
can comfortably lose part or all of their investment
should engage in these transactions.
I
often use "stop" and "limit" orders
in my trading, does your program permit these types of
orders?
By using limit and stop-loss orders, you can control
your entry and exit points. You can place a limit order
to execute a trade at a price higher or lower than the
current price, enabling you to enter the market at the
price you want. You can set a stop order to close out
your position in the event prices rise above or fall
below a level you decide in advance to give you more
control. You should understand that when a stop order is
triggered, it then becomes a "market order"
and your position will be closed at the next
"market" price that could be considerably
higher or lower than the price on your stop order.
How
do I open an account with Blue Crown Financial ?
Opening an account with us is an easy process.
simply call us today at 1
(562) 912 2404
(Local
and international) or visit our New
Account Page
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