An Australian-based exchange for precious metals is set to start operations next month and aims to allow buyers and sellers to trade online as well as offering storage in its Brisbane vault.
The Australian Bullion Exchange, scheduled to open on Oct. 24, will cater for trade in investment-grade gold, silver and platinum, Chief Executive Officer Thomas Coughlin said in an interview. The privately held exchange is targeting institutions as well as smaller investors, Coughlin said.
Gold futures advanced 1.4 percent to $1,663.10 an ounce in New York today after plunging 9.3 percent in the previous two days, the biggest such drop since 1983, as commodities fell to a nine-month low on concern that governments were running out of tools to avert a global recession, eroding the demand outlook. Futures reached a record $1,923.70 on Sept. 6.
“It’s a principal-to-principal market that will connect the bullion industry with the finance industry,” Coughlin said. The service will allow trading only through a phone link initially, with the online service to begin later, he said.
The start date was previously set for Oct. 4.