In the following article I'm going to review BullionVault service. If you don't know it yet, BullionVault offers the option to purchase physical gold, silver, and platinum under a deposit agreement.
BullionVault manages $3.8 billion of bullion and assets, including some $2.4 billion worth of gold - more than the gold reserves of most countries.
The physical assets are stored in five vaults located in multiple locations: Zurich, London, New York, Toronto, and Singapore.
Except for UK customers who deposit pounds sterling, a bank transfer is the only means of transaction for everyone else, thereby incurring unnecessary costs. Investors looking for a pure execution alternative to buying precious metals stored in a secure vault could benefit from BullionVault; however, the rest will find the services quite below average.
BullionVault, founded by Galmarley Limited in 2003 and partially owned by the World Gold Council (11.4%) and Augmentum Capital (11.4%), is the largest online precious metals investment service globally.
It is home to over 85,000 clients from over 175 countries, with total holdings of over $2 billion in stored bullion across five vaults. BullionVault was twice awarded the Queen’s Award for Enterprise honors; it is a full member of the London Bullion Market Association and the London Platinum and Palladium Market.
Regulation and safety
Galmarley Limited is a company registered in England and Wales. BullionVault LTD, its wholly-owned subsidiary and operator of the website, is separately registered in the same jurisdictions. Every day, an audit of all assets across vaults is published along with customers ' nicknames, which allows owners to confirm their holdings.
Three independent professional gold market vault operators and LBMA security transport companies manage the five vaults where the precious metals are stored. Extensive physical security measures and an external insurance policy ensure the safety of physical assets. Should BullionVault or one of the operators declare bankruptcy, a liquidator will return the assets to the owners, since the property will always remain with the customers.
BullionVault provides highly secure trading and storage services for gold, silver, and platinum.
BullionVault derives its fees from spreads, commissions, custody fees, and interest income. The premium on gold and silver is generally higher than that of most other brokers, although platinum has a competitive price. Commissions start at 0.50% but can be as low as 0.05% depending on the volume. An annual storage and insurance fee of 0.12% for gold and gold, respectively.
As of August 2020, there is a $30 bank transfer fee and a 0.75% monthly holding fee for euros. Additional fees, such as a $20 phone-assisted password change and a $50 fee to change bank account information, seem unnecessary. Additional penalties, including repeated small deposits of less than $ 100 (or currency equivalent) or unauthorized use of a credit /debit card, will be deducted from the balance.
BullionVault is completely transparent about all involved costs.
Spreads are generally higher as compared to many other brokers.
What Can I Trade
BullionVault offers traders the opportunity to buy physical gold, silver, and platinum bars. All bars are continuously held in professional bullion storage facilities, maintaining the chain of integrity, and the full history of each bar is available. Bar sizes for gold can be 400 troy ounces, 100 troy ounces, or one kilogram (32.1507 troy ounces). Silver bars are 1000 troy ounces and platinum bars range between one and six kilograms. Buyers may purchase assets in US Dollars, British Pounds, Euro, or Japanese Yen.
Gold, silver, and platinum are the three precious metals available at BullionVault.