Bullion Vault Review

Bullion Vault (BV) is an industry leading precious metals marketplace. You can buy, sell, store and trade gold and silver on BullionVault.com

See also the SWOT analysis for Gold and Silver

SWOT Analysis

Strengths

  • Historically gold has been a good store of value.
  • Gold held in BullionVault is segregated and allocated. The Gold and Silver you own in Bullionvault is your property.
  • The type of gold stored is Good Delivery bars, which are readily tradable on the market.
  • No Sales Tax or Value Added Tax (VAT) apply when you buy precious metals on BV.
  • Insurance is included in the storage price.
  • Dealing spread is typically 0.4%
  • 60,000 users. citizens of over 175 countries and worth more than $2 billion.
  • Client money is held in a segregated and pooled trust account at Lloyds TSB bank.
  • Gold is a good hedge against inflation and hyperinflation.

Opportunities

  • The order board is a system where you can trade directly with other users rather than buy from or sell to BullionVault. When buying and selling on the order board, you pay a commission whose maximum rate is 0.5%.
  • An audit of all the gold and their anonymised owners is available and can be reconciled with an official bar list.
  • Security is organised by VIA MAT International, LOOMIS and Brinks, all companies with a good reputation in the security business.
  • You can profit from being a market maker on Bullion vault, because you can use the spread to your advantage. The spread is the difference between the selling price and the purchase price.
  • You can set up a Regular Gold Investment Plan, this automates your gold purchasing. You can set it to buy a specific amount of Gold or Silver every month. You only need to make sure that your account is funded.
  • BV gives you a good opportunity to spread your wealth geographically, London, Zurich and New York. Switzerland historically has been a safe place to store wealth because of its neutral status.

Weaknesses

  • Gold and Silver have no yield.
  • Gold is also a form of FIAT currency if people loose trust in it, they will sell and it will loose value.
  • Minimum amount you can buy is 0.32 OZ or 0.010 KG
  • You cannot buy silver with gold or vice-versa, you need to sell one metal and then buy the other.
  • You cannot switch vaults directly you need to sell your metal from one vault and then buy it in another.
  • Trading currencies available are: EUR, GBP, USD
  • Trading is available only in these metals: Gold and Silver but not in these: Platinum and Palladium
  • For a fee, your precious metals can be withdrawn from BullionVault
  • 0.3% currency-switching fee if the order is placed in British Pounds, Euros or Japanese Yen.


BV charges you to store your gold, custody charges:

Dollar value
of your gold
Annual gold
custody charge
Effective annual
gold % rate
Dollar value
of your silver
Annual silver
custody charge
Effective annual
silver % rate
$5,000 $48 0.96% $5,000 $96 1.92%
$10,000 $48 0.48% $10,000 $96 0.96%
$20,000 $48 0.24% $20,000 $96 0.48%
$30,000 $48 0.16% $30,000 $144 0.48%
$40,000 $48 0.12% $40,000 $192 0.48%
$50,000 $60 0.12% $50,000 $240 0.48%
$75,000 $90 0.12% $75,000 $360 0.48%
$100,000 $120 0.12% $100,000 $480 0.48%
$250,000 $300 0.12% $250,000 $1,200 0.48%
$500,000 $600 0.12% $500,000 $2,400 0.48%
$1,000,000 $1,200 0.12% $1,000,000 $4,800 0.48%

Withdrawal fees

Gold:

  • 400 troy oz not more than 2.5% of value
  • less than 400 troy gold oz  not more than 7.5% of value

Silver:

  • Only possible in silver bars (1,000 troy oz)
  • Fees are less than 10% of value

Threats

  • Your gold and silver stored in Bullion Vault is not accessible quickly. It will take days to redeem your gold, which is not ideal in case of a personal crisis.
  • Gold has been confiscated by governments before. Vaults with such heavy concentrations of gold could be put under “Government protection”, this is most likely to happen if a particular government desperately needs to control the price of gold or needs gold itself to maintain itself or the people. As low a risk this is, it can happen.
  • It has been said that if the gold price increases a lot, a special profit tax could be applied.

Visit BullionVault.com today, this platform is very easy to use and user-friendly.