As one of the biggest online silver and gold bullion markets, BullionVault has serviced investors in over 175 countries through their website which is accessible to customers in 10 different languages.
Founded in 2005, BullionVault has their corporate headquarters in London, England. They are essentially a peer-to-peer precious metals company which allows its investors to buy gold or silver bullion and have it stored inside a vault avoiding delivery.
BullionVault has been compared to a stock brokerage, since it helps investors with trading and monitoring of their precious metal investments. Since October 2013, there have been over 50,000 individual investors who have gone through BullionVault to buy and sell as well as trade precious metals. It has been estimated that these individual investors have an estimated $1.4 billion of gold bullion combined. That amount is greater than the total of precious metals that the majority of central banks have stored throughout the world. Additionally, there is also $305 million of silver bullion held.
One interesting fact of BullionVault is that one of the investors of their company is the World Gold Council (WGC). Due to their large network of investors and all of their assets, BullionVault is allowed to offer their customers with some very competitive rates.
Why BullionVault Was Created
BullionVault felt that there was two major problems when it comes to investing in gold or silver. Their company’s mission is to solve these two problems.
Inaccessible Professional Bullion Market
Top prices for gold and silver are on the Professional Bullion Market. This is the place that the governmental agencies, banks, dealers and refiners trade. This professional market only trades gold at a price of $500,000.00 per gold delivery bar while also trading silver bars that weigh 1,000 ounces.
With these prices and weights of precious metals, the private investor is unable to invest.
Inaccessible Professional Vaults
With bars stored in accredited vaults in the Professional Market, the monthly charges was extremely high. An investor would actually need about 15 400 ounce gold bars, at a value of $7,000,000 to have any real profit in your private account. This extremely high beginning balance made the system economically inaccessible to private investors.
BullionVault Exchange Facility
Investors’ purchases of metals are held in private vaults that are managed under a bailment contract through a contracted company. Bullion is stored in allocated storage which is located in Zurich, Singapore, Toronto and New York. There are two companies that are managing the storage which are Brinks or Via Mat International.
On BullionVault’s website there is a market order board for customers to view the current ask and bid prices for gold and silver.
New investors are required to provide proof of their identity, verify their address and provide a verified bank account in order to fund their account.
Transfers of precious metals between customer account is not allowed, in opposition to digital gold currency (DGC). But what is allowed is for investors to buy and sell precious metals to each other on the trading platform provided. There is a daily audit performed which provides investors with the most current account information to include bar lists. This reassured all investors that their precious metals are safely held in vaults.
Reserved and Registered Bars
Typically purchased gold or silver bars are not tied to a specific bar through BullionVault since the majority of the bars are purchased by various investors. When an investor has the equivalent of one bar through their purchase they can choose to have a bar or bars registered in their name. When registration is complete, the purchased bar or bars are then “reserved bars” and the investor has complete ownership.
Since March 2013, BullionVault permits is investors to buy and sell their vaulted precious metals at a price that is determined by the London gold/silver fix which is calculated daily. Investors can find this option on their website. There is also a “Regular Gold Investment” plan, which permits customers to automatically buy gold held in Zurich at the currently daily price. With the Regular Gold Investment Plan, investors are able to fund their accounts automatically each month for a specified amount and buy precious metals according to their standing order.
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