I first opened an account early in 2009, so this Bullionvault review is the result of personal experience. Uncertainty in financial markets makes investors very nervous. Theoretically, risk can be modeled accurately. Uncertainty is non-mathematical and cannot be compensated for using traditional valuation metrics.
Uncertainty has increased in the global financial system since the economic crash of 2008, fueling increasing investor interest in precious metals. Gold in particular has experienced a 10-year meteoric bull market, hitting new nominal highs and coming precariously close to the key psychological barrier of $2,000 per troy ounce.
Like James Turk’s Goldmoney, Bullionvault allows investors the world over to purchase professional market gold. The gold is held in secured vaults located in New York, London and Zurich. Visit this Goldmoney vs Bullionvault page to read a comparison of these two services.
Investors wishing to buy gold in coin or bar form have a dilemma on their hands. It could sometimes take weeks for private investors to get their hands on some physical bullion back in 2002, when the bull market began. Recognition of this difficulty inspired the idea behind a company called Bullion Vault, which opened to the public in 2005. BullionVault is built around the notion of granting private investors access to the professional gold market. This market, which is worldwide, trades in London Good Delivery bars. Good Delivery bullion bars are the international standard for industrial and commercial uses of gold.
A London Good Delivery bar weighs approximately 400 troy ounces, is 11 inches long and is 99.5 percent pure. These specifications present obvious difficulties for private investors seeking to own physical gold bullion. The size, weight and price automatically prevent anyone who is not a dealer or major customer from purchasing Good Delivery bars. BullionVault was formed to bridge the gap between the professional Good Delivery bar market and the average private investor seeking to buy gold bullion.
BullionVault.com has proven so successful that it was awarded the coveted Queen’s Award for Enterprise: Innovation in 2009. The Queen’s Awards are the most prestigious awards for business success in the United Kingdom and previous winners include the BBC. The citation references bullionvault’s development of automated Internet dealers and the reduced costs available to customers. It also highlights the fact that the customer’s gold ownership is certified by a Daily Audit of all property. These Daily Audits are freely available on the Internet to investors providing complete transparency.
The prestige of BullionVault is reflected in the World Gold Council’s endorsement of this company. The Council, in partnership with a capital fund backed by RIT Capital Partners Plc, has also invested in BullionVault to the tune of 11 percent of the company in June 2010. The World Gold Council is the market development organization for the global gold industry. The Council aims to provide leadership in the industry while creating sustainable, increasing demand for gold. The World Gold Council is one of the most recognized bodies in the world and a renowned authority on the subject of gold.
Private investors can take advantage of BullionVault to buy allocated gold. They have access to competitive market prices, secured storage facilities and the ability to move funds easily. Opening an account usually takes less than a minute, after which the investor can access live market prices. The competition between buyers and sellers reduces the dealer spread to an average of 0.4 percent, a fraction of the percentage charged by other companies. Judging by the table above buy and sell rates are very low.
Bullion Vault in our opinion is a solid solution for private or retail investors looking to own the highest-quality gold bullion, but some recommend not having all your golden eggs in one basket and diversify with owning some coins and/or bars as well. Ultimately the responsibility lies with you.
Listed here is a review of Bullionvault’s strengths:
1. Allocated gold
2. Multi-currency trading.
3. Low dealing fees.
4. Offshore storage in Switzerland and the USA.
5. Ability to switch storage jurisdiction rapidly.
6. 24 hours a day seven days a week interactive web dealing.
7. Daily Audit for peace of mind. Check proof of client holdings vs bar lists.
8. Security – the Burglar Alarm and the single exit route for your money back to the account you funded with.