Frequently Asked Questions

1. What are the products?  Physical gold, silver, and platinum bullion.
    
2. What is a spot-metal purchase?  You’re buying the actual physical metal at the current retail "ask" price,  that can  then be  delivered  to  you at any time  upon  request and  payment  in  full.   You are not buying futures contracts or options on futures contracts.Delivery of your purchase is made within 28 days to a recognized depository or financial institution.
    
3. How can I open an account? We can fax you the New Account Agreement documents. You can open your account on-line at our website, LBCGold.com. You can down-load the documents from our website, complete them, and mail or fax them back to us. W come can also mail or e-mail the documents to you.  It’s your choice. Maximum term of the account is five years.
    
4. How do I purchase the metal?  With a cash deposit.  We can, however, accept some one ounce gold or silver coins, but noother financial instruments to open an account. It is also possible  to use some coins or bullion to open or enhance the value of your account. For cash deposits,  we require funds in U.S. dollars. You can wire, FedEx, or mail your deposit to us. We recommend wire transfers or U.S.P.O. money orders,  as personal checks delay entering the market by a week while clearing our bank. Your bullion is purchased at the current "ask" price.  
    
5. Can I use the cash value of my IRA?  Yes. It’s very simple and we’ll show you how.   Once you have completed our New Account Agreement documents,we will send  you  the necessary  documents  to convert your existing traditional  or  Roth  IRA  to a self-directed  traditional or Roth IRA .  Once completed, all you have to do is instruct your new self-directed IRA administrator to wirethe funds to us to open your metals account. Then you are free to buy the metal of your choice with no out-of-pocket expense.  Annuities can also be converted. 
    
6. How do I Profit?  Should the price of your metal move in your favor, you could profit to that amount, less your actual cost of commission and fees, interest, and the "bid" - "ask" spread. Your financed account could allow you to profit as muchas$2.50 for every$1.00 move in your favor. Of course, in the event of a market reversal, you could conceivably lose$2.50 for every$1.00 move against you.
    
7. How much financing is available?   We are able to provide you with as much as 60%. This allows you to buy much more metal than you could buy in an outright purchase. While thisfinancing gives you the opportunity to achieve a much greater return should the market move in your favor, it also carries the possibility of a larger loss if the market moves against you.
    
8. What is the finance rate? Currently finance rates are  prime plus 6 ½%.
    
9. Who holdsmymetal?   It’sheld on yourbehalf at  secure, recognized,  depository or financial Institution(see #12).  Forwarding is available to you directly from that facility if you choose to pay off your loan and take delivery. A delivery receipt is issued in your name for each of your purchases by the depository.
    
10. How is my metal held?  As an undivided share of a fungible lot held by a recognized depository or financial institution. 
     
11. What are your fees? LBCGold charges a 15% fee on the total metal value of each  purchase. This fee represents ourcosts, administrative fees, and full advisory service benefits for5 year period during which you pay no further commissions or fees on the purchase.   
     
12. How is my metal stored?  In a secure, recognized depository or financial institution in accordance with the terms and conditions of your account agreement as an undivided share of a fungible lot. You receive a depository receipt for each and every purchase.
     
13. Can I get cash back from my account?    Yes. You  can  request  a  check  or  wire   transfer for  any  amount of equity in your     account  that is in excess  of  30%  without selling any metal. If your equity is less, then you will have to sell some metal.
     
14. How do I get my metal delivered?   We’ll arrange delivery for you upon receipt of full payment for your metal.  Delivery can be  made  by  insured  parcel  post directly to  your business, residence, or, to either a bank or private depository of your choice.
     
15. Do I have to take delivery or can I sell it?  You don’t have to take delivery. You can sell it at a moment’s notice, which is the beauty of our program. Your financed balance will be paid in full and your equity can be credited to your account.  A check can be sent to  you or a wire transfer sent to your bank within 72  hours as an alternate.    
     
16. What happens if the market moves against me?   If your equity drops below   12% ,   you will have  an  equity  call.    You  will  be  asked   to  add   cash  to  your  account  to  bring   it  back   to  a minimum of   15%  equity . Should  you not want  to   do  this,   you  may  sell  part  of  your holdings  to cover the deficit.  In the event that you cannot be reached  to make a decision about your equity call, the lending institution reserves the right to sell part of your holdings to bring your account value back to a minimum of  15%. LBCGold will attempt to contact you if your equity drops to 17% in anticipation of a further drop in the market. ( if this occurs during regular business hours ) Customer will be advised that his equity is diminishing and does he want to send funds to protect his position. In some volatile situations where there is a dramatic overnight price fluctuation, LBC may not be able to counteract  the results of an equity call. One may occur during a weekend or before weekday business hours which would be beyond our control.  
     
17. What does “bid”, “ask”, and “spread”  mean?   For our counterparty(ies) to make a profit, they need to sell at prices higher than they buy for, called the “ask”.  Conversely, the price that they are willing to buy metal for,  is called the “bid”.  Typically the “ask” Is a higher price than the “bid”. The difference is called the “spread”. Spreads can vary between 1 ½% to 6% depending on the metal and market conditions.
     
18. Can I take a short position?  No. Our program does not allow it. 
     
19. Explain “…trade free for 5 years”:  Funds used to actually buy  your metal, exclusive of commissions and fees, can  be traded commission-free for 5 years (which is the maximum term of the account agreement). If you exit that  market with a profit to buy into another market, you will be charged commission only on the profit made from that trade. Or if you use excess equity from your existing  trade to buy additional metal, a commission is charged. If you “cash-out” of the market, then re-enter at a later date, that is treated as a new trade.
     
20. Can anyone open an account?  No. You must have an annual income of $25,000  dollars or more and, at least  a total net worth of   $75,000  dollars. Otherwise, we do not feel that you are a suitable risk investor in the precious metals market. We do not recommend investing more than 20% of your total net worth in precious metals.
     
21. Can a friend or relative fund my account?  The name and address on your check, or the name on your U.S.P.O. money orders  or wire transfer, must correspond exactly with the name and address on your account.
     
22. What documentation do I have to furnish? You may establish your account by submitting no more than our New Account A pplication documents; completed, signed, and dated, along with your personal check, U.S.P.O. money orders, or wire transfer. You will be required to also send us a valid copy of your drivers license, passport photo page, or other photo identification. The photo must be legible and the address current. Without one of these identifying documents on file with us, you will not be able to make subsequent trades, receive cash refunds, or access your account on-line.
     
23. How much can I invest?  That is entirely  up to you. However, our recommendation would be that you invest no more than  20%  of your total net worth in precious metals