What Is Warrant
It is important for you to understand the relationship of a Warrant and Trustee arrangement. This would greatly help in making sure you understand clearly and can make the right decision when choosing to buy Silver Accumulation Plan (SAP).
The relationship of a "TRUST" is a very powerful arrangement.
Company A that sells Gold and Silver Accumulation Plan appoints Company B as its Trustee. Company B will act as Trustee for Company A.
When a customer purchase Silver Accumulation Plan (SAP) with Company A, Company A will instruct Company B, the Trustee Company to issue a Warrant to its customers for the amount of equivalent Gold, based on the prevailing Gold Spot Price. Warrant is backed by Gold.
As Trustee company they hold and secure an agreed amount of Gold for Company A and will issue a Warrant Certificate to customer whenever a purchase of Silver Accumulation Plan is made, until the amount of Gold hold by them has been fully assigned. It is then the responsibility of Company A to top up more Gold when Warrant has been fully assigned such that more Warrant can be issued for new SAP customers.
What is Security For Warrant Holder
In the event of bankruptcy or company closure, the customers who purchase the Silver Accumulation Plan can go to the Trustee company to collect Gold with their Warrant Certificate on or after the due date of the Warrant. Warrant means that ONLY the customer can claim Gold from the Trustee company. Creditors of Company A CANNOT go to the Trustee company to claim Gold, as Gold is set aside for the Warrant customers only.
In the event of both Company and Trustee Company folds up, the Warrant will then be administered by another Trustee Company being appointed.
The role of the Trustee Company is to ensure that "Nobody" (including debtors) are allowed to claim the money except the Warrant holder.
The relationship of a "TRUST" is a very powerful arrangement.
Company A that sells Gold and Silver Accumulation Plan appoints Company B as its Trustee. Company B will act as Trustee for Company A.
When a customer purchase Silver Accumulation Plan (SAP) with Company A, Company A will instruct Company B, the Trustee Company to issue a Warrant to its customers for the amount of equivalent Gold, based on the prevailing Gold Spot Price. Warrant is backed by Gold.
As Trustee company they hold and secure an agreed amount of Gold for Company A and will issue a Warrant Certificate to customer whenever a purchase of Silver Accumulation Plan is made, until the amount of Gold hold by them has been fully assigned. It is then the responsibility of Company A to top up more Gold when Warrant has been fully assigned such that more Warrant can be issued for new SAP customers.
What is Security For Warrant Holder
In the event of bankruptcy or company closure, the customers who purchase the Silver Accumulation Plan can go to the Trustee company to collect Gold with their Warrant Certificate on or after the due date of the Warrant. Warrant means that ONLY the customer can claim Gold from the Trustee company. Creditors of Company A CANNOT go to the Trustee company to claim Gold, as Gold is set aside for the Warrant customers only.
In the event of both Company and Trustee Company folds up, the Warrant will then be administered by another Trustee Company being appointed.
The role of the Trustee Company is to ensure that "Nobody" (including debtors) are allowed to claim the money except the Warrant holder.