Quote from: BitSense Informatics on July 21, 2012, 02:00:30 PM

I posted my last reply just as TTBit posted their's, so let me comment...

Quote from: TTBit on July 21, 2012, 10:05:32 AM

It would be a lot of managing work. I considered doing this a while ago, but thought it would be a lot of work for no money and a lot of risk.

Yes, I agree with this.

Quote from: TTBit on July 21, 2012, 10:05:32 AM

Overall suggestions:
* Shares should trade at silver price, not with shipping. If you ship to warehouse, it is on you. If you xfer shares for silver, you must pay for shipping. Otherwise, you lose the economies of scale for transporting large amounts.
* Don't have a expiration date. More like an ETF with delivery.
* 1 share = 1/20 oz. Redeem/Issue in 20 share lots per oz.
* 1 oz bullion rounds and bars only.
* Need to have recent updates on silver proof of inventory
* Need a slush account to handle redemption and issues.

Yes, I'm beginning to think that the "Futures without expiration" or "ETF w/ delivery" idea may be the way to go. It seems like people may use this more to speculate on the price of silver rather than as a way to purchase bullion (which I thought would be the other way around). The great thing about GLBSE is that the listing rates are very reasonable so I could try a few different variations of these contracts and see what works the best.

Hi @BitSense Informatics
Nice to see more BTC precious metals! I can't speak for others but personally very interested in leveraging the BTC price to buy physical Silver when the ratio is good. Maybe you could consider something like this..

Investors/Speculators buy contracts denominated in BTC, you hold the BTC in guaranteed interest earning deposits that you compound and build up. You maintain liquidity so you can withdraw the BTC whenever you need to buy physical metal. For example: I could guarantee you BTC liquidity at short notice with the SILVER, GOLD, PLATINUM or RAREEARTH assets on GLBSE. My metals assets would earn you at least 3.52% a month before compounding the weekly interest. BTC lenders will pay you 1% a week or more at the moment for BTC deposits that you could have on call also. The BTC investments your asset has could sit in escrow accounts which may add more confidence for your investors.

Assuming the BTC price goes through spikes (just assuming) the cost of ounces and kilos could start looking pretty attractive for anyone who has committed BTC while it is low. Working out the prices you quote may be tricky. Maybe contracts could be filled early if the price is met.. 1 BTC to 1 Troy Oz of Ag within 12 months Tongue

You never know! Interesting to see what you come up with. If I can help provide any part of the liquidity you may need let me know.