Monex Precious Metals is facing an attempt to pull the company in to a court room. According to Monex and it’s customer agreement, it should be handled by arbitration, which is scheduled for next year concerning the matter.
Keep an eye on this situation if you have money with Monex. Due to this, a spotlight is now being shown on their past concerning non favorable issues. If they are smart enough to side step the IRS and confuse them, they will be smart enough to handle this, and any other lawsuit thrown their way in the future. However, with this much attention from government entities, it may be in investors best interest to keep an eye on their own money and make an educated decision about the next move for themselves.
The report in the LA times paints monex as a snake oil sales firm. Not that we are defending their practices if the claims are true, but, individuals do have to take responsibility for their own ignorance.
A trade in precious metals can not be made without your consent, and your consent is recorded before every trade. If you are not sure what is going on, don’t agree to it. It really is that simple… If you have ever had a trade placed with your money that you did not consent to, just call the local Attorney General for whichever state the precious metals firm operates in, and they will be happy to help you. But, they have to have done something wrong. Losing money in a volatile market does not constitute wrong doing. If you have given your broker consent to trade your account, which is recorded as well, you will not have much of a leg to stand on.
Monex terms and agreements are very well laid out, they tell you exactly what they will be charging you for in plain english. Be sure you know what you are agreeing to when being recorded, and you will be just fine.
The article goes on to say that they trick people in to investing with leverage. Not sure how this would happen. If you know you are investing $25,000 and the compliance call states that you are purchasing $75,000.00 worth of metal, the other $50k had to come from somewhere.
Read the LA times article here;
Learn about Monex and the IRS here;
One Big Dropped Ball – Monex agreement with the IRS
Leverage can be a dangerous animal, but it can give you profits you would have never dreamed of attaining with your own resources. Partnering up with the right firm can be very beneficial with a leveraged account, as long as the metals firm knows how to utilize a leveraged position. A great way to look at leverage is through a vehicle perspective. An inexperienced trader with a leverage account is like placing a sixteen year old kid behind the wheel of a Z06 Corvette. On the other hand, put a trained driver behind the wheel of the same car, and you will have experiences that you will be talking about for the rest of your life, in a positive light.
We have recently wrote about calling metal home, and that being the true test of any dealer you may work with. Any firm that is suggested here on PreciousMetalNews.com must have the investors best interest as a top priority, if not, they will not be featured, nor spoken of here.
There have been many issues rising with precious metals firms, Goldline most recently and we are getting a lot of information out of Florida as well. We will be dedicating some time to this subject in the near future.
Do not let the bad apples allow you to be scared out of profiting from the largest transfer of wealth in our lifetimes. History is repeating and gold is revaluing itself as I type. Do your homework and find someone you trust.
The firm we have partnered with will contact you if you complete the form to your right. They do encourage physical delivery of metal, and offer leverage programs for investors that like big returns.
Precious Metals need to be acquired, unfortunately it will bring out the cockroaches due to the demand. We will have a list of questions that you must ask every metals firm you consider dealing with soon.