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Silver at Spot Price: BullionVault Review

With BullionVault, you have the right exposure to professional market prices for investment grade silver. How much silver you want to buy or sell is entirely all up to you, you can start from as little as a gram.

It couldn’t be simpler or faster buying physical silver on BullionVault. This silver bullion when compared to buying small bars or silver coins is significantly cheaper too, you save up to 30 % by getting to avoid high mark-ups and additional costs like Value Added Tax (VAT).

Any silver bought by individuals through BullionVault is securely stored for them in market-approved vaults at very low cost. You get to own your silver absolutely unlike traders in Exchange traded funds (ETFs). The silver is fully allocated, and customers of BullionVault are not exposed to its balance sheet or creditors in any way.

Why you should opt for large-bar silver?

You are able to buy silver bullion with the same quality as the one traded in professional markets at BullionVault. These consist of bars meeting the LBMA (London Bullion Market Association) Good Delivery specifications.

Good delivery bars typically weigh around 1,000 troy ounces and are assayed as 99.9% pure silver or even better. This is how trading of physical silver happens in the wholesale market, but the standard amount for dealing is one tonne. So a majority of private individuals resort to small bars or silver coins. These units that are smaller get sold at significant mark-up when contrasted to large bar silver.

BullionVault holds all silver bought through it in Good Delivery bars securely stored in professional vaults approved for the market. A person can choose to buy silver bullion in Zurich (Switzerland), London (UK), Toronto (Canada) or Singapore. In any location no sales tax or VAT has to be paid which saves you money again when contrasted to small bars or coins.

Please note that in a UK SIPP (self-invested person pension), silver is not permitted.

Buying silver on BullionVault’s market

The market order board for BullionVault is open 24/7 which is more than the market for professional bullion. Customers are able to buy and sell silver in their currency of choice- Euros, British Pounds or US Dollars. The settlement is instant and there is no leverage or credit.

In just a few seconds a person can set up an order to buy silver and if a matching order is available in the live markets, then the silver immediately becomes yours. You can also put the order to buy at low price if you think the silver price is going to drop. It remains open in the market online until you decide to cancel it or it gets matched. This is a flexible way of buying silver bullion.

You first of all need to open an account so as to buy silver with BullionVault- It’s free and only takes minutes off your time. After opening the account you will have free currency and free silver for you to try to buy and sell.

BullionVault vs. silver coins

Since private investors can’t normally buy silver via the wholesale spot market, they tend to invest through derivatives such as ETFs or buy coins or small bars.

When you choose to buy small bars or silver coins this can cost you 10% more over the spot value of the metal. This is even before accounting for any tax for local sales. For instance silver bought in the UK has a VAT running a further 20%, and this cost cannot be reclaimed when a person sells. This makes a typical loss between silver buying price and selling price worse still for private individuals.

No sales tax has to be paid on BullionVault. When you buy silver in Switzerland, it’s traded in the tax-free Freeport zone in Zurich. Customers buying silver in London avoid the 20% sales tax in UK as BullionVault receives recognition when the silver is stored by a professional participant in the London-market, the tax gets triggered only when your silver is withdrawn from the vault.

Investors who buy silver coins or bars normally must arrange storage themselves which if kept at home poses a significant security risk. For this reason, trying to insure silver that is privately held can be way more expensive when contrasted against the fee for combined storage and insurance at BullionVault.

ETFs (Exchange traded funds) track the price of silver using complex derivatives and may be without backing by bullion. The dealing is restricted only to the stock market hours. For silver ETFs, the annual fee is about 0.50% which is deducted from the quantity of silver that backs the shares daily.

The “close-end funds” which are other trust-fund products track the silver price less closely. Because they irregularly change the quantity of silver which backs their shares only, the share price may vary sharply from the underlying silver which is known as the Net Asset Value.

Silver dealing and storage charges

The dealing commission a person gets to pay on BullionVault live markets is the lowest around, it starts at just 0.50% for a person’s first trades and it decreases over time with the amount traded. The custody charges 0.48% annually are inclusive of the insurance.

Please note that a monthly minimum of $8 exists for storage. This is markedly cheaper contrasted with a number of allocated silver programs. The monthly fee for storage is charged to your cash balance and gets deducted in British Pounds or US Dollars, Japanese Yen or Euro equivalent.

You simply need to open an account in order to buy silver bullion through BullionVault.

Conclusion

With BullionVault, a person can purchase silver online at a low premium for trade by the gram. Currently no physical delivery of silver is offered by BullionVault but physical storage silver for a person to trade 24/7 worldwide.

It is very easy opening an account with BullionVault. You need to upload a bank statement and a digital image of a photo ID to verify your identity. You then can purchase through your bank account and get the funds when selling.

To lower the costs for their customers, BullionVault purchases 1000 ounce silver bars only for storage in their vaults. There are five different vault locations that BullionVault can store your silver, New York, Singapore, London, Toronto and Zurich.

The safety of your silver is insured by BullionVault and it is completely insured. The BullionVault site is also simple and very effective. An extensive FAQ section is also available.

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