Complaint / review text:
The scam that Cache has been running for the past 6 years is that they are telling customers they are buying physical metal that is being stored at vaulted locations in the US. That infact is not true, for leverage accounts they are buying metal that is on margin from a company out of the U.S. Cache is telling you that you are buying a "portion" of a 1000 oz bar. That is not true as well. You are buying metal on margin, where you have only ownership on Cache's books. Cache would give out a fictious "commodity title transfer" telling customers they have been given ownership of metal at a vault. That of course was not true. Cache was charging customers a fee for storage when infact the metal was never stored and they themselves were never charged storage fees from the company they were buying metal from. They were charging an interest on leveraged metal meaning if you put down 10k you could buy as much as 30k worth of "physical metal". You would be financing the borrowed metal at a rate of 8.5%. Cache was also charging a "spread fee" of 3% on buys and sells Eg) if silver was trading at $19.00, they would buy it at $19.00 and give it to a customer at $19.57, similarly if you sold your metal you would get a price of $18.43. When you bought your " metal" on margin you always had to make sure it didn't fall below 25% or you get a margin call and would have to put up more money or they would liquidate a portion or all of your metal. If they were really buying physical metal, why when I wanted to take deliver they had to sell my position to buy physical bars, I thought I owned physical shouldnt I just pay the premium for the metal I wanted?
If if you ever wanted to try and sell your "metal" they would advise against even if the metal as falling. There were 3 main principles that would tell you not to sell. I was solicited by many telephone calls from a boiler type room.
Leverage metal only works when its a bull market. A market trading lower will only make you lose your money and have to put up more money.
I have asked cache a lot of questions but they still can't seem to answer these simple questions. The truth is Cache was only buying metal on margin (a piece of paper), the metal was never stored so we should have never been charged storage fees.