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.
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