I’ve been in the precious metals business for 20+ years.
In the precious metals community it’s common to switch gold for silver or vice versa depending on the current gold to silver ratio.
During that time I’ve changed positions somewhat often between silver and gold and even occasionally platinum. But the issue is I either need to take my metals into a coin shop and get paid less than spot and then I need to swap my cash to the new metal and I pay a premium on the other end of the purchase as well. It ends up being around a 3-5% loss each time.
Or…. I can trade my precious metals on Facebook or Reddit but that is obviously a lot more dangerous. Sending your metals to a stranger and praying they send their promised metals as well AND that the metals aren’t fakes.
My business idea is this.. I want to create a business where I’m the middle man in the transaction. I would have a platform where people can place their trades and others can accept them. Upon acceptance, labels would be given to both parties to send their metals to me where I would perform a verification process. Holds would be placed in credit cards of each member of the trade for 2% of their metals value. Once I validate their metals I would upload documentation to their trade on the platform and if both metals passed, I would send their metals to the new owner.
Risks.. missing fake metals. The correct machinery would practically eliminate this risk. But there is always a risk here.
Getting the public confidence to the point where individuals are comfortable sending me large quantities of precious metals. This is my largest concern.
Wins for the traders.. trading metals with confidence. Verification of metals for only 2% is fantastic. And every % saved by the precious metals community is massive to them. They wouldn’t need to pay the normal 3-5%.
What do y’all think? Is it a winner or a dud?? TIA
submitted by /u/AshamedStatistician3
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