๐Ÿ†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.

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Siloed & Inefficient Market

Local physical markets are usually pretty siloed off from other physical trading centres which creates significant inefficiencies.

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Limited Resources

Many smaller market pariticpants would traditionally be limited to their local physical markets. This can mean worse pricing and liquidity for them.

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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.

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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!

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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

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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.

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