/biz/ - Business & Finance

just buy physical gold and silver and stop bein retarded
no one cares about your fancy online exchange idea

You're describing the COMEX and LBMA
The thing about setting something like that up is that you're dealing with physical commodities, so transporting and storing them safely costs money, and so does assaying them for purity so you don't wind up with a warehouse full of chinky tungsten. The way the COMEX deals with this is whenever a seller wants to enter their supply into the Eligible supply, they must pay for transport and assaying themselves. Only then can they put it up for sale in the Registered supply. If someone buys from the Registered supply, it moves back to Eligible and it just has their name on it. Then they may take physical delivery. If they change their mind and want to sell it again, it needs to go through the whole process of being assayed again, so most investors just let their metals sit in the vault. This is exactly what has enabled the COMEX and LBMA to perpetuate their fractional reserve scams and sell more paper contracts than they have actual metal - they know most people won't actually request physical delivery.
The bottom line is what you're describing is only feasible when done on a massive, massive scale. Just buy physical and hold it because the aforementioned scams can't last much longer.

>>52405903
You should read my post. It's pretty clear that I'm talking about buying physical. Kindly eat shit.

>>52406036
I'm just trying to buy at a better price by avoiding gold dealers. I don't enjoy paying huge premiums and so I'm wondering how that could be lowered. I don't want to trade P2P because it's sketchy, so I'd like a trusted third party to broker the trade.

It seems the "problem" with COMEX is their reputation. They must be absolutely sure that they're not brokering fake gold and also they are dealing in large amounts.

I think a platform that limits itself to small orders and small coins/bars from retail only and offered no guarantees (but still performed some basic assaying) would be good enough for me. Shipping silver is a bitch, but on a 1oz gold coin the shipping cost is negligible.

I would use this "gold exchange" the same way cryptotards should use crypto exchange, that is, send money, trade for gold, take delivery, hold at home.

The only difference with a gold dealer is that the broker is never the owner of the gold, so the broker isn't taking as much risk, and thus should take a smaller cut.

>>52406521
Just like a dealer, a broker needs to keep the lights on, so they need to make some sort of profit on each trade. Even if they're not securing a curated supply and instead are just connecting buyers and sellers like ebay, it still costs money to run the service. Even if shipping were free and fat boomers were willing to sell gold at spot, you would never be able to buy at spot because running the brokerage service just costs money.
I personally don't mind the premiums. I don't ever look at the exchange set spot price anymore because I only ever buy physical, and any time the spot price dips, the premiums rise to compensate, so the cost of physical metal in your hand has stayed the same or risen slightly. The premium for "junk silver," aka pre-1964 90% silver coins, is currently at an all time high of over 50%, and American Silver Eagles are regularly selling for close to 100% premium. There just isn't enough metal out there to satisfy demand, so if people are willing to pay the higher prices, then dealers are willing to sell at those prices, so the spot price is meaningless. Just go buy some physical, you won't regret it.

>>52405865
It’s called Reddit or Craigslist expect they take 0%

>>52405903
The absolute state of this illiterate benchod board

>>52406674
Stop telling me to buy physical, I already hold a pound of the stuff. I'm just toying around with the idea of reducing margins but y'all have that boomer mentality of never trying anything new "just do the way we always done it". You may be right that it may be hard to cut margins though. I'll have to do some estimates and see if it'd be a viable business.

>>52406715
>It’s called Reddit or Craigslist expect they take 0%
Yeah but I don't want to meet face to face with some unknown guy. It was fine doing that in the early days of localbitcoins, but I wouldn't do it today.

>>52407543
if it's such a good idea, how about you start this exchange yourself instead of bullshitting on biz like a faggot

>>52407605
Again, read my fucking post, I'm clearly saying that I'm going to run numbers to see if it would be a viable business. And for you information, bouncing this kind of ideas is exactly what biz is for. Get fucked.

>>52405865
What is the broker supposed to do for being a large advantage over directly selling online?
Do you plan to have a checking for fakes service? If not what is the advantage over selling the stuff on ebay?

>>52408001
yeah except you aint gonna do shit
you know it. i know it. we all know it
so just shut your dang mouth

>>52405865
Quit being jewish. If you want to buy something, buy it. If you want to sell something, sell it. You're nose shows when you try to be a (((middleman))) taking a (((cut))) from this transaction.

>>52408457
this

just buy PAXG

>>52406521
>You should read my post. It's pretty clear that I'm talking about buying physical. Kindly eat shit.
hey bud
you're describing the LBMA
it only works on large scale + internationally for a reason
go back and read what he wrote again but actually think about it this time

>>52406715
I found a guy on CL liquidating millions of dollars worth of PMs at spot. Shit was cash but he's sold out now.

>>52408127
>Do you plan to have a checking for fakes service? If not what is the advantage over selling the stuff on ebay?
Ebay is a shitshow. For something like the service I talk about you need more focus on participants reputation and yes as a third party all the gold going through would be checked with equipment that regular people can't afford.

>>52408516
If let me take delivery I would.

>>52408540
Yeah I'm gonna look at LBMA but I already it's an overly regulated and inaccessible market place for the big boys.

>>52406521
>i dont enjoy paying huge premiums
The premiums are not because of risk margins, the premiums are because of the high demand of physical, same for silver.
The part where they screw you is when they only pay you spot price for buybacks. They know full-well the spot paper market is a scam, but after all they want to sell gold and not gift you money.

>>52407543
You fucking nigger IT IS NOT VIABLE EXCEPT IF OPERATING ON A HUGE SCALE

>>52408674
>regular people can‘t afford
There you have another reason why dealers spreads are justified

>wants to start brokerage business
>can‘t into the simplest form of economic theory
There is an equilibrium point for the premium (very close to the premium you pay) because at lower premiums, people buy more and when premiums are high you have fewer buyers but make more per trade. It quite literally doesnt pay to be a greedy jew as a dealer because you miss out on revenue by setting high premiums. That said, i doubt you can come up with „THE gold broker innovation“ by running some numbers on an excel sheet and i hate yoj for having baited me to type all this shit out in 50 IQ terms

They look like edibles

>>52408722
The only way that competition would be feasible is if you became a "big boy" yourself with significant long-term investment and world-class economies of scale. It's possible, but it's literally a life's work rather than a basement business.

>>52405865
How much of this shit is zinc or copper inside?
Any anons ever cut into some?

eventually platforms offering this service will be built using chainlink unironically. allowing the purchase of crypto assets through any verifiable payment method and vice versa