About Us
Metals Investments Specialists
Physical Commodities Limited (PCL) specialises in Precious and Industrial Metal Investments and consists of a group of highly experienced commodity professionals who are dedicated to the proposition that all investment choices are not created equal and that investors should be given a viable alternative to traditional stockmarket investments in the form of commodity trading.
To that end, we have devoted ourselves to offering broker-dealers and investors a commodity investment vehicle that features limited risk and unlimited profit potential. With a varied range of investment products and markets available to us, we believe we have accomplished our goal.
Customers have the option of purchasing outright positions in the market and even taking 'Physical Delivery' if they wish. Another great option is to allow PCL to fund up to 80% of the total transaction value by providing 'No-risk' leveraging.
This plan allows investors to control up to 5 times as much commodity as they could with a fully paid transaction, without risking any more than a portion of their initial investment stake.
Whilst the investor is flexing their financial muscles with our leverage facility, he/she knows that their transaction is “open-ended.” Our plan is similar to an option in that there is a predetermined and limited risk; there is no expiration date to worry about.
More conservative investors may opt for a fully paid purchase, which is available through PCL. Whatever a qualified investor’s risk tolerance may be, from aggressive to cautious, we believe we have an appropriate commodity investment alternative that should be investigated by broker-dealers and investors alike.
Frequently Asked Question
Below are answers to questions we often hear about purchasing physical commodities and how our Product Range could be an appropriate fit with your specific investment goals.
How do I open a trading account?
It's simple CLICK HERE or call one of our Commodity Traders 08448 157 158
How would you define “physical commodity investing?”
Your trading account with us allows you to purchase the actual physical commodity, as opposed to buying a futures or options contract on an underlying commodity. By that we mean the investor buys the physical metal itself, in the form of either bullion bars or coins. If you choose to make a fully-paid purchase from us you will have the following options available to you:
- The commodity delivered to your place of residence
- The commodity stored in a depository selected by us
- The commodity delivered to a depository of your choice
I understand that when I open an Account I can elect to have PCL leverage a portion of the total purchase price, how does that work?
Once your new account is approved, PCL will accept an equity deposit from you, usually 20 to 25% of the purchase price, and will then fund the outstanding balance. Using leverage allows your account to purchase four to five times more of a commodity than you otherwise could in a fully-paid purchase, so your investment dollars work harder for you. Leveraging a portion of your purchase through PCL entails certain interest costs and service fees; you also have the option of arranging your own financing.
How does using leverage offered by PCL compare to trading commodity futures contracts?
With ourselves you invest in the actual commodity, not a piece of paper and there are no delivery dates or contract rollovers to worry about. Purchasing commodities through us is similar to purchasing a futures contract in that you can create powerful investment leverage; but unlike the futures contracts that have the risk potential to develop negative equity in your account, our leverage feature limits your risk to your equity deposit.
How does the leverage feature work?
When you agree to have PCL leverage a portion of the purchase price, the company does so through the establishment of a non-recourse leverage, which simply means that PCL takes the responsibility for any deficit that may occur in your account due to unfavourable market movement. If the markets in which you are invested move against you and the equity in your account falls below minimum levels, you have the choice of adding more equity to your account or closing the transaction at a loss. Should you elect to increase the equity in your account by depositing additional funds, the total amount of the funds committed to maintaining required margin levels in your account will be at risk. However, if you decide to liquidate your account, you cannot lose more than you have already deposited.
Your limited-risk feature sounds similar to trading options on futures. Is that the case?
Our leverage trading is similar to purchasing options on futures contracts in that you do have pre-determined, limited risk; but unlike options, your metals transaction has no expiration date! You won't be forced out of a trade because time ran out on you; since our transactions involves the purchase or sale of physical commodities, rather than an option on a “dated” futures contract, you have staying power to ride out adverse or sideways market movement.
I understand that PCL offers an innovative way to purchase commodities, but does it also offer a way for investors to sell commodities as an opening transaction?
Yes, you can invest in rising or falling physical commodity markets through PCL and have the ability to realize significant investment profits no matter which way the markets are moving. Through the use of the leverage feature offered by PCL, most of the commodities available from us can also be “sold” as new, opening transactions. Check with your Account Representative for full details. Volatility often means opportunity and you can take advantage of the effects of rapidly changing commodity prices whether they are moving up or down.
How do I Buy and Sell?
To buy and sell you simply call your commodity broker and give your instruction. This order will be confirmed and recorded. The order will then be given to a trader to execute on your behalf. You will then be sent a Commodity Transfer Notice to confirm the transaction for your records. You can also set the usual trading instructions, stop losses, limit orders etc.
Although all accounts are non-discretionary, PCL provide advice to clients on opportunities and strategy to maximise returns to compliment your own trading ideas.
Past performance is not necessarily a guide to future performance . Metals trading can be speculative , if you should have any doubts please seek independant advice prior to investing.