How is new gold added into Vaultoro's market? Is it possible to arb overpriced Vaultoro gold by bailing gold in?
Provide a mechanism for traders to arb by depositing gold.
Ken Griffith commented
I agree that the lack of ability to put gold in is the major weakness in the vaultoro exchange. I've noticed that Vaultoro gold often trades above spot price.
But bailing gold in is expensive and complicated unless it is already from a trusted source.
I also see that Vaultoro does not want to be in the business of accepting fiat wire transfers.
If Vaultoro were to partner with a trusted gold dealer, who is allowed to bail gold in/out and credit the gold to specific accounts, then that dealer could accept wire transfers, as dealers already do. This would provide the liquidity and ability to arb, without violating the Vaultoro business model.