Australia's first bullion exchange set to open.

[stellaconcepts]

OK, please educate

If the current spot is set in NY or London, and supposedly most of the contracts are settled not by taking delivery, but for cash, wouldn't anyone who really actually wants to take delivery be buying from ABX instead (or any equivalent exchanges that are fully backed) ? Because this/these exchanges are actually backed by the metals.

Leading to my question is if everyone who truly wants to take delivery then heads for the ABX, and so is going to drive the price up (spot) which maybe different to the spot in the overseas market?

Is this scenario possible?

Would ABX's transactions reflected onto the global spot prices? Hope these are not dumb questions as I am still learning...

According to ABX's documentation - they use the current spot price for their pricing (Now, Tom did mention to me that true price discovery is something that may be on the cards in the future - but for now - their price is linked to the spot price)

But even so - ABX's transactions would still impact the international spot prices... demand is demand - no matter which exchange it comes from and metal is being gotten from somewhere where it otherwise wouldn't have had the exchange not existed.

Of course - exchanges are two edged swords, it allows buying during bull markets - creating a higher price - but it allows selling in the bear markets


I have a copy of abx's infomation memorandum... if anyone wants me to email it to them - email me at jc [ at ] stellaconcepts [ dot ] com - it was an interesting read - ud be suprised at how much goes into starting something like this...

 

[Perak]

Remember the firestorm caused in the forums 1month ago when I posted questions bout ABX (till thread was shutdown)? WIll be interesting...

 

[stellaconcepts]

Remember the firestorm caused in the forums 1month ago when I posted questions bout ABX (till thread was shutdown)? WIll be interesting...

I mussta missed that - anything you can repeat now its open?

 

[Big A.D.]

Remember the firestorm caused in the forums 1month ago when I posted questions bout ABX (till thread was shutdown)? WIll be interesting...

I mussta missed that - anything you can repeat now its open?

An employee of a related company signed up using a company email address and started trolling by asking if anyone here had any information about the group because it looked like an interesting business.