Is the Depository & Trading Platform of BullionVault Safe? | Storage & Withdrawal Fees 2022

13 min read

Gold, silver, and platinum can be purchased and sold on BullionVault, a leading platform for the trading of precious metals. Gold, silver, and platinum bullion can be traded to private investors through BullionVault, a vault provider who stores their bullion on their behalf. Investors own their precious metal holdings and have the option to seize them. Reports on the gold, silver and platinum holdings are published regularly, and these are checked and audited.

History of BullionVault:

Founded in 2003, BullionVault deals with gold, silver, and platinum. A year ago. Private investors can purchase vaulted gold from BullionVault online since 2005. A vaulted gold investment is physical gold that an investor owns and has kept in a professional vault for security reasons. BullionVault offers an Internet platform for purchasing and selling gold.

Customers can also contact BullionVault by phone. As of March 2017, BullionVault also offers vaulted platinum as well as sawdust. Investors can choose from five different gold vaults in Zurich, Switzerland, London, New York, Singapore and Toronto (Canada) to acquire their gold as their direct owners. Gold valves are also available in several jurisdictions, so clients can diversify their holdings of gold.. Investing in BullionVault is similar to trading gold on a gold exchange: clients can buy and sell gold to other investors. Moreover, BullionVault serves as a market maker, i.e. it brings gold to its customers and sells it to them.

The Automatic Gold Investment Plan was introduced by BullionVault in March 2013 and offers investors regular gold purchases per day at the London price. Upon setting up the investment, the investor can simply deposit money into his BullionVault account, and the money is automatically used to purchase gold.

BullionVault does not require investors to place orders or trade directly on the platform. BullionVault Gold Purchases account holders may make regular deposits (e.g. every month) from their bank account by setting up an automatic monthly withdrawal. Investors can decide when and to what extent to make deposits into their accounts under the Automatic Golden Investment Plan. Payments can be adjusted at any time within certain limits and the deposit can be ceased at any time without affecting their credit rating. BullionVault’s website offers more information about its Automatic Gold Investment Plan.

How easy is it to use BullionVault?

Using the website is easy and clear. The website has a wealth of information, including a handy investment guide, precious metals price charts, news, buying information, and reviews. Even though the site contains some information, it is extremely easy to navigate and is extremely user-friendly. Opening an account with BullionVault usually takes just a few minutes.

It is necessary to provide the user name, email address, user name, and password. Verifying your account requires a copy of your ID and a copy of your bank statement. It is mandatory. After your usual personal information has been added and your account has been verified, you will be able to fund your account through a bank transfer or credit card payment. Typically, online trading is the primary method for purchasing and selling gold and silver vaults. Buying sawdust gold and silver is easy and convenient for the customer. In theory, you could have any amount of physical bullion in about two hours after registering and verifying your account. BullionVault is used in what way?

BullionVault offers very reasonable storage prices of gold, silver, or platinum at high-tier vaults that are safe and secure. For example, storing precious metals at home could be risky, and it isn’t as simple as you think. The best method for storing gold bullion at home is to be creative, and the safest method is to keep it out of harm’s way.

If your gold is stolen, you might still lose it all. A security deposit box may also be an option. The safe deposit box makes it somewhat secure. Technically speaking, however, it may be possible to seize a security deposit box or amend the law by refusing your access. BullionVault makes gold storage risk-free by taking care of the shipping and other costs for you. It is 100 percent allocated to gold. In other words, let’s say you buy gold and that the gold is your legal property on your behalf. Neither it nor any other entity can be claimed by BullionVault.

gold bars

Investing in Gold through BullionVault:

BullionVault’s gold investment solution is a physical gold purchase, deposited in an assigned account, but held in a safe place. This method has the advantage of not having to pay the costs of receiving gold, as well as not having to pay the most expensive wholesale rate, instead of the retail rate. Certified investment grade gold is held in a named and numbered account for the benefit of the client.

Sizes of Bars:

Gold bars come in many different shapes and sizes, and buying in bulk saves you money.

You can now invest any amount in gold, from 1 gram to 10 large gold bars, at professional bullion market prices. Click here for a detailed explanation of the cheapest, safest, and easiest way to buy gold.

At the most expensive end of the gold bar price scale, one-gram “novelty” gold bars are minted for the gift market. Often coated in plastic, these tiny gold bars cost at least twice the value of their gold bullion content.

Cheapest of all, in contrast, are the 400-ounce (12.4kg) “Good Delivery” gold bars held by central banks, and traded by professional bullion dealers in London, center of the world’s 24-hour gold market.

It’s the live dealing in these 400-oz gold bars, along with the trade in Comex gold market-approved bars in New York (100 oz), that creates the spot gold price you see quoted on the internet and in your newspaper.

Types of gold bar

There are more than 30 types of gold bar circulating in the world’s regional gold markets today. In value terms, the most heavily traded gold bars – with the largest ready market, open 24 hours a day, five days a week – are the Good Delivery gold bars bought and sold through dealers working in London.

Sixty-three active gold refineries, all closely monitored and approved by the London Bullion Market Association, make around 150,000 of these 400-ounce gold bars each year. That’s worth some $102 billion at current prices (Jan. ’13).

In the smaller, local gold markets of India, Singapore and the Middle East, the most widely traded gold bar is the “ten tola” bar. Rarely stamped with a serial number and weighing 3.75 oz (117g) each, two million of these “TT” gold bars are cast or minted each year.

The most popular gold bar in China is the “five tael biscuit” bar (6 oz; 187g). Manufactured in Hong Kong, five-tael gold bars are approved and recognized by the Chinese Gold & Silver Exchange, now in operation for almost a century.

Outside Asia, the most popular gold bar sold to private investors for personal storage is the kilobar (1000g; 32.15 ounces). More than a million of these gold bars are manufactured each year, most often in Switzerland.

The leading gold-bar refineries also make vast quantities of one-ounce gold bars every year – and just like the kilobar, these gold bars are widely promoted as a cost-effective route to gold investment.

But these smaller gold bars, although they’re cheaper than gold coins, don’t come without significant drawbacks

.

gold bullion

Why buy gold bars?

Buying gold bars is almost always cheaper than buying the same weight in gold coins – and the bigger each bar, the lower the cost by weight.

Depending on your local tax regime, you can reduce or completely avoid paying sales tax (VAT) by buying gold bars instead of coins, too. Your savings will also depend on the quality (or “fineness”) of the gold bars you buy.

Trading Good Delivery gold bars – guaranteed to be of 99.5% fine or above – can then cut your tax bill again in many countries, because these 100- and 400-ounce gold bars are defined as investment gold and eligible for personal retirement plans. Good Delivery gold bars reduce your costs further still by retaining main market deliverable status. Depending on your point of view the elimination of private possession and insurance arrangements is also a plus.

Smaller gold bars such as 100g gold bars bought and stored at home, on the other hand – or even kept in a bank safety deposit box – present three big drawbacks.

  • Price: If you’re buying small gold bars, your purchase price will be 2% or even 4% above the value of the gold content you get. Expect to lose nearly as much again when you sell small gold bars back to your dealer, too.
  • Delivery: Most gold bar retailers will cover the cost of insurance when sending gold out to new buyers, but they’ll expect you to cover this cost when you send back your gold bars to sell them.
  • Security: Insuring gold bars kept at your home will push your premiums sharply higher, even if you invest in a good safe. Using your bank’s vault won’t be cheap, either – and keeping gold in your possession without insurance is not a serious option.

Specialist gold-bar storage programs – such as gold pool accounts and certificate schemes – offer to help cut out the hassle of taking physical possession. This can certainly help reduce the premiums you pay to buy gold and sell. But their storage fees still run up to 1.5% per year.

That’s a significant charge for owning gold bars – a passive investment that pays you no interest. There is a much cheaper route, however, into buying gold and owning it outright.

Direct Access to the Biggest Gold Bars

To retain Good Delivery status, the big 400-ounce bars of gold traded by refineries, central banks, wholesalers, bullion banks and professional dealers must remain inside secure, recognized gold bullion vaults.

Take these gold bars out of market-approved storage – even to store at your bank – and they break the chain of integrity that guarantees each bar’s gold to the next buyer.

It’s the integrity of Good Delivery gold bars that ensures maximum resale when you come to sell. But until recently, private investors couldn’t easily access this market unless they were able to buy a whole 400-oz bar. Nor could they arrange market-approved storage unless they owned five big bars or more.

At BullionVault, however, you can now buy gold in amounts as little as one gram at a time. Stored in market-approved gold bar facilities, your gold will retain its maximum resale value. Storage fees for owning a portion of these big gold bars run as low as 0.12% per year, with insurance included. Estimate your commission and storage fees using their cost calculator.

Ease of Use:

To open an account at BullionVault, all you have to do is go online. It takes about five minutes. The registration process requires details to be provided, followed by the account being funded (either by bank transfer or credit card). An investor may have to provide additional documents or details for money laundering purposes. The investor’s online trading screen can be used to buy and sell gold after the funds have been moved to BullionVault.

All accounts must be validated within two weeks of registration. It’s a legal requirement, but it’s easy to complete online and it takes just a few minutes. Buying and selling gold can be done with just a click of the mouse on the trade systems, as well. Customers can post offers and offers to make the market almost exclusive.

What Coins Does BullionVault Offer?

On the website of BullionVault, a variety of coins are available.

BullionVault offers gold Sovereigns and various 1oz gold coins: Britannia, Krugerrand, Buffalo, Eagle, Philharmonic, Kangaroo and Maple.

They do not offer silver or platinum coins, or other denominations of gold coin.

A currency’s value is determined by its measurement by buyers and sellers.

gold coins

Is BullionVault a scam?

There is no evidence of this. Its registered office address in the United Kingdom belongs to the company Gal Marley Ltd T/A BullionVault. BullionVault’s headquarters are located at 3 Shorthand’s, London, England, and W6. However, the vaults are located in London (UK), Zurich (Switzerland), New York (USA), Toronto (Canada) and Singapore. Trust is essential when dealing with BullionVault. The company belongs to a distinguished group of eminent bullion dealers.  

What is the BullionVault trading platform like?

Gold, silver, and platinum bars can be purchased and traded at BullionVault using a trade platform. In addition to bullion bars, the vaults also house professional vaults. A drop-down menu is available on your account for placing buy and sells orders. As a trader, you have the option of buying precious metals from various markets. The Live Order Board displays the current tender price. BullionVault is an online precious metal trading platform where you can directly deal with other members. Buying and selling directly keeps brokerage fees low, since you deal with other buyers and sellers directly.

The BullionVault app:

Download the BullionVault app to either your iOS or Android device to start buying and selling bullion on the move. Over $278 million (£206 million) worth of gold, silver, platinum and palladium have been traded via orders placed through the apps on smartphones and tablets in the last 12 months.

You can access it through your smartphone or tablet 24 hours a day, which is a great feature. It is possible to check balances and orders as well as markets, prices and purchases on the go. It is also possible to set price alerts to receive notifications when prices change.

This is an excellent feature for regular traders. It allows you to access your account around the clock with your phone or tablet. Your balance and orders can be managed on the go, as well as checking the markets and price chart. A price alert lets you know when prices fluctuate. It is an excellent feature if you are a regular trader.

Why is the gold stored in secure vaults?

Allocated vaulted storage is arguably the most secure way of storing gold bars and coins.

With BullionVault, you can store your precious metals in a private, secure vault with the help of a trusted provider. A 24 hour online account allows you to access your gold anytime you want. As long as you know about gold, you can buy more silver or sell your gold bullion whenever you like. With physical metal lying around the house, it’s harder to do. Gold can be purchased, sold, and stored at the same time.

silver bullion

Remember storage costs.

Standard Charges

Per BullionVault’s help pages, you pay three (occasionally four) charges in the normal course of using BullionVault.

BullionVault uses US Dollars to illustrate many of their charges. You may be charged in US Dollars, Euros, British Pounds or Japanese Yen, depending on the currencies in your account. (They will often use your smallest currency holding preferentially.) When BullionVault settles a fee cross-currency, no commission is charged and they will use the mid-point spot price with no buy-sell spread.

  1. Dealing commission each time you buy or sell through the order board.0.5% maximum falling to a minimum of 0.05% depending on the amount of gold, silver, platinum or palladium bought or sold in the year. Discounts start at $75,000. Please note: on silver, platinum and palladium purchases and sales this charge is not commission, but is contracted as a ‘mark-up’ or a ‘mark-down’ as appropriate.
  2. Storage & insurance for as long as you hold.0.12% per year on gold, billed monthly and subject to monthly minimum of $4. 0.48% per year on silver, billed monthly and subject to monthly minimum of $8. 0.48% per year on platinum, billed monthly and subject to monthly minimum of $8. 0.48% per year on palladium, billed monthly and subject to monthly minimum of $8. Please note: you can use the cost calculator to estimate your commission and storage fees.
  3. Burglar Alarm. Although it is not mandatory BullionVault strongly recommends you use the Burglar Alarm which alerts you via SMS to account withdrawals or changes to your registered mobile/cell phone number. It is enabled automatically when you first enter your mobile/cell phone number in your Account Settings. Within your Account Settings you have control regarding whether or not you will receive additional SMS messages for logging in, or placing orders. There is a nominal charge of $0.20 for the additional SMS messages.
  4. Funds remittance fee. Most UK withdrawals are free. When they pay their bank to remit funds to you (e.g. US and international transfers) there is a fee. Common withdrawal fees are:
    • CHAPS: £20
    • SEPA: €10
    • US-domestic ACH: $10
    • International SWIFT: typically not more than $30For SWIFT payments, intermediary/correspondent banks may apply an additional fee which is not within BullionVault’s control.

A small currency holding fee may also apply where their bank charges negative interest rates. Currently this applies to Euro balances only.

What is the customer support like?

The service provided by BullionVault is excellent. Customer service quality and ease of use have been emphasized in several positive online reviews. (During business hours) It’s good to know you can call and speak to someone. Another great feature is that Live Support, which is available 24/7, allowing customers to ask questions easily and quickly when needed (again, during regular business hours). There is a very thorough section on BullionVault’s website for frequently asked questions. Most customers have their questions answered by this. The standard e-mail address, the complaints procedure, and the standard mailing address are also available.

How Do Cash Withdrawals Work?

Per BullionVault’s FAQ, you can withdraw your cash at any time, provided your account is validated and the funds have fully cleared.

Note: You are able to hold multiple currencies on account with BullionVault – the only restriction is that when you withdraw, you must be sure your bank will accept the currency you ask BullionVault to send. Most banks will automatically convert the funds into your home currency, usually at an expensive rate. Some banks will just reject the transfer and return the funds to BullionVault. Please check with your bank before withdrawing a foreign currency.

The procedure

Step 1.Log in and select the ACCOUNT button followed by the WITHDRAW FUNDS sub-menu option. Withdrawal requests must be more than $100 or other-currency equivalent.
Step 2.Type in the amount you wish to withdraw. Press the SUBMIT button, and on the subsequent page double-check all the details before pressing CONFIRM

When will you receive your money?

Withdrawal requests received before midnight GMT will be placed in a batch to be processed on the next working day. The time it takes for your funds to reach your bank account will vary according to the following:

For transfers to US banks:

BullionVault will typically pay you using ACH. They will deduct $10 for this service.

Where an ACH is not possible BullionVault will pay you using SWIFT. They will deduct $30 for this service.

Note: Exact transfer times may vary depending on your bank’s time zone & service levels. Your withdrawal may show as ‘unprocessed‘ until around 5pm UK time.

For transfers to UK banks:

  • Withdrawals of £20,000 and above, or at your request, will be processed by CHAPS. Ordinarily a CHAPS payment will reach you on the first working day after you enter your withdrawal request. The bank will deduct £20 for this service.
  • Withdrawals below £20,000 will be processed by BACS. Ordinarily a BACS payment will reach you on the third working day after you enter your withdrawal request. This transfer is free of charge.

Note: Exact transfer times may vary depending on your bank’s service levels. Your withdrawal will show as ‘unprocessed‘ until around 3pm UK time for CHAPS transfers, and around 5pm UK time for BACS transfers.

For transfers to EU, European Economic Area and Swiss banks:

BullionVault will pay you using SEPA. Ordinarily a SEPA payment will reach you within a few working days of entering your withdrawal request. BullionVault will deduct €10 for this service. Your bank may deduct additional charges (typically around €20).

Note: Exact transfer times may vary depending on your bank’s time zone & service levels. Your withdrawal will show as ‘unprocessed‘ until around 3pm UK time.

For transfers to all other banks:

BullionVault will pay you using SWIFT. The fee will depend on the currency of the transfer, but will not usually exceed $30.

Note: Exact transfer times may vary depending on your bank’s time zone & service levels. Your withdrawal will show as ‘unprocessed‘ until around 3pm UK time.

Any transfer costs will be taken out of the withdrawn amount – you do not need to allow for charges.

How to Verify Your Account:

Provide the following documents, which are necessary: Identification documents, such as a passport, national identification card, driver’s license, or any other government-issued document that features your photo, your date of birth, and your signature. The bank statement of the account that was used to fund your BullionVault account is proof of your bank account. A utility bill may suffice in place of a bank statement if no address is shown on it. The proof of legal entity is also required for businesses and trusts. A confirmation e-mail will be sent to you once your account has been validated. You can check your account status under Account > Validation.

physical gold

Final Thoughts:

Gold bullion distributor BullionVault is among the world’s largest. More than 40,000 customers use the company and 30 tones are held. Due to its low cost structure and flexibility, it is the ideal solution for retail investors who want to buy gold easily. In the past, an investor could physically withdraw gold from their assigned account, but this approach has become less expensive.

The withdrawal of physical gold costs 2.5% of its value, plus 5% if the weight of the gold is less than 400 ounces (equivalent to the weight of a standard London Good Delivery Bar). Investors are further protected by the daily independent audit. Funds from the sale of products or services shall be deposited within 24 hours and withdrawn within 48 hours. When it comes to gold investors, BullionVault is difficult to beat with its easy-to-use system, small retailing and storage costs, and 24 hour access with the highest level of customer security.

Disclaimer: Although the material contained in this website was prepared based on information from public and private sources that TELcrush.com believes to be reliable, no representation, warranty or undertaking, stated or implied, is given as to the accuracy of the information contained herein, and TELcrush.com expressly disclaims any liability for the accuracy and completeness of the information contained in this website. 

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