Bullion Market Issues
Physical bullion markets have a unique set of challenges and would benefit immensely from BCCX!
Archaic & Inefficient Market
Globally, bullion markets are very archaic and mostly trade over-the-counter (OTC) even in large centres like London & Dubai. This is largely outside of the electronic markets, usually over the phone, email or even in person! These manual systems are problematic, inefficient and costly. Phone dealing desks are costly and involve manually booking a trade, placing a physical order with a supplier, and hedging the trade. There is a strong need to transition to a global digital solution.
BCCX allocated tokenized gold bullion is an ideal solution for bi-lateral wholesale trading.
Siloed & Inefficient Market
Local physical markets are usually pretty siloed off from other physical trading centres which creates significant inefficiencies.
BCCX is global by design. A global platform would allow cross-border market participants improving access and liquidity.
Limited Resources
Many smaller market pariticpants would traditionally be limited to their local physical markets. This can mean worse pricing and liquidity for them.
BCCX's global reach and access means access to best pricing and international liquidity. This also opens up opportunities to arbitrage!
Barriers to Entry
Physical bullion markets are very difficult to access for the average investor. Most people are limited to paper alternatives or a handful of physical bullion providers.
BCCX removes barriers to entry, allowing you to manage your physical bullion, crypto & other investments all with one account!
Market Access
There is usually a long chain of intermediaries involved between precious metal producers (suppliers) and consumers (Jewellers, Manufacturers, Investors). This creates inefficiences and hindrances to open access.
What might a next-gen system look like? Think streamlined online tools, seamless order automation, and real-time data at your fingertips. Imagine connecting with global suppliers instantly, hedging risks with a few clicks, and saying goodbye to manual paperwork. That's the promise of a new era in bullion trading with BCCX!
BCCX enables direct access and interfacing between producers and consumers thereby transforming the physical market place.
Storage Fee (Negative Carry)
More a limitation of the physical nature of bullion, most dealers and service providers charge a storage fee which translates into a negative carry for investors
BCCX empowers you to own your physical allocated tokenized gold bullion, get paid a YIELD on your gold AND rewards you for owning, saving, spending your gold & silver - all with zero storage fee!
Paper v Physical Disconnects
For anyone familiar with the gold markets this has been a contentious issue. Physical premiums can vary depending on your location and liquidity.
By creating liquid markets in physical allocated gold & silver bullion, BCCX does away with the need for counterparty risk of paper gold. Improved global liquidity should also help reduce physical premiums!
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