In-ground Assets, Monetization, Private Banking, Part II

From our prior post we talked about why in-ground assets aren't pertinent to private banking programs. The reason why we are speaking about this is there are a lot who "claim" to be well placed to have a private banking program which should place the monetized asset into a banking program.

One of the features of in-ground assets has the power to "predict" how much is under the ground. Again, this would be a prophecy and not a factual statement, which leads us to private banking programs which are based mostly on factual money information which is obvious in an once a month bank account statement. How would somebody trade on a prophecy? They would not. 

The other feature we wish to recap is getting an insurance firm to "wrap" the asset. How is the insurer, to supply the wrap, going to give the owner a policy based mostly on a prophecy? They are not. Here is where in principle is sounds great, but in fact it does not work. There's not an insurance firm which will give the owner a policy, or "wrap", on an envisioned asset. 

Nevertheless on occasions if there's available true assets, e.g. the volume of gold, etc, exiting the mine, then and if, the owner is pleased to pay for the "insurance wrap", then yes, naturally, the insurer would be content to wrap the asset into a policy. This naturally, would cost millions of dollars for the owner and now the very next step "if" the owner of the gold mine has gotten this far, is to have the "wrap" or policy monetized into money. How troublesome do you believe that is? Stay informed, and we'll explain the unvarnished reality of monetizing an insurance wrap.

In-ground Assets, Monetization, Private Banking Programs

One of the things we are called upon is being able to monetize in-ground assets, such as gold mines, or any other asset that may be under the ground.  The majority of owners with in-ground assets are "asset rich" and "cash poor".  Since some of the assets can have substantial value to them, many brokers throughout the world believe you can take an in-ground asset, monetize it, or put an insurance wrap on the asset, then monetize it, and place the cash funds into a private banking program.

The truth of the matter and fact, is this proposed activity has never been done and the probability to get it done is nil.  One the primary reasons why is to really know how much, in assets, is under the ground is hard to predict.  The other aspect, is finding the appropriate insurance company to place an insurance wrap on the "predicted" assets which are under the ground.  The other important part to realize is even if the asset owner was able to get an insurance wrap on the in-ground assets, it does not mean the wrap can be monetized.  It would be a risky proposition for the owner for the reason an insurance wrap costs a substantial sum of money.  To further clarify, the lender, or the one to monetize, the asset is taking a risk too.

As you can see, there are many facets involved, step by step, as to why this type of private banking transaction will not work.  We will go through it step by step throughout our blog/article post.

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Alternative Investmest Regulations and Forex

In the choice investment world, there are many markets, whether its private placement, managed futures, foreign-exchange or any other niche, one thing's certain, alternative investments are showing up everywhere with disinformation. With this trend now clear, the large issue is, why would you not broker alternative investments? Well, if you can follow the guidelines, brokering could be a rewarding profession. As you'll see, there's lots of money in investment brokerage, but there's also harsh regulation. Since you can't broker deals with insufficient education, we are providing the best info on alternative investment education to aid you in succeeding. To get you going, we'll review some of the basic legal facts for brokers, covering all of the major markets during the process. This will enable you to shield yourself and others while brokering, making your transactions more successful. Most vital, if you choose to broker non-public placement investments, you have to act within the law. First, you need to typically reach financiers indirectly without solicitation. This is terribly critical due to the hard laws connected with private placement programs. If you solicit for speculators before they ask about particular investments the reality is, you are breaking the law. To remain effective and legal, you need to often contact backers mentioning project finance as your most vital goal.

Once trust opens up the conversation and they request information, you can debate any investment you want. Also, when providing paperwork to an investor, a brokering agent you never send it. It should come straight from the program and the documentation will never state yields or commitments. By referencing yields either verbally or through forms, you are breaking the law again, and this time it much more serious.

 

If you'd like to become an introducing broker for a managed currency exchange investment, there are two routes you can take. First, you could become an introducing broker for a foreign exchange trader in the United States, earning commission for each banker you find. Though this sounds great to most, you have to have a license before it's possible to start soliciting stockholders. There is some studying, however it can pay off great in the ultimate analysis. Against that you can become an introducing broker for FX traders using offshore Forex brokers. Once again, you would be collecting commissions for banker referrals. By working with traders who exploit offshore currency exchange brokers, you are not subject to the laws in the States. This does allow you to earn residual payments, but the truth of the case is, accomplishing Forex shareholders can be extremely difficult if you're unapproved. Overall, whether you'd like to broker domestic or offshore Forex investments, you need to always keep the law under consideration. Though managed Forex is highly rewarding, one mistake can be drastic. If you make a decision to broker managed futures investments, you can take one of two routes. First, you can broker managed futures in the States, raising capital to earn commission. This requires a NFA license, which adds firm oversight into the picture. Though there are failings to having an NFA license, the reality is, authorized futures brokers have the capability to earn millions every year. For this awfully reason, it's frequently a good idea to get a NFA license if you are working in managed futures. Since the license is recognized by backers around the world you can raise never-ending equity if you're smart.

 

Against that if you choose to broker a managed futures investment without a license, the trader must be offshore. In this example, since you are working with an offshore futures trader , USA laws don't apply to you, unless you are working with residents of the USA. Remember, always keep the SEC on your side and comply with regulations and laws of the pertinent country.

 

Though it'd appear appealing to broker deals without regulation, actually it's stronger than it sounds. For more info about a NFA license. If you would like to broker investment related products, you have to go outside of your niche.

 

If it is REO's, private equity, hedge funds, loans or maybe more, there's always a deal to broker. Though you can become loaded brokering investments, you have to know one thing above all, the law. In each investment market, there are laws you want to consent to if you would like to attain success in business.

 

Do yourself a favor, and completely research your alternative investment niche before following it. The reality is, you may need a license, or else you will decide to work with private investments. Remember, alternative investments are good, but just like the rest in life, there are ground rules.

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Precious Gems and Private Banking Programs

The buying and selling of gemstones is harder than one would think. This is another market which is very hard to penetrate. We are not going to go into detail about the buying and selling of gemstones, but would like to relay how difficult it is to use gemstone product for a private banking program.

 

The most important part of using gemstones for a private banking program is the stones have to be of bank specifications. What does that mean? The stones have to be cut and polished, each stone has to be certified by a gemologist, and the stones have to have documentation from a Top World Bank. Gemstones in a non-bank vault do not qualify because the majority of the stones are uncut, or in laymen terms, they are not cut and polished.

 

What is the likelihood you will have gemstones from Top World Bank? Very slim. Anyone can take the stones and have them stored in a bank vault for security, but to have the Top World Bank issue a SKR, (Safe Keeping Receipt) is a different task. Why, the bank will not issue any documentation, including a SKR, if the stones are not “high” quality. Lastly, the stones being cut and polished, having bank specification quality, and issued documentation including a Safe Keeping Receipt has to total fifty million US dollars.

 

Any vault, like the Sarasota Vault, non-bank vault, or the like are stones which will have to be transferred to a top world bank, cut and polished, and receive bank specified quality which will cost a sum of money.

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Primary vs Secondary Market Banking Activity

As many of you have been learning about financial instruments and private security transactions nobody ever goes into much detail between the difference of the secondary and primary market.  The majority of deal making with brokers is within the secondary market, but many do not realize the difference between the two.

The primary market is the market which happens at the financial institutions or the Top World Bank's level.  Most of the people you deal with on a day to day basis do not have access to a Top European Banker to ask questions about financial instruments or private transactions.  There are advantages to primary market over the secondary market.  One of the key advantages of the primary market is predictability.  In the primary market and throughout the Top World Banks, they are able to predict the gain and/or loss ten or mores in advance whether it be medium term notes, currencies, or the like.  The primary market has safety for the client.  This is the similar to predictability.  If the Top World Traders are able to predict the outcome ten or more years in advance then safety of the transaction is an obvious.  The other aspect within the primary market is experience.  We would say any Top World Trader has been doing this type of activity for most of their life and have the correspondents (other Top World Banks) to work together.  The downside to the primary market is it is virtual impossible to penetrate.  You have to know or know of someone that knows of a Top World Banker that is experienced within this arena of activity.  Another illustrative example is the oil business.  The top players like Chevron, Exxon, and Shell are the primary market and anything else would be the secondary market.

The secondary market is exactly what it says it is.  It is second to the primary market.  The activity which takes place at the primary market level reaches down to the secondary market level or sometimes in finance mentioned as, the street level.  The main disadvantage of the secondary market is the amount of fraudulent activity.  Another disadvantage is the unpredictability of trading activity.  Traders in the secondary market cannot predict ten years out and beyond.  Secondary market traders can be from a top world bank, but most of them are not.  Think of it this way; why would a trader working in the primary market decided to go out on his or her own and work in the more unpredictable secondary market?  They wouldn't.  This is how some inexperienced traders that have done a few transactions end up in the secondary market attempting to make a lot of money off the client and putting the client at more risk than the primary market.  Also, this is the market where fraudulent traders can take off with the clients money, or have the client block funds in their bank account and nothing happens resulting in a waste of time and loss of little money, and worse case putting a bad taste in the clients thinking about this type of activity.  The advantage to the secondary market is it can be fairly easy to penetrate if you have a client with the money.  This same advantage comes with a disadvantage, a lot of fraudulent activity.  You can run in circles for years with brokers masquerading as buyers, sellers, and high net worth individuals.  To put in perspective, the secondary market is the internet market and the primary market is the relationship market.  We do not want to stick our foot in our mouth either.  The secondary market is a relationship market too, however, at the end of the day, you will found out that elusive secondary, grey, market is full of many individuals that do not understand the basics of this type of business.

While we have stated some negative information about the internet, we would like to state the internet is a great tool to prospect for new clients or more business.  Just keep your eyes open for anything suspicious and do not believe what everyone says. 

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Common Hazards for Brokers

There's common misappropriate utilization of terms like "broker, intermediary," and "self-styled commitment holder." the reality is, these aren't official terms in banking or finance, but such terms are used inside banking programs, and in their communication between one another. The issue with brokers is they claim to be someone with that title, for example "trader," but that does not invariably mean or guarantee anything. Anyone can call himself a trader, or a commitment holder, or anything. If somebody is attempting to buy and resell something, they are definitely a trader of a kind. This is a little out of the way and can be a poor example, but these positions can only be authenticated at the central bank level, or at a bank with an International Bank Account Number (IBAN). There will always be a broker introducing a client to the program.

The reason our banks can't solicit for these programs is that it is the law and neither can brokers, middlemen, or self-styled traders. Nevertheless a broker may know a customer with money, who knows another broker, who works in association with a program. We would like to point education and training in programs is different than solicitation for one.

Through correct education and training, a good broker should be well placed to screen potential customers by filtering the most promising candidates, and simultaneously, be well placed to without delay communicate with a banker through email to register the possible client.

Common hazards a broker or self-styled trader can meet during their own work in this business are:

• They have to be in a position to handle masses of clients before finding the best candidate.

• They typically get part of the truth concerning the client's funds at an initial stage, that may be found later to be infeasible, even after weeks or months of working on it.
• They usually have trouble qualifying themselves with new clients because they can't show any previous performance, or past contract, and the relationship with the customer is simply a matter of trust at an initial stage.
• There may be an extensive list of brokers and / or arbitrators between the customer and the banking program.

In this example, some brokers in the middle can destroy the deal by not giving the proper information to the customer, or to the banking program, and / or causing issues with the profit sharing agreements.

There might be a few levels concerned with the brokers: the nearest one to the banking program, also on occasion called the facilitator, is the most significant person.

This person ought to have a contact with somebody in the banking program. This business is simple if a broker has a customer with acceptable funds. You'd need a clear customer with funds for 30,000,000 or even more in a top world bank, and a broker in contact with a banking program. By "clear" customer, we mean a customer who can offer a real monthly bank statement, showing that they've a 30,000,000 equivalent in liquid money.

Nevertheless from a practical viewpoint, this is the ultimate situation that's so surprising, that most brokers won't ever see it in their life. We don't mean to deter you as a potential broker, but almost all of the clients generally have issues with their funds, they don't seem to be in full command of them, they don't wish to move them, the funds aren't cleared, or they're not cooperative enough to cope with the banking programs and their direct associates. Additionally, many brokers disguised as clients will show a bank guarantee, standby letter-of-credit, certificate of deposit, or any other instrument like a medium-term note, to make claims that they have the capacity to work with the banking program. Most of the time, the instruments, whether public or personal, are borrowed or leased instruments, and are infrequently fake. To conclude, the broker's job is an exceedingly nerve wracking activity. Any new candidate may have a tough time teaching himself before getting the right disposition. Disappointment is sure, and patience is always a virtue. One of the advantages of our services is to alleviate our own clients of the strain and frustration of trying to discover a customer or a banking program.

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Soft Offers Explained

There is no such thing as a soft offer, soft offers don't exist. All offers are liable to last approval, offers aren't reliant on final confirmation however quotations are, or request for quotations (RFQ's). This is a legal matter in contract law offer and acknowledgment are well outlined; offers indicate eagerness to contract on certain terms, the aim being that it shall become binding as fast as it is accepted by the individual addressed, the offeree. Offers must be accepted precisely as presented, without alteration. Any alteration is a counter-offer and destroys the first offer. This has to be accepted. However, requests for extra info and clarification don't represent a counter offer.

Now, it's right that under USA UCC or Uniform Commercial Code, there are some differences in how offers acknowledgment ties. The UCC permits definite expression of offer approval, or written confirmation of ad-hoc agreements, to represent valid approval even though further terms are mentioned or different terms from the primary offer or agreement are said.

Such extra terms are then treated as suggestions for addition into the governing contract and in effect become part of the contract unless the opening offer in particular boundaries acknowledgment to the offers terms or notification of objection to the such terms is presented in a fair time frame, and under certain other conditions. The conditions outlining an offer of sale include price, completion date, payment terms, and detailed fair outline of the service or product, including condition and quantities. Offers can be revoked before acceptance, so long as it isn't encompassed in a choice, by satisfactory communication to the offeree. You can literally write a credible offer with a Bic pen on a piece of paper if you wished to, and it might still be binding, even if that sounds a bit crazy.

 

Under USA UCC codes, and well as trade law as recognized by the EU and United Countries, quotes and offers are two separate undertakings and offers are binding under acknowledgment, where a soft offer would not make sense. Legally almost everywhere a quote is known as non binding (with a couple of minor exceptions in some scenarios, in certain domestic environments like the United States, in which explicit indication is given). For that reason there isn't any such thing as a soft offer, despite the odd use of this term by some traders and by law all offers are binding per and subject to the terms suggested.

 

Purchase orders are like offers in this regards. Offers generally are binding at time of acknowledgment. Under UK law such approval doesn't need to be suggested at the time of acknowledgment, legally it still is binding and under US law such approval does have to be suggested, once done it is jointly binding.

 

Either way an officially accepted offer is binding on all parties, in a similar way a contract is. This has to be accepted, offers create contractually binding conditions.

 

Plain and simple, soft offers don't exist, the word offer has particular legal definitions. Again, you can consult with any trade attorney to clear this up. This explains why there is no such thing as a soft offer. The phrase soft offer could be used informally in specific areas but this is a non standard use and thus evaded to stop confusion due to non standard terms.

 

Again, to recap by law all offers are legally binding thus actually a soft offer doesn't exist, while soft non binding quotations can and do exist. These details are crucial to understand, don't undervalue their significance.

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