BullionVault is a company registered in the United Kingdom, which specialises in buying physical gold, silver, and other metals ONLINE.
The idea behind the company was that physical gold had traditionally been the preserve of the wealthy, due to the storage and insurance costs. Physical gold traditionally also had the negative of lack of liquidity – meaning it is difficult to find a buyer quickly.
By having an online system where costs are shared, and a large pool of investors, BullionVault decreased the costs associated with holding physical gold, and made finding a buyer and seller seamless.
Starting in 2003 with around $500,000 in seed funding, the company has grown to profitability and has become one of the largest firms of its kind in the world, with 100,000 clients spread over 170 countries.
BullionVault started by allowing people to trade gold. It has now expanded to include silver, platinum and palladium.
What are the costs?
There are three to four costs associated with BullionVault:
- Dealing commissions when you buy and sell. Starting at 0.50% for smaller amounts, it falls to as low as 0.05 for larger amounts.
- Storage fees. This is 0.12% a year.
- Burglar alarm. This charge isn’t compulsory, but the service alerts you to account withdrawals and changes to cell phone numbers and other sensitive information held on the online account. The cost is only $0.20 per text.
- Fund remittance charges. Most UK withdrawals are free, but charges are up to £20 by Chaps and $30 via SWIFT.
Most investors can expect to pay at least 0.50%-0.62% per year.
Where is the gold stored?
The gold is currently stored in either Zurich, London, New York, Toronto or Singapore. The customer makes the choice about where to store the gold, silver, platinum or palladium.
What are the different currency options available?
You can be charged in the following currencies: Dollars, Euros, Pounds or Japanese Yen
What are the positives associated with Bullionvault?
- It is a safe way to trade gold, silver and some other metals. The parent company is strong, and they have a good model for people looking to buy physical metals.
- It is almost as liquid as ETFs, at least de-facto. The only way you won’t find a buyer is if nobody is looking to buy on the system, which is unlikely.
- They have added numerous currency options to the mix.
- It is possible to become a client from most countries in the world.
- The security of the physical gold is good, as the costs pay for insurance and other safeguards.
Conclusion
BullionVault is a good, safe and transparent system if you want to buy physical gold, silver and other metals. We suggest checking out their site for more details.