Precious Metal Exchange

Unlike stocks, bonds and securities a precious metal exchange is not regulated by the SEC, therefore the reliability of the ‘exchange’ is often open to debate. Although stock in the corporation/exchange itself may be publically traded on one of the major exchanges such as NASDAQ or NYSE, precious metals are bought and sold through a corporation called an exchange. Before dealing with a precious metal exchange an investor should always check the stability of the company. If they are indexed on the NASDAQ or NYSE then that would be a good place to start. Also, the Better Business Bureau would have any investor complaints registered and it is also possible to find consumer reviews online. Following is a basic idea of how precious metals are traded along with a sampling of American precious metal exchange companies.

How Precious Metals Are Indexed and Traded
Precious metals are indexed on what is called a ‘spot market’ which trades commodities such as precious metals that are sold or bought for immediate delivery or perhaps in the very near future. They are traded based on spot prices which change throughout the day. In much the same way as currency pairs are traded, precious metal markets are open around the clock in their respective markets and transactions are considered to be OTC. Because prices rise and fall throughout the day, this is very fluid market that bears watching on a continual basis. The most common precious metals spot traded are gold, silver, platinum and palladium. Sometimes rhodium is on the list as well.

Monex Precious Metals
The Monex family of companies specializes in the gold market, although all precious metals are available to be bought and sold. Financing is available up to 80% of the purchase price through their in-house Monex Credit Company. Until the metal is paid in full it is stored with the company at a safe location but once you take possession of it you can either have it delivered directly to you or to a storage facility of your choosing. You could also opt to sell your metals back to the company at any point during a trading day. You receive official legal title when your precious metals are transferred to you.

Nucleo Precious Metals Exchange
Nucleo is administered by Bullion Direct, Inc. and has a real time order exchange that allows for the placing of orders 24 hours a day, 7 days a week. Included in their full line of services are the trading and authentication of the precious metal. Further, you can store your metals with them, purchase insurance or have them deliver your products to a depository of your chose. Operating what they call a ‘hub-centric’ business, Nucleo provides the ability to match orders with hundreds or thousands of others in the precious metals market yet maintain a singular trusted business relationship with Nucleo.

Precious Metal Exchange Corporation
The Precious Metal Exchange Corporation PRMX is a Nevada based corporation which trades on the Pink sheets. This corporation is a full service dealer of precious metals that offers both traditional and unique services to their investors. Their particular line of specialization is in safeguarding your assets in facilities that are secure. The provide 24/7 trading and access to both precious metals and currencies. All products carry certificates of authenticity to safeguard against counterfeit and fraud.

The precious metal exchange operates differently than conventional stock markets in that you are buying directly from the broker/dealer. This is why it is considered to be an OTC market and also why it is imperative that you verify the reliability of the precious metal exchange you elect to trade with. Other markets such as stocks, bonds, funds and other securities are subject to greater amounts of risk while precious metals are always considered ‘precious’ and world currencies are broadly based on them. Keep in mind that you should always research the exchange you intend to use prior to making that first transaction.

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