Terry Hanlon, president of one of the leading international precious metals dealers, Dillon GageMetals, spoke at the Master Coin Conference 2014 in Vienna, Austria, on “The Changing Landscape of the Bullion Business in North America” on June 18.
In his presentation to professionals from the international precious metals community, Hanlon addressed the current bullion market in North America, its transformation over the past decade, and the opportunities and challenges ahead.
The marketplace for retail bullion transactions is rapidly changing with the addition of new dealers. Technology and innovation are changing the business model for many retailers by bringing margins down and increasing productivity and efficiency. Digital technology is also improving price transparency, in real time. All of these benefit the customer.
“In North America, investors tend to prefer domestic products and their decision is often driven by price,” Hanlon noted. “At present, baby boomers are the dominant buyers. A major challenge is attracting a new generation of investors. Younger investors are typically inclined toward internet-based transactions, compelling retailers to develop online sales portals.”
In the digital age, online trading platforms are changing the industry by providing access and benefits never before available to the global marketplace. Extending the trading day and improving order fulfillment are key benefits. Hanlon advises that “utilization of digital trading platforms can assist new dealers whose trading and market knowledge may be underdeveloped.”
Dillon Gage established Digital Metals in 2012 to deliver advanced tools and technologies to help dealers become more successful. The business unit offers cloud-based solutions for physical precious metals trading. “Our Digital Metals Platform allows dealers to connect their businesses in real-time to Dillon Gage as a global market maker,” Hanlon explained. “We've created solutions for dealers, whether they need a new e-commerce site or they want to lower their business costs through better trading strategies and inventory management. Many dealers are adopting this technology because it allows them to focus more on the client relationship, increase cash flow and leave the trading and fulfillment tasks to Dillon Gage.”
Dillon Gage has been in the trading business for over 35 years and is an international bullion wholesaler and authorized purchaser for all major world mints. One of the largest precious metals dealers in the world, the company offers bullion and rare coin trading, refining services, estate liquidations, diamond trading and physical metal storage and fulfillment services in New Castle, Dela., and Toronto, Ontario.