Presentation at the 2013 Gold Investment Symposium in Sydney, 16-17 October 2013. Presentation given by Bullion Capital's Chief Executive Officer, Thomas Coughlin.

1. How the Gold Market works, what’s
changing and how to benefit
- Presented by Thomas Coughlin

2. Major Gold Markets
London - OTC Wholesale Market
• Spot, Forwards, Options & Swaps
• 90% Spot
COMEX - Exchange Traded Market
•
Futures & Options

3. Loco London Gold Market
LBMA
London Bullion Market
Association
Trade Association
The Fix
LPMCL
BOE
London Gold Fixing
London Precious Metal
Clearing Limited
Bank of England
Benchmark Price
Unallocated Clearing
Allocated Clearing
Price Set Twice Daily
Vaulting
Vaulting
Six Members
Central Bank
Custodian
Gold & Silver
Good Delivery List
Member List
Five Members
Arrange Conferences
Market Makers
Members
Members
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
6.
ScotiaMocatta
Barclays Bank
Deutsche Bank
HSBC Bank
JP Morgan Chase
Goldman Sachs
Mitsui & Co
Societe Generale
UBS
ScotiaMocatta
Barclays Bank
Deutsche Bank
HSBC Bank
Societe Generale
ScotiaMocatta
Barclays Bank
Deutsche Bank
HSBC Bank
JP Morgan Chase
UBS

4. What’s Changing?
A Global Repatriation & Hoarding
Gresham's Law:
Total Gold Demand, 2009 Q1 and 2013 Q2.
"When a government overvalues
one type of money and
undervalues another, the
undervalued money will leave the
country or disappear from
circulation into hoards, while the
overvalued money will flood into
circulation."
"Bad money drives out good".
What is the “Bad Money”?
Unallocated Paper Gold
35.06%
72.94%
HOARDING!

5. Global Repatriation
Hoarding
Partial Fungibility
London
EFP
Exchange Futures for Physical
Global
Repatriation
COMEX

6. The Wholesale Market - Present
Physical Flow of Gold
COMEX
LONDON
U.K. Gold Shipments Climb Eightfold as Metal
Seen Moving to Asia
- Bloomberg
UK gold exports surge tenfold this year
- Financial Times
Gold flows from Britain to Switzerland surge
in H1-Macquarie
- Reuters
797 tonnes exported from London in the first half
of this year.
An Estimated 10,000 tonnes total sits in London
At this rate all gold will have disappeared from
London vaults in just over 6 years!

7. A Proposed New Global Marketplace
A Global Loco Trading Hub Market with a Unified Vaulting Network for Allocated Bullion
Market Price
•Global Price Flattened
•Perfect arbitrage between
hubs.
Delivery
Mechanisms:
London
Toronto
Zurich
One
Global
Market
Dubai
•Worldwide
•COMEX
•TOCOM
•CGSE
•SFE
•DGCX
•SMX
New York
Clearing Banks &
Central Banks
•Worldwide - all time zones
•America
•Europe
•Asia
•Africa
•Middle East
Sydney
Singapore
Hong
Kong
Refiners, Mints
& Vaults
•Worldwide
•America
•Europe
•Asia
•Africa
•Middle East

8. Wholesale Market Comparison
London Market
Global Market
London price
Global market connecting local physical markets
Unallocated
True global price + True local prices + Flattened Global Price
Effective unlimited supply - Part of fractional banking system
Allocated – difficult to manipulate
Investor holds counterparty risk against custodian
Finite supply – placing upward pressure on gold prices
Expensive transportation costs
Investor holds legal title
Only trading and clearing during London time
Negligible counterparty risk
Only wholesale lot sizes – Market not available to private investors
Can store gold locally in home region
Organically dying market
Minimal transportation costs
Organically evolving market
- Presented by Thomas Coughlin

9. What is Bullion Capital Doing?
Bullion Capital Limited (BCL) offers a loco trading hub physical bullion market, with an online
trading platform for precious metal traders and investors.
BCL – Similar to above proposal
ABX – Same as the above proposal
Australia
Global
Live!
Soon!
Affiliated
Global
OTC Wholesale
Late 2014 – Early 2015

10. Are we mucking around?
•
•
•
•
We’ve spent three years collaborating with industry specialists.
We’ve liaised and done board room battle with over 500 bullion market participants from the top down.
We’ve internally developed the unique systems, mechanics and technology to bring this market together.
We’ve got brokers, dealers, platform providers and SMSF administrators already utilising the BCL platform.
There is overwhelming support for this Global Market.
ABX Advisory Committee
Name
Position
William Purpura
Managing Director, Great Lakes Global Limited and
Chairman of COMEX, Boards of Governors
Dale Zhu
Deputy Head of Global Commodities, Bank of China
International
David Govett
Head of Precious Metals, Marex Spectron
Grant Williams
Portfolio and Strategy Advisor, Vulpes Investment
Management
Paul Burton
Consultant to Hinde Capital
Ned Naylor-Leyland
Investor Director and CSI, Cheviot Asset Management
Limited
Michael Hadley
Managing Director, John Galt Trading Consultants
Christopher Olson
President and CEO, Treasure Island Coins Incorporated

11. BCL Australian Market Offering
1) A Private Client Service – Closing Soon!
2) Introducing Broker Service
Allocated Physical Bullion
Stored in Australian vaults, not a paper contract.
Withdraw your bullion at any time. Retain complete
ownership and control over your investment.
Unimaginable Security
Locally stored and insured by Armaguard, verified by
Inspectorate, audited by BDO. Simply the most secure
physical bullion investment solution.
Cost Effective
With prices provided by multiple market participants,
avoid dealer spreads and benefit from MetalDesk's
exchange based trading platform.

12. Opportunity – How to Benefit
•
Sign up as a client or Introducing Broker and Support us with our mission of implementing this revolutionary new allocated
global bullion market and help pave the way of the future.
•
Should we collectively succeed, there will be an abandoning of the current archaic London paper system and a conversion to
a highly efficient allocated system.
•
This will place enormous upward pressure on the gold price and all precious metal investors will benefit.
•
Further, simply enjoy all the other benefits BCL has to offer through highly efficient online exchange trading platform.