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The Midwest Bullion Exchange is a gold and silver exchange launched in Chicago in December 2017. It's unique in several ways. For one thing, it's the only exchange of its kind to launch in the U.S. this century. Hopefully, more will follow— because exchanges are an important part of any metals market and help improve transparency and price discovery for precious metals.
We have compiled some of the best current reviews of MWE to help you get acquainted with this new exchange.
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What Is the Midwest Bullion Exchange?
The Midwest Bullion Exchange (MWE) is an online precious metals exchange that allows customers to trade gold and silver bullion with one another and store their metals at the exchange's Chicago warehouse.
MWE is very different from other futures exchanges in that it deals with precious physical metals. That means that when two parties agree to trade through MWE, they have to go to a warehouse, pick up the metals, and transfer them between them, rather than just entering the trade and settling it through paper contracts.
MWE only deals in silver and gold bars, not coins. The minimum trade size on the exchange is one-tenth of an ounce of silver, worth about $0.80 at current silver prices, and one ounce of gold, currently worth about $605.
How Does the Exchange Work?
If you want to buy gold or silver, go to the "sell" section of the exchange's website and post the amount of metal you want to sell and the price at which you want to sell it. You can also post the amount you want to buy and the price at which you want to buy it. This is the primary method though you can also email the exchange.
The exchange also has a "bid" section where people who want to sell their metals go to post their price and the amount they want to sell. Similarly, people who want to buy metals post the amount they want to buy and the price they want to pay.
After posting your offer, the exchange will automatically email you if another seller posts a price lower than yours within 5 minutes. You can then choose whether or not you'd like to accept the offer. Alternatively, you can wait for someone to contact you about your posted price and then choose to accept or refuse their offer.
Who's Behind the MWE?
CEO and founder Kevin Howard is the brains behind MWE. He's a seasoned entrepreneur in the metals industry, having founded and run several companies in the past, including the now-defunct Goldline. Howard was also involved in the run-up to the commodities boom in the early 2000s when gold and silver prices skyrocketed.
Howard sees the MWE as a way to bridge the gap between traditional precious metal exchanges and the crypto world. He believes that combining the best of both worlds will make things better for everyone. The MWE is a subsidiary of the Commodities Financial Corporation and is headquartered in Chicago.
How to Join and Trade on MWE?
To join the MWE, you'll need to first be approved by the exchange. You can apply on their website. Once you're accepted, you'll need to submit payment for your membership.
MWE charges $199 per year for its basic membership and $399 for its premier membership. You'll need to then send your metal to the exchange's Chicago warehouse. The exchange will then hold your metal in a separate account and give you a receipt for it. Once you have your receipt, you can begin trading on the exchange.
Pros & Cons of Launching an Exchange with Physical Assets
Commissions and Fees
The MWE charges a commission of 10% on all trades. This is pretty high by industry standards, where exchanges usually charge 2-3% on most trades. However, the MWE charges a smaller fee if the two parties trading on their exchange agree to do so without a third party (i.e., they trade OTC or "over the counter"). The MWE also has a $250 minimum fee per transaction, much lower than what's typical for other exchanges (e.g., the CME's minimum is $4,000).
Is Buying Through MWE worth it?
An online exchange is a great way to go if you're in the market for a long-term investment in gold or silver. Online exchanges are more convenient and cheaper than physical stores, where you might have to wait in line or pay a premium for immediate service.
The MWE is especially convenient since you can buy and sell metals without physically going to a store. You can also see prices and other metrics at all times and easily research, compare and select the best deals. In short, an online exchange like the MWE is a great way to go if you're looking to invest in precious metals.
The MWE is a great way to invest in precious metals, especially gold and silver. The MWE makes it easy for you to buy and sell metals on the fly, and it's not hard to use. You can also use the MWE's price charts to see how the metals are doing over time, which can be a helpful tool for you as an investor.
In short, an online exchange like the MWE is a great way to go if you're looking to start investing in precious metals.
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