An Update from Bullion Capital CEO, Tom Coughlin

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A few weeks ago, we notified you about a brand new global, physical precious metal exchange that was being built with the expectation of eventually drawing interest and pricing power away from London and New York. Today, we have an update on the status of the rollout of this new exchange.

Our guest for this call is Tom Coughlin, CEO of both Bullion Capital and the new exchange called the Allocated Bullion Exchange. Here's a link to the Bullion Capital site: https://www.bullioncapital.com And here's a link to the landing page of the just-announced Allocated Bullion Exchange: https://www.abxglobal.com

Again, the ABX is not yet "live" and the launch has been pushed back a few weeks from late April to sometime closer to the middle of 2015. As Tom explains in this interview, it's not that the exchange isn't operationally ready or that Bullion Capital is succumbing to external pressures. Instead:

  • Since we first spoke last month, there has been a significant influx of broker applications and, in order to deepen liquidity, ABX felt it necessary to get as many of these firms as possible online prior to the launch.
  • The delay also allows ABX to spend additional time engaging the precious metals industry, including physical retail and wholesale dealers around the world, generating excitement and interest in the exchange.
  • Pushing back the launch date also allows ABX executives the time to conduct additional PR and media appearances as well as host global roadshows in an effort to build momentum for the launch.

As Tom goes on to explain, this new exchange will attempt to modernize and globalize a precious metals "market" that continues to operate under the standards and transparency rules of a different era. By connecting physical metal trading centers around the globe, ABX will seek to provide a relevant and efficient price discovery and physical delivery platform. In taking on this challenge, they deserve our support and our patience in their efforts.

We here at TFMR wish ABX all the best and selfishly hope that their efforts at reforming the global precious metals market are a smashing success. The sooner the Bullion Bank Cartel is broken, the better. In the end, we will all benefit from true, free and fair price discovery.

TF

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  85 Comments

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SubjectivObject
Apr 27, 2015 - 3:35am
LandownerThomas Coughlin
Apr 26, 2015 - 12:34pm

What about the Gold streamers?

Don't know if appropriate to ask.... but have you connected with the gold streamers like Sandstorm? They get monthly deliveries from their streams and royalties they need to off load... (not sure how that works) but as a shareholder I would like if there was a middleman element that could be taken out of the equation.

Thanks for what you are doing.... and for letting us peek behind the curtain.

Regards

Doug

4 oz
Apr 26, 2015 - 12:11pm

--- Steve St. Angelo (aka SRSRocco)

"...oh my God....we should be buying silver.....It's an amazing story what's happening......We are on Silver fumes! And people don't realize it.

--- Steve St. Angelo (aka SRSrocco)

Steve St. Angelo | Silver, Shale, September - It's Gonna Get Ugly
Apr 26, 2015 - 11:45am

Forex Brokers

Also, hint hint nudge nudge... With some of the largest online Foreign Exchange brokers in the world either on or coming on as members of our exchange, this direct interface makes us perfectly primed to do something in the currency space. There are many great ideas out there that fall short on effective execution. We have focused on strategic and sequential implementation.

Apr 26, 2015 - 10:47am

Wealth Managers

I forgot to say that with wealth managers we are now seeing some of them shifting or looking to shift clients holdings out of gold/silver ETFs into our market. It makes sense seeing we are much more cost effective and are a value added physical contract that can be delivered at any time. So we have our sights on the LBMA and GLD and the ETFs.

My feeling is that Comex or any other futures exchange will just start pricing off our underlying physical market. It's the immediate delivery unallocated London market that is responsible for price suppression in my view. The Comex and London are fungible (exchangeable for one another) making the leveraged contracts synced together and providing the ability for both immediate and forward delivery contracts to push and pull the price curve around. These price discovery forces would not exist in our market as we're one-for-one physical, which means the Comex would just have to price off us, which is the true old-school price discovery method and the way it should work. Forward delivery contracts will be priced on our immediate delivery contracts. I will also say that I contend that more and more exchanges will create futures contracts that will compete with Comex. Currently Comex has the only accepted delivery mechanism (even though it's obsolete and unworkable) and all other futures exchanges have no idea how to create delivery mechanisms. We provide the underlying physical market and the delivery mechanism for futures contracts to be priced on. If another futures exchange came along with our pricing and delivery mechanics they could break or severely impact the Comex.

Anyway all just food for thought.

Apr 26, 2015 - 10:22am

Thanks for all your very kind

Thanks for all your very kind comments.

Just to bring you all into the loop with our commercialisation strategy. As I have discussed, we utilised the Bullion Capital brand as the test platform to build out and test the robustness of our systems. What this enabled us to do is develop a track record for our proprietary technology, refine and streamline the efficiency of our systems/mechanics and stress test everything in a controlled environment. Further, it enabled us to organically grow and sequentially bring on a critical mass of brokers and liquidity providers.

A typical exchange that does a big bang launch must get investment, buy-in and commercial commitments from the banks to put volume through to launch and be successful from day one. Our organic growth strategy has meant we have been able to remain independent and are now ready to take the next step and publicly launch this global exchange and appeal to larger and larger organisations. We are about to dedicate significant focus to the producers, jewellers and manufactures that means we will be disintermediating the physical trade flow. Now that we have great liquidity we can offer a great value proposition to producers and once producers come into the market then everyone else must also come into the market. Connect producers up with end consumers (investors, jewellers & manufactures) then you create a true physical market that adds value to physical market participants. This is when I think that physical price discovery will take over and break the paper price forces.

Why? The institutional facilities are in place to provide value to the real institutional physical participants in the precious metals market. This physical market obviously presents an alternative to the current structure and I know it is an alternative that the physical market wants! Hence my call to action, if the physical market wants change and wants to cut out the bullion banks as intermediaries then our exchange does it. We will shift the price discovery mechanics from a market in effective unlimited supply to a market in very limited supply. Hence the upward pressure on price.

Regarding the growth of our member signups - We appeal to 3 key market sectors: 1) Physical Traders; 2) Wealth Managers; and 3) Online brokers. It has been a sequential process with all of them, but now we are reaching the largest in the world for all 3 sectors.

I attached our broker signup stats below. It’s worthwhile saying that the on-boarding of brokers has been largely limited to our internal resourcing, as a lot of work goes into getting each and every broker and LP live and launching/utilising our platform.

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

gldslv
Apr 26, 2015 - 9:41am

More exchanges the better

I just see a lot of positives with the ABX. They have multiple channel feeds and multiple jurisdictions. Examples of manipulation ala Comex are way harder to do and it would not have too be truly anonymous to be 10X better than anything out there now. We are talking the wealthy finally having more access to what was limited mostly to bbanks and their criminal friends. The wealthy worldwide are looking for anonymous collateral and in volume. If the attempt is to track the buyer or seller of many transactions in a worldwide crackdown of say terrorists, it would take cooperation amongst untrusting thieves. If BBank A tries to sell the price down using BBank B in a price fixing setup they run the risk of a third party taking real physical from them. Vice versa in a price run up (these are not futures!) in a Pump and Dump would be squashed with multiple jurisdictions selling into the buyers who are stuck with too much phizz to unload.

This is physical and the players can lose a real source of wealth that is not protected by sovereign fiat backing.

The important thing to hope for is that the exchange will show real price movement when fundamentals play out. Right now the Comex supposed adversaries in Asia are probably working off an agreement arranged by sovereigns to slowly let China in the western suppression scheme. Anything that can throw a wrench at this cozy arrangement is a plus for the 'gold in my hand' crowd.

James CrightonThomas Coughlin
Apr 26, 2015 - 8:57am

@Tom Coughlin / TRAC - Thank You

Thanks for your reply Tom - you are a total star - a true and brave star!

And I would expect nothing less from an Auzzie - feel bugger-all for the stuffy "City" bankster families. I take my hat off to you mate - and you have my undying support - especially in cocking-a-snoot at the fooking criminal international banking cartel (phrase stolen from Dr Dave Janda - who is another brave dude).

Tom, it is honest, brave and intelligent types like you who will - LITERALLY - save the World from these psychopathic banking 'families'.

Thank you - from the very bottom of my heart.

jc

Marchas45
Apr 26, 2015 - 7:13am

Great Responses Tom

Enjoyed reading your responses Tom as I said before, Good Luck in your endeavor and I'm sure everyone here at Turdville wishes you well on smashing the old system. Keep Stacking Yea I guess you are a Stacker. Lol

G-Rod
Apr 26, 2015 - 2:39am

Thanks

Thanks Tom for your time spent responding in this forum.

Good luck with your enterprise - it's great to see a fellow Aussie having a go.

Cheers G-Rod

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Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

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