System and method for trading distinct and identifiable portions of a physical commodity

Abstract

A method can include obtaining a physical commodity that is divided into one or more physical units. The method can further include storing the physical commodity in a secure vault. Additionally a map can be utilized to subdivide each of the one or more physical units into a plurality of segments. Each of the plurality of segments can be tangible portions of the physical unit that are distinct and identifiable. Subdividing each of the one or more physical units can render the physical units unaltered. Further the map can be utilized to assign ownership of the plurality of segments to one or more owner users. The method can additionally include receiving an instruction to transfer ownership of a particular segment of the plurality of segments from a particular owner user to a buying user and assigning in the map ownership of the particular segment to the buying user.

Description

FIELD

[0002] The present disclosure relates to commodity trading and distribution,and, more specifically, to a system and method for trading distinct andidentifiable portions of a physical commodity without altering the physicalcondition of the commodity.BACKGROUND

[0003] The background description provided herein is for the purpose ofgenerally presenting the context of the disclosure. Work of the presently namedinventors, to the extent it is described in this background section, as well asaspects of the description that may not otherwise qualify as prior art at the timeof filing, are neither expressly nor impliedly admitted as prior art against thepresent disclosure.

[0004] Physical commodities, such as precious metals, are mainly used forfabrication, for consumption, and as a store of value. In the present day,however, the historic functions of physical commodities as a medium ofexchange and unit of measurement of the value of goods and services havebecome largely replaced by deposit currencies. Such deposit currencies havecertain advantages over physical commodities, e.g., deposit currencies may beless prone to theft, easier to transport, and have a lower risk of forgery and / ordebasement. Nonetheless, some investors choose to own physical commoditiesas a hedge against volatility in stock markets, since over time they haveproduced similar returns as major stock indices without being correlated withthem, as well as for other reasons. Thus, there is a need for a system andmethod that reduces or eliminates the disadvantages, while maintaining theadvantages, of trading and storing physical commodities.SUMMARY

[0005] In some implementations of the present disclosure, a method oftransferring ownership of a portion of a physical commodity is disclosed. Themethod can include obtaining a physical commodity that is divided into one ormore physical units. The method can further include storing the physicalcommodity in a secure vault. Additionally, a map can be utilized to subdivideeach of the one or more physical units into a plurality of segments. Each of theplurality of segments can be tangible portions of the physical unit that are distinctand identifiable. Subdividing each of the one or more physical units can renderthe physical units unaltered. Further, the map can be utilized to assignownership of the plurality of segments to one or more owner users. The methodcan additionally include receiving an instruction to transfer ownership of aparticular segment of the plurality of segments from a particular owner user to abuying user, and assigning in the map ownership of the particular segment to thebuying user.

[0006] In further implementations of the present disclosure, a computingdevice for transferring ownership of a portion of a physical commodity isdisclosed. The computing device can include one or more processors and anon-transitory, computer readable medium storing instructions that, whenexecuted by the one or more processors, cause the computing device to performoperations. The operations can include utilizing a map that subdivides each ofone or more physical units of a physical commodity into a plurality of segments.Each of the plurality of segments can be tangible portions of the physical unitthat are distinct and identifiable. Subdividing each of the one or more physicalunits can render the physical units unaltered. Further, the map can be utilized toassign ownership of the plurality of segments to one or more owner users. Theoperations can further include receiving an instruction to transfer ownership of aparticular segment of the plurality of segments from a particular owner user to abuying user, and assigning in the map ownership of the particular segment to thebuying user.

[0007] Further areas of applicability of the present disclosure will becomeapparent from the detailed description provided hereinafter. It should beunderstood that the detailed description and specific examples are intended forpurposes of illustration only and are not intended to limit the scope of thedisclosure.BRIEF DESCRIPTION OF THE DRAWINGS

[0008] The present disclosure will become more fully understood from thedetailed description and the accompanying drawings, wherein:

[0009] FIG. 1 is a diagram of an example system for trading distinct andidentifiable portions of a physical commodity according to some implementationsof the present disclosure;

[0010] FIG. 2 is a functional block diagram of an example computing deviceused in conjunction with the example system of FIG. 1;

[0011] FIG. 3 is an example image of an example physical unit of a physicalcommodity according to some implementations of the present disclosure;

[0012] FIG. 4 is an example representation of a segment of a physical unit ofa physical commodity according to some implementations of the presentdisclosure;

[0013] FIG. 5 is an example map that subdivides each of one or morephysical units of a physical commodity into a plurality of segments according tosome implementations of the present disclosure; and

[0014] FIG. 6 is a flow diagram of an example method for transferringownership of a segment of a physical unit of a physical commodity in accordancewith some implementations of the present disclosure.DETAILED DESCRIPTION

[0015] Metals, and especially precious metals, were among the firstuniversally successful commodities to be used as a unit of measurement, amedium of exchange, and a store of economic value. These metals werecirculated initially in the form of irregular pieces of metal, and later as bars orcoins that had standardized shapes, weights, and values. Standardized units ofcommodities such as metal coins had obvious benefits, which resulted inprecious metals persisting as the most popular universally-acceptedcommodities to be used as store of value. Simply put, their relative scarcity,purity, divisibility / multipliability, portability, and resistance to damage made suchcurrency systems more sustainable in the long term. The Lydians and theChinese were the earliest societies to develop metal coinage, and did soindependently at around the same time in the 7th-8th centuries B.C. Theirinnovation catalyzed the use of metal coinage in other societies they touched inthe Far East, Near East, and Mediterranean. As time progressed, virtually allsocieties came to use coinage made of gold, silver, and base metals such asbronze for saving, exchange, and measurement.

[0016] The practice of minting precious metal bars and coins that havemonetary roles continues through today. There are, however, somedisadvantages when trading precious metals or otherwise using precious metalsas a currency. As mentioned above, physical units of physical commodities(such as precious metals) may be more prone to theft than other options, andcan be impractical to transport and use in everyday commerce. Furthermore,physical units of such commodities may be at a higher risk of forgery and / ordebasement when compared to other options. Thus, businesses and otherentities have attempted to provide the benefits of owning and trading physicalcommodities, while eliminating or reducing these and other disadvantages.

[0017] Precious metal exchange-traded funds ("ETFs") have emerged as apopular alternative to direct ownership of some commodities. An investor in aprecious metal ETF does not own any physical metal, but instead owns units ofownership in the ETF that, ultimately, owns the commodities, in this case,precious metals. Precious metal ETFs are usually funds or trusts that ownphysical precious metals and allow investors to buy shares or units in the fund ortrust in practice, the share or unit prices of such ETFs have proven to closelycorrelate to spot prices of the underlying precious metals. Thus, such ETFshave allowed investors to gain exposure to physical commodities, while loweringthe transaction costs associated with more traditional commodity purchasing andwithout requiring investors to buy or store actual physical bars, coins, or otherphysical units of a commodity.

[0018] ETFs, and especially precious metal ETFs, are perceived to havenumerous disadvantages compared to physical metals. For example, in somejurisdictions ETFs are considered securities, funds, or other financial instrumentsthat require anyone who sells them to the public to possess special licenses,which are difficult and costly to obtain and maintain in addition, in certainjurisdictions owning some ETFs has adverse tax or other regulatoryconsequences on the ultimate buyer of the ETF. Aside from regulation andtaxation, many investors shun ETFs in favor of physical commodity investing inorder to minimize their exposure to counterparty credit, operational, and otherrisks sometimes associated with ETFs.

[0019] Another way to invest in some commodities, namely in metals, is toutilize metal accounts, which allow investors to pay a vault company, acommodities trading company, a financial company, or other institution to storemetals on behalf of the investor. Metal accounts can be classified into threegroups: (i) allocated accounts, (ii) pool allocated accounts, and (iii) poolunallocated accounts.

[0020] In allocated accounts, investors / account holders own specificcommodity units in a commercial vault for a time and size-based fee. In somecases, the holdings of allocated accounts can be withdrawn for a fee. However,allocated accounts have numerous disadvantages. For example, administratorsof allocated accounts frequently impose large minimum investment requirementsthat are dictated by the size of the smallest practically available commodity unitsand by business reasons. Furthermore, in order for an investor / account holder totrade or transfer ownership of the assets in his / her account to a third party, thethird party must be willing to receive a portion of the holdings in whateverphysical condition those holdings are stored (a specific coin or group of coins, abar or group of bars, etc.). Thus, the potential values of the physical commodityto be purchased by a third party purchaser will be dictated by the size of thediscrete physical unit(s) of the physical commodity available, which placessignificant limitations on account holders' ability to transfer ownership of assetsheld in a metal account to third parties.

[0021] In pool allocated accounts, investors / account holders own a specificamount of a commodity, measured in some form of unit of measurement, e.g.,precious metals may be measured in ounces or grams. Institutions that managesuch pool allocated accounts maintain a sufficient amount of the physicalcommodity to cover 100% of the outstanding claims of the account holders in astorage facility, such as a vault, and cannot use the physical commodity for itsown purposes (e.g., selling or leasing the commodity). Additionally, the physicalcommodity may also be required to be segregated from other items in thestorage facility. Withdrawals from pool allocated accounts are typically madewith cash. However, an account holder may be permitted to withdraw actualphysical commodities, but only in the event that the value of such a withdrawal isgreater than or equal to the value of the smallest discrete physical unit of thephysical commodity available. Furthermore, pool allocated accounts havenumerous other disadvantages in some jurisdictions, pool allocated accountsare subject to more adverse regulatory or tax treatment than physicalcommodities or simple allocated accounts where specific commodity units arebeing stored for clients in addition, because there is no strict accountabilityabout the specific commodity units that must be stored to back the pool allocatedaccounts, it is easier for an institution that maintains such accounts tomisappropriate some portion of the commodities and to use them for its ownpurposes, which, if not remedied, can lead to a temporary or permanent loss ofvalue for the account holders.

[0022] A pool unallocated account is similar to a pool allocated account, withthe significant difference that the holding institution does not have to maintain asufficient amount of the physical commodity to cover 100% of the outstandingclaims and can use the physical commodity for its own purposes (e.g., selling orleasing the physical commodity). Thus, in addition to having all of thedisadvantages of pool allocated accounts, pool unallocated accounts can beconsidered to be fundamentally an unsecured liability of the institution thatmaintains the account, and account holders of such pool unallocated accountscannot accurately be described as owning a physical commodity and areexposed to substantial counterparty credit and other risks.

[0023] While the accounts described above may offer advantages similar toowning a physical commodity, they have numerous disadvantages, such asthose described above. The most significant disadvantages include loftyminimum deposits (typically thousands and sometimes millions of dollars) andsubstantial barriers to transferability. Additionally, in most jurisdictions there aresignificant differences between the governmental regulations applicable to thetrading of physical commodities and trading of accounts, funds, or other interestsin companies that own physical commodities (e.g., ETFs). In yet anotherexample, there are in some jurisdictions different securities and tax regulationsassociated with marketing / owning / transferring non-physical and non-specificcommodity interests that are generally adverse to investors, as well as todealers, marketers and other providers of such interests. Finally, owners ofinterests in pool accounts, especially pool unallocated accounts, are exposed tosignificant counterparty risks which do not apply to owners of physicalcommodities. For these and other reasons, there remains a need for animproved entity / mechanism / etc. for owning and / or trading strictly specific andphysical commodities.

[0024] The present disclosure describes a system and method thataddresses the issues described above, while combining the above mentionedadvantages of owning and trading physical commodities in their role to storevalue and as a medium of exchange. Further, the system and method canenable the use of a specific physical commodity (e.g., precious metal) - insteadof some institution's liability (accounts, deposit currencies, etc.) - as a unit ofexchange for economic transactions. The techniques of the present disclosurecan also offer the advantages of allocated accounts, as the physical commoditycan be safely stored in a storage facility (e.g., a vault or the like) and does nothave to be physically transported to settle a transaction. Additionally, the systemand method of the present disclosure also benefits from many of the safety andefficiency benefits of deposit currency without forcing users to cede the benefitsof physical commodity ownership.

[0025] The present disclosure achieves these goals through the use ofallocated commodity segments, where specific portions of physical units of acommodity (e.g., specific segments of precious metal ingots or bars) areunambiguously allocated to specific users / investors. Each segment is a tangibleportion of a physical commodity unit that is identifiable and distinct from all othersuch segments. Furthermore, while the segments may be separately allocatedto different users, the segments need not be physically separated from eachother, thereby rendering their associated physical unit(s) unaltered. Furtherdetails of the present disclosure are set forth below.

[0026] In order to simplify the description, certain terminology will be utilizedwith the present disclosure. Accordingly, a brief description of such terminologymay be beneficial to assist in understanding the present disclosure. It should beappreciated, however, that this brief description of terminology is meant merelyto assist the reader and is not intended to be limiting in anyway.

[0027] The term "dealer user" will be used to describe the entity that performscertain elements of the present disclosure related to obtaining, storing and / orassigning ownership of a physically commodity. The term "owner user" will beused to describe the entity that owns one or more segments of a physicalcommodity that are held by, or in trust for, a dealer user. The term "buying user"will be used to describe the entity that is purchasing or otherwise obtainingownership of one or more segments of a physical commodity from the owneruser.

[0028] It should be appreciated that these terms are merely labels, and aresomewhat amorphous. For example, in certain circumstances an individualperson may act as the described "dealer user," while an actual dealer (acommodities trading firm, a dealer in coins or other collectibles, a financial firm,etc.) may act as the "owner user" or "buying user" described. Additionally, oneor more separate entities may act in concert to act as a single "dealer user,""owner user," and / or "buyer user" as described. Furthermore, in some situationsan entity or entities may act as more than one of, or all three of, a "dealer user,""owner user," and / or "buyer user" as described, depending on the specificactivities analyzed by, and the perspective of, the viewer.

[0029] Referring now to FIG. 1, an example system 100 for trading distinctand identifiable portions of a physical commodity according to someimplementations of the present disclosure is illustrated. The illustrated system100 includes a dealer user 120, an owner user 140, and a buyer user 160.Additionally, a physical commodity 125 is illustrated as being physically locatedin a vault 130, which may or not be in the physical custody of the dealer user120. The physical commodity 125 can take any form of tangible commodity thathas economic value, e.g., a precious metal. The physical commodity 125 can bedivided into one or more discrete physical units 125-1 , 125-2, ... 125-n.

[0030] As indicated by the dashed lines, various communications,instructions, financial instruments, physical commodities, etc. may be freelyexchanged between these entities. At least some of the elements exchangedbetween these entities must be communicated, received, and / or generated by orwith the assistance of one or more computing devices, as further describedbelow. Accordingly, each particular entity of the dealer user 120, owner user140, and buyer user 160 as illustrated in FIG. 1 can include at least onecomputing device associated with that particular entity. Furthermore, the dashedlines should be interpreted to include both direct exchanges between entities, aswell as indirect exchanges between entities, such as electronic communicationsrouted through intermediate entities and mechanisms (such as through one ormore server computing devices over a computer network, e.g., the Internet).

[0031] Referring now to FIG. 2 , a functional block diagram of an examplecomputing device 200 is illustrated. The computing device 20 can include acommunication device 210, a processor 230, and a memory 250. Thecommunication device 210 can include any suitable communication components(e.g., a transceiver) for communication with other computing devices 270,directly and / or via a network 290. The processor 230 can control operation ofthe computing device 200 and can implement at least a portion of the elementsof the described methods. The term "processor" as used herein can refer to botha single processor and multiple processors operating in a parallel or distributedarchitecture. The memory 250 can be any suitable storage medium (flash, harddisk, etc.) for storing information at the computing device 200. The computingdevice 200 can receive communications and data from the other computingdevices 270. Further, although not illustrated in FIG. 2 , the computing devicecan also receive inputs from entities (such as the described "dealer user," "owneruser," and "buyer user") through various interfaces.

[0032] As an initial matter, the physical commodity 125 is obtained by thedealer user 120, and stored in a secure vault 130 associated therewith. In someembodiments, storing the physical commodity 125 in a secure vault 130 caninclude transferring the physical commodity 125 to a third party vault owner. Forexample only, a dealer user 120 can obtain ownership of the physical commodity125 from a third party (e.g., a mine operator, a refiner, a commodity trader, afinancial firm, or even another dealer user), whereby the physical commodity 125is physically transferred to the storage vault 130 of another third party. In somesituations, the same third party can be the transferor and the custodian of thestorage vault 130, such that obtaining the physical commodity 125 comprisesobtaining ownership of the physical commodity 125 without actually physicallytransferring the physical commodity 125. In other implementations, obtaining thephysical commodity 125 comprises obtaining ownership of the physicalcommodity 125 where the physical commodity 125 is in the physical custody of athird party that is not a party to the transaction.

[0033] Referring now to FIG. 3 , an example image 300 of an examplephysical unit 125-n of the physical commodity 125 is illustrated. The physicalunit 125-n is subdivided into a plurality of segments 3 10-1 , 3 10-2, ... 3 10-m(referred to herein individually and collectively as "segment(s) 310"). Each of thesegments 310 is a tangible portion of the physical unit 125-n that is distinct andidentifiable from all other segments 310. The combination of all of the segments3 10 together comprises the physical unit 125-n. Further, the subdivision of thephysical unit 300 into the plurality of segments 310 is not a physical separationof the segments 310, but instead a mapping of coordinates in a threedimensionaldescription or other representation of the physical unit 125-n thatdescribes each and every segment 310 while leaving the physical unit 125-nunaltered.

[0034] In some implementations, segments 3 10 can be described / defined byone or more segment planes 320-1 , 320-2, ... 320-p (referred to hereinindividually and collectively as "segment plane(s) 320"). A segment 310 can bedefined to be a portion of the physical unit 125-n between two segment planes320, or between a physical end 340 of the physical unit 125-n and a segmentplane 320. It should be appreciated that any manner of defining segments 3 10of a physical unit 125-n can be utilized with the system and method of thepresent disclosure. In other examples, a segment 310 can be described as aportion of the physical unit 125-n defined by a mathematical formula, and / ordetermined (specifically including determining by estimating with a high-degreeof accuracy) from a scan or other imaging technique.

[0035] In some implementations, the dealer user 120 can obtain an image ofeach of the physical units 125 in the secure vault 130, e.g., from an imagingdevice such as a three-dimensional scanning device or other hardwarecomputing device. The term "image" as used herein with respect to "an image ofeach of the physical units 125" is intended to include not only an actual image(such as obtained from an imaging device, e.g., camera or the like) of a physicalunit 125, but also any representation of the physical unit 125. From the obtainedimages, the dealer user 120 can generate, at a computing device such ascomputing device 200 described above, a representation 400 (see FIG. 4) foreach of the plurality of segments 310. Each representation 400 can beassociated with one 410 of the plurality of segments 3 10 and representative ofits associated segments 410. It should be appreciated that, while FIG. 4 showsthe outline of the remainder of the physical unit 125-n in phantom outline(dashed lines), the representation 400 can, but does not necessarily, include aphantom outline as shown.

[0036] The generation of the representation 400 for each of the plurality ofsegments 310 can provide a number of benefits. For example, some individuals(such as the owner user 140 and the buyer user 160) may feel more comfortableand / or secure in the feeling of ownership of a segment 3 10 of a physical unit125-n of a physical commodity 125 when they can actually "see" their segment3 10 separate and apart from the other segments 310 in the physical unit 125-n.Such a "seeing-is-believing" may make the ownership of the segment 310 of thephysical commodity 125 more tangible and "real" to certain individuals, while notactually requiring the physical separation of their segment 310 from othersegments 310 with its associated cost and difficulty. Additionally, therepresentation 400 may constitute evidence sufficient to prove to a regulatory / taxauthority that an owner user 140 actually owns a tangible, distinct, andidentifiable portion of a physical commodity 125, and not merely a partial interestin an undivided physical commodity 125. Thus, in some embodiments the dealeruser 120 can output, utilizing a computing device (such as computing device200) associated with the dealer user 120, the representation 400 associated witha particular segment to at least one of the owner user 140 and the buying user160.

[0037] Referring to FIG. 5 , in order to track the ownership interests of users,the dealer user 120 may utilize a map 500 (an allocation table, an ownershipregister, a ledger or collection of ledgers, or other record of ownership) thatsubdivides each of the one or more physical units 125-1 , 125-2, ... 125-n into aplurality of discrete, identifiable segments 3 10 . The map 500 can be stored inthe memory 250 (such as a database) of a computing device 200 associatedwith the dealer user 120. Alternatively, the map 500 can be in the control of oneor more third party map operators, which can include the dealer user 120 andthird party map operators. These third party map operator(s) can act to assignownership of each of the plurality of segments in the map 500 based oninstructions received from the dealer user 120. In this manner, the dealer user120 can utilize the map 500 by sending one or more instructions to the thirdparty map operator(s) to assign ownership of each of the plurality of segments3 10 in the map 500.

[0038] In the example map 500 illustrated in FIG. 5 , there is a segmentdefinition portion 520, an ownership record portion 540, and a physical unitidentifier portion 560. The segment definition portion 520 can includeinformation (such as a representation 400) sufficient to describe one or more ofthe plurality of segments 310. The ownership record portion 540 associateseither directly via a description 545 or indirectly the owner user 140 to one ormore segments 310 defined by the segment definition portion 520. The physicalunit identifier portion 560 can include information sufficient to identify thephysical unit 125 associated with the segment 310, such as a serial number 565or other identifying characteristic of the physical unit 125. It should beappreciated that the illustrated map 500 is one example, and other forms of themap 500 are within the scope of the present disclosure.

[0039] Referring now to FIG. 6 , a flow diagram of an example method 600 fortransferring ownership of a segment 310 of a physical unit 125-1 , 125-2, ... 125-n of a physical commodity 125 in accordance with some implementations of thepresent disclosure is illustrated. At 6 10 , a physical commodity 125 that isdivided into one or more physical units 125-1 , 125-2, ... 125-n can be obtained.At 620, the physical commodity 125 can be stored in a secure vault 130. A map500 can be utilized at 630. The map 500 can subdivide each of the one or morephysical units 125-1 , 125-2, ... 125-n into a plurality of segments 310, whereeach of the plurality of segments can be tangible portions of the physical unit thatare distinct and identifiable. As described above, subdividing each of the one ormore physical units 125-1 , 125-2, ... 125-n can render the physical units 125-1 ,125-2, ... 125-n unaltered. The map 500 can be utilized to assign ownership ofeach of the plurality of segments 310 to one or more owner users 140.

[0040] Furthermore, at 650, the method can also include receiving aninstruction to transfer ownership of a particular segment 310 of the plurality ofsegments 310 from a particular owner user 140 to a buying user 160. Uponreceiving the instruction, the method 600 can include assigning (at 660) in themap 500 ownership of the particular segment 3 10 to the buying user 160.

[0041] Example embodiments are provided so that this disclosure will bethorough, and will fully convey the scope to those who are skilled in the art.Numerous specific details are set forth such as examples of specificcomponents, devices, and methods, to provide a thorough understanding ofembodiments of the present disclosure. It will be apparent to those skilled in theart that specific details need not be employed, that example embodiments maybe embodied in many different forms and that neither should be construed tolimit the scope of the disclosure. In some example embodiments, well-knownprocedures, well-known device structures, and well-known technologies are notdescribed in detail.

[0042] The terminology used herein is for the purpose of describing particularexample embodiments only and is not intended to be limiting. As used herein,the singular forms "a," "an," and "the" may be intended to include the pluralforms as well, unless the context clearly indicates otherwise. The term "and / or"includes any and all combinations of one or more of the associated listed items.The terms "comprises," "comprising," "including," and "having," are inclusive andtherefore specify the presence of stated features, integers, steps, operations,elements, and / or components, but do not preclude the presence or addition ofone or more other features, integers, steps, operations, elements, components,and / or groups thereof. The method steps, processes, and operations describedherein are not to be construed as necessarily requiring their performance in theparticular order discussed or illustrated, unless specifically identified as an orderof performance. It is also to be understood that additional or alternative stepsmay be employed.

[0043] Although the terms first, second, third, etc. may be used herein todescribe various elements, components, regions, layers and / or sections, theseelements, components, regions, layers and / or sections should not be limited bythese terms. These terms may be only used to distinguish one element,component, region, layer or section from another region, layer or section. Termssuch as "first," "second," and other numerical terms when used herein do notimply a sequence or order unless clearly indicated by the context. Thus, a firstelement, component, region, layer or section discussed below could be termed asecond element, component, region, layer or section without departing from theteachings of the example embodiments.

[0044] The techniques described herein may be implemented by one or morecomputer programs executed by one or more processors. The computerprograms include processor-executable instructions that are stored on a nontransitorytangible computer readable medium. The computer programs mayalso include stored data. Non-limiting examples of the non-transitory tangiblecomputer readable medium are nonvolatile memory, magnetic storage, andoptical storage.

[0045] Some portions of the above description present the techniquesdescribed herein in terms of algorithms and symbolic representations ofoperations on information. These algorithmic descriptions and representationsare the means used by those skilled in the data processing arts to mosteffectively convey the substance of their work to others skilled in the art. Theseoperations, while described functionally or logically, are understood to beimplemented by computer programs. Furthermore, it has also provenconvenient at times to refer to these arrangements of operations as modules orby functional names, without loss of generality.

[0046] Unless specifically stated otherwise as apparent from the abovediscussion, it is appreciated that throughout the description, discussions utilizingterms such as "processing" or "computing" or "calculating" or "determining" or"displaying" or the like, refer to the action and processes of a computer system,or similar electronic computing device, that manipulates and transforms datarepresented as physical (electronic) quantities within the computer systemmemories or registers or other such information storage, transmission or displaydevices.

[0047] Certain aspects of the described techniques include process steps andinstructions described herein in the form of an algorithm. It should be noted thatthe described process steps and instructions could be embodied in software,firmware or hardware, and when embodied in software, could be downloaded toreside on and be operated from different platforms used by real time networkoperating systems.

[0048] The present disclosure also relates to an apparatus for performing theoperations herein. This apparatus may be specially constructed for the requiredpurposes, or it may comprise a general-purpose computer selectively activatedor reconfigured by a computer program stored on a computer readable mediumthat can be accessed by the computer. Such a computer program may be storedin a tangible computer readable storage medium, such as, but is not limited to,any type of disk including floppy disks, optical disks, CD-ROMs, magnetic-opticaldisks, read-only memories (ROMs), random access memories (RAMs),EPROMs, EEPROMs, magnetic or optical cards, application specific integratedcircuits (ASICs), or any type of media suitable for storing electronic instructions,and each coupled to a computer system bus. Furthermore, the computersreferred to in the specification may include a single processor or may bearchitectures employing multiple processor designs for increased computingcapability.

[0049] The algorithms and operations presented herein are not inherentlyrelated to any particular computer or other apparatus. Various general-purposesystems may also be used with programs in accordance with the teachingsherein, or it may prove convenient to construct more specialized apparatuses toperform the required method steps. The required structure for a variety of thesesystems will be apparent to those of skill in the art, along with equivalentvariations. In addition, the present disclosure is not described with reference toany particular programming language. It is appreciated that a variety ofprogramming languages may be used to implement the teachings of the presentdisclosure as described herein, and any references to specific languages areprovided for disclosure of enablement and best mode of the present invention.

[0050] The present disclosure is well suited to a wide variety of computernetwork systems over numerous topologies. Within this field, the configurationand management of large networks comprise storage devices and computersthat are communicatively coupled to dissimilar computers and storage devicesover a network, such as the Internet.

[0051] The foregoing description of the embodiments has been provided forpurposes of illustration and description. It is not intended to be exhaustive or tolimit the disclosure. Individual elements or features of a particular embodimentare generally not limited to that particular embodiment, but, where applicable,are interchangeable and can be used in a selected embodiment, even if notspecifically shown or described. The same may also be varied in many ways.Such variations are not to be regarded as a departure from the disclosure, andall such modifications are intended to be included within the scope of thedisclosure.

Claims

1. A method, comprising: obtaining a physical commodity that is divided into one or more physical units; storing the physical commodity in a secure vault; utilizing a map that subdivides each of the one or more physical units into a plurality of segments, each of the plurality of segments being tangible portions of the physical unit that are distinct and identifiable, wherein subdividing each of the one or more physical units renders the physical units unaltered, and wherein the map is utilized to assign ownership of the plurality of segments to one or more owner users; receiving an instruction to transfer ownership of a particular segment of the plurality of segments from a particular owner user to a buying user; and assigning in the map ownership of the particular segment to the buying user.2 . The method of claim 1, wherein storing the physical commodity in the secure vault comprises transferring the physical commodity to a third party vault owner.3 . The method of claim 1, wherein obtaining the physical commodity comprises obtaining ownership of the physical commodity, the physical commodity being in physical custody of a third party.4 . The method of claim 1, further comprising: obtaining, at a computing device having one or more processors, an image of each of the physical units; and generating, at the computing device, a representation for each of the plurality of segments based on the obtained image of the physical units, each representation being: (i) associated with one of the plurality of segments, and (ii) representative of its associated segment.5 . The method of claim 4 , further comprising outputting, from the computing device, the three-dimensional image associated with the particular segment to at least one of the particular owner user and the buying user.6 . The method of claim 4 , wherein the image of each of the physical units is obtained from a three-dimensional scanning device.7 . The method of claim 4 , wherein the image of each of the physical units is obtained from another computing device.8 . The method of claim 4 , wherein the representation of each particular physical unit is generated based on unique characteristics of the physical unit, the unique characteristics including one or more of a physical refinery or mint stamp, a shape of the physical unit, a size of the physical unit, and a serial number associated with the physical unit.9 . The method of claim 1, wherein the physical commodity is a precious metal.

10. The method of claim 9 , wherein the physical units comprise at least one of bars, ingots, and coins.

11. The method of claim 1, wherein the map comprises information sufficient to define at least one of the plurality of segments, and information sufficient to identify ownership of at least one of the plurality of segments.

12. The method of claim 1, wherein obtaining the physical commodity comprises requesting a third party to obtain ownership of the physical commodity.

13. The method of claim 1, wherein utilizing the map comprises sending an instruction to one or more third party map operators that assign ownership of at least one of the plurality of segments in the map.

14. A computing device, comprising: one or more processors; and a non-transitory, computer readable medium storing instructions that, when executed by the one or more processors, cause the computing device to perform operations comprising: utilizing a map that subdivides each of one or more physical units of a physical commodity into a plurality of segments, each of the plurality of segments being tangible portions of the physical unit that are distinct and identifiable, wherein subdividing each of the one or more physical units renders the physical units unaltered, and wherein the map is utilized to assign ownership of the plurality of segments to one or more owner users, receiving an instruction to transfer ownership of a particular segment of the plurality of segments from a particular owner user to a buying user, and assigning in the map ownership of the particular segment to the buying user.

15. The computing device of claim 14, wherein the operations further comprise: obtaining an image of each of the physical units; and generating a representation for each of the plurality of segments based on the obtained image of the physical units, each three-dimensional image being: (i) associated with one of the plurality of segments, and (ii) representative of its associated segment.

16. The computing device of claim 15 , wherein the operations further comprise: outputting the representation associated with the particular segment to at least one of the particular owner user and the buying user.

17. The computing device of claim 15, wherein the image of each of the physical units is obtained from a three-dimensional scanning device.

18. The computing device of claim 15, wherein the image of each of the physical units is obtained from another computing device.

19. The computing device of claim 14, wherein the physical commodity is a precious metal.

20. The computing device of claim 19, wherein the physical units comprise at least one of bars, ingots, and coins.

21. The computing device of claim 14, wherein the map comprises information sufficient to define at least one of the plurality of segments, and information sufficient to identify ownership of at least one of the plurality of segments.

22. The computing device of claim 14, wherein utilizing the map comprises sending an instruction to one or more third party map operators that assign ownership of at least one of the plurality of segments in the map.