One of the things we are called on is having the ability to make money from in-ground assets, e.g. gold mines, or any other asset that might be under the ground.
The bulk of owners with in-ground assets are "asset rich" and "cash poor". Since some of the assets can have important worth to them, many brokers all around the world believe you can take an in-ground asset, generate income from it, or put an insurance wrap on the asset, then generate money from it, and place the money funds into a private banking program. The truth of the affair and fact is, this suggested activity hasn't ever been done and the chance to get it done is zero. One the main reasons why is to actually know how much, in assets, is under the ground is tough to forecast. The other aspect, is finding the right insurance corporation to put an insurance wrap on the "predicted" assets which are under the ground. The other crucial part to realize is whether or not the asset owner was in a position to get an insurance wrap on the in-ground assets, it doesn't mean the wrap can be monetized. It might be a dodgy offer for the owner for the rationale an insurance wrap costs a serious sum of cash.
To further explain, the bank, or the one to monetize, the asset is taking a chance too. As you can clearly see, there are plenty of sides concerned, step-by-step, as to the reasons why this kind of private banking program will not work.
We're going to go thru it step-by-step all in next few article posts.
For further reading: Professional Commodity Trading