Why Use a Global Allocated Bullion Exchange?
In the physical bullion trading industry, the majority of Western investing institutions and private individuals will only have the limited benefit of access to 1-2 precious metals markets; predominantly New York and London.
Limited market choice (irrespective of sector) invariably results in paying over-the-odds on a narrow selection of products. Investors need to have access to a wide variety of markets and products so that competitive market forces provides for true value investing.
Furthermore, as ABX Allocated Bullion Exchange encompasses markets that span 7 countries across 4 continents, investors can benefit from trading potential price arbitrage due to differing local market conditions.
Institutions and brokers can take advantage of our allocated bullion solutions that allow them to seamlessly integrate with the exchange using our full brokerage trading platform that they can then offer downstream to their own clients.
The Allocated Bit
Many investors that successfully manage to gain access to the bullion markets will buy a precious metal such as gold bullion but not realise that it is in an unallocated form. Unallocated does not necessarily mean that the bullion was physically bought and stored for you. In fact the bullion will be encumbered by a 3rd party and you will be classified as a creditor and not the direct owner of the bullion.
Allocated means that for each unit of bullion bought by the investor, a corresponding unit of real physical bullion exists in the vault that is wholly owned by you alone and you retain direct title to that asset with no-one else having a claim on it (i.e. unencumbered by a 3rd party).
The 'Allocated' part of the exchange is a critical feature of the ABX Allocated Bullion Exchange and an incredibly important benefit to the investor because it mitigates 3rd party risk and gives you the full wealth preservation benefits that physical bullion provides.