Tuesday, September 27, 2011

Australia's First Physical Bullion Exchange to Open Oct 24th


As The Doc is slammed today, and still slightly wary of cartel connections of this seemingly positive development, we issue a challenge for the first reader who is able to find the link to a Rothschild, Rockefeller, JPMorgan, or Goldman.

The Australian Bullion Exchange (ABX), Australia’s first physical bullion exchange, will begin operations on Monday 24 October.
The ABX is an Australian domiciled over-the-counter (OTC) spot market for investment-grade gold, silver and platinum bullion. The exchange is a principal-to-principal investment market formed through a member structure of finance and bullion industry participants.

The ABX will be an efficient and globally recognised OTC bullion market in Australia, making direct bullion ownership available to retail and institutional investors. Bullion will be bought and sold on the ABX through listed brokers, or Members. Applications for Membership are currently open. The ABX is currently targeting a number of large financial institutions to register as Members.

Thomas Coughlin, CEO of the ABX, said: “The ABX is an exchange for physical bullion, much like the ASX is an exchange for equities; it connects buyers and sellers of precious metals.

“Given the strength of the physical bullion investment market, a central exchange is critical to provide a fair and efficient marketplace for all participants. Australia is the second largest gold producer in the world; we should have a globally recognised exchange to accompany this position.

“Precious metals hold significant value as an investment asset class, but at the moment the holistic options for direct ownership of bullion are limited in Australia. The ABX strips away all financial engineering
to provide a marketplace that is simple, secure and highly accessible and, at the same time, improves competition and market efficiency.”

The market will be priced based on the real-time international inter-bank spot bullion markets in nine different currencies, eliminating pricing risk and providing transparency.

“We offer a holistic end-to-end facility for investors wanting exposure to precious metals based on world best practice quality assurance frameworks, security arrangements, technology systems and governance structures,” said Mr Coughlin.

Significant investment has been made in systems and technology to create a robust and reliable investment platform. The ABX will also offer custodial services for investors who do not want to store
the bullion themselves.

Brady plc, a leading global supplier of trading, risk management and settlement solutions to the metals, energy and soft commodity sectors, was recently selected to supply to ABX’s core
infrastructure system.

The ABX has adopted the London Bullion Market Association (LBMA) principles for assessing bullion, widely recognised as world best practice. This is supported by a rigorous audit regime provided by
global bullion inspection and audit leader, Inspectorate.

The ABX’s formal advertising campaign launches today.

Read more from ABX: