Forex Magnates reached out to Bullion Capital to talk with Tom Coughlin, CEO at Bullion Capital, about the company’s disruptive approach to precious metals trading and well as the unique prospects of gold in today’s markets. Mr. Coughlin’s full length interview can be read below.
1) Can you describe the services Bullion Capital provides and what makes your organization unique?
We have developed the MetalDesk2 exchange platform that enables traders and investors to buy, sell and store spot allocated physical precious metal such as gold, silver, platinum and different products within those metal groups, including bars and coins and in various locations globally. Our global trading locations are known as trading hubs and includes trading, storage, and delivery points for clients to vault and deliver their metal investment. Currently we have trading hubs in Sydney, Singapore, Hong Kong, Shanghai (Free Trade Zone), Bangkok, London, Zurich and New York, with Istanbul and Dubai slated for future expansion.
There are many ways to trade gold, but what sets our company, Bullion Capital, aside from all the others is that we do not deal with paper metal, only allocated metal and for this we have developed a centralized electronic platform that enables our traders to find the precious metal of their choice, physically purchase it and take full ownership on that metal, including having it delivered or vaulted. This is very unique and offers the investor full control and ownership of their investment.
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2.) What is the inspiration or rationalization to launch Bullion Capital?
Back in 2008 I tried to get into buying precious metals. I called up and sat on hold for roughly two hours. Having waited for a while and finally connected, it became apparent that the buy/sell spreads at the time were going to be up to 15% for a kilo bar. This was simply not a viable investment option with these spreads, in addition to transport, storage and a wide range of the specific mechanics involved with the handling of the metal itself.
So I thought, there’s no such facility in Australia for wealth managers, stockbrokers, and online brokers to offer physical precious metals for their clients, which I saw as an opportunity. I decided to start putting together standardized systems, mechanics and rules, along with an automated platform for precious metal trading and roll it to brokers in Australia. This is really what we embarked on doing. Then we went out to liquidity providers, though this ultimately proved to be a hard feat given the existing market structure in place – then we realized that this is something very disruptive we are creating, though we were not going to receive universal support on our home soil.
So I jumped on a plane and went to Singapore for three weeks of meetings and realized the true appetite for such a service, subsequently developing from a domestic Australian vision to a global vision. We ended up traveling around the world, working with precious metals markets and industry participants. As such, we have developed a comprehensive marketplace and platform from scratch, while working with the precious metals industry.
To get to where we are now, we are commercializing the business and gaining some really good traction around the world from retail and wholesale providers. Our MetalDesk2 platform can be fully White Labeled and offers our partners the ability to diversify their product offering to their clients.