Trading in precious metals (precious metal facilities) is not suitable for everyone and involves many risks to which the customer may be exposed, whether it is an individual, a company, financial institutions or banks. The client must take into account the risks mentioned below and be aware of the risks before signing this agreement: precious metals banks participate in one or the other activity in the precious metals markets. Some of these activities include clearing, risk management, hedging, trading, vaulting and intermediary activity between lenders and borrowers. Almost all precious metals banks are members of the London Bullion Market Association (LBMA), an over-the-counter (OTC) market that offers little or no transparency in its activities. OTC markets are trading networks for financial products, commodities and securities that are not traded on a central exchange. Precious metals banks that lend gold to mining companies would normally do so to finance a project run by the company. A mining company would also lend gold if it withdrew a futures hedging contract in which gold that has not yet been mined or extracted from the earth is pre-sold to buyers. If some or all of its buyers expect a physical delivery of the gold bullion, the mining company would choose to borrow the gold from the bank, which will then be delivered to buyers on the other side of the maturity. Gold loaned to mining companies is usually repaid from the companies` future mining production. Global financial problems such as fear of state failure or a country`s financial collapse also lead to increased demand for precious metals.
This Agreement is subject to all the conditions mentioned below and these General Terms and Conditions of Sale, which contain the attached list, form an integral part of it: Although it is not equated with the holding of gold, investing in gold or silver through exchange-traded funds (ETFs) allows investors to access the precious metals market. . . .