Chris Olson

that provides for the efficient flow of precious metals and price discovery and trade execution and settlement.

It's a very well established system that operates internationally.

Yeah.

Yeah.

There's there's always a little bit of friction involved when it comes to stuff that's when you're moving precious metals or changing it from one form to another.

So the least amount of friction is going to be like unallocated pool positions in London.

But that's also the highest amount of risk.

So it's always a trade-off.

If you want to de-risk it a little bit, you'll get allocated bars.

But now that means that you've moved it out of the unallocated pool.

You've gotten serial numbers, and it's in another section of the vault.

That's going to have some friction.

But if you want to further take possession of those things, now it has to flow out through...

dealers and operators that can take possession of those big bars and now you're hiring armored cars, you're insuring it, you're financing the position that you have to carry for a period of time that costs you interest and opportunity costs with your capital.

And you'll have to then reformat the big bars into smaller coins and bars.

And that requires capital equipment and labor, other inputs.

And so there is friction to move it between the major sources of liquidity and the different markets.

And so as you're doing that, that's where actually the premium comes from.

So when you look at, say, the price of gold that you see on your TV screen...

The reason that you can't buy it for that price from a dealer of coins or bars is the product that they're selling, well, it's based on that price.