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Trading in Gold: A BullionVault Review

BullionVault is the world’s largest online investment precious metals trading platform, giving private investors access to the professional bullion markets. The company is owned and operated by Galmarley Ltd, a holding company registered in Great Britain (No. 4943684) which has over 60,000 active users and manages $2 billion in client gold and silver holdings.

BullionVault gives its clients the opportunity to buy gold and silver at the standard London Prices published on the London Bullion Market Association (LBMA) website. BullionVault is a full member of the professional trade body, the London Bullion Market Association (LBMA).

BullionVault securely stores client gold and silver in professional vaults, as a result, the custody fee covering storage and insurance is relatively affordable.

Cost of trading with BullionVault

BullionVault gives investors exposure to investment-grade gold at standard market prices. How much gold you buy or sell is at your discretion. The lowest gold investment is one gram at a time. The Premium/mark-up for buying and selling gold is less than 0.2% in each case (buying gold or selling gold).

The Commission for buying and selling gold, which applies both for the purchase of gold and for the sale of gold:

The first US$ 75,000 of gold purchased in the year so far: 0.50%

the next US$ 750,000 of gold purchased in the year so far: 0.10%

all additional gold purchased in the year so far: 0.05%

Computation of all commission tiers is done after 12 months. The commission rates reset to 0.5%, each year, on the day a client registered for his/her trading account.

The withdrawal fee for whole good delivery gold bars (400 troy ounces) is 2.5% of value. For smaller amounts of gold a surcharge of 5.0% applies.

The potential cost of wiring funds direct to the clients’s bank is deducted from the amount withdrawn. The charge is $30. Wire transfers in the European Union are free of transaction costs.

For BullionVault’s Automatic Gold Investment Plan special fees apply. BullionVault charges a transaction fee of 0.8% on buying and on selling gold at the daily London price.

BullionVault’songoing charges for storage, including insurance, are as normal. The insurance cover maintained by VIA MAT is at least equivalent to the value of all the precious metals VIA MAT holds on behalf of Bullionvault Customers. BullionVault is entitled to demand cover up to 50% in excess of the prevailing market value of precious metal, and to have the cover in place within 24 hours.

Further fees, e.g. for SMS text message notifications of account transactions can be found on BullionVault’s website.

Becoming a customer of BullionVault

In order to buy gold or silver with BullionVault, investors have to perform the following steps:

1. Open an account online with BullionVault

Opening a BullionVault account is free and only takes a short time. You can start a BullionVault account and make gold or silver purchases in less than 10 minutes. You only require a few simple details to open an account with Bullionvault.

Here is the procedure;

• Go to the main home screen at www.BullionVault.com

• Click on the “open account” button (top of your screen, in the middle).

• Fill in the username field. This is 6 to 12 letters and numbers without spaces. It becomes your account number. You’ll need to recall it to log into your account in future.

• Fill in the email field. BullionVault will use this to send you important communications like your monthly statements and dealing advices (whenever you deal). If you use many email addresses please enter your main one. It diminishes your safety if BullionVault cannot tell you at a trusted and used mailbox when there are things happening on your account.

• Fill in and confirm your password. This is case sensitive. You’ll need to remember it to log into your account in future.

• If BullionVault is running a promotional offer, your account may be created with a small bullion and cash balance already present. Read about our promotions here.

• Set the checkbox. You must confirm you have read, understood and agreed the Terms and Conditions. Press the “Submit” key.

After this, you should receive an acknowledgement on screen that your account has opened. Your account is immediately operable.

2. Funding your BullionVault account

Deposit funds into your BullionVault account. You can deposit funds in US Dollars, Pound Sterling, euros or Japanese Yen. Funds can be wired directly to BullionVault client account at Lloyds TSB in the United Kingdom. Customers in the US, Germany, France or Italy can also deposit funds through Bank of America.

Here is the procedure;

• Log into your account and go to the ACCOUNT > DEPOSIT page. Check that your bank country and currency are correct and change them if needed.

• You will be given all relevant bank details to help you make a bank transfer to BullionVault. Depending on your currency and bank country, you may have more than one banking options. 

• With your username as the transfer reference (sometimes referred as a memo or note), make a bank transfer to the appropriate BullionVault bank account.

• Bank account holders in the UK are allowed to make their initial deposit using a debit card. However, this deposit can’t surpass £5,000. Bank transfers are used to make successive deposits and those above £5,000. BullionVault doesn’t accept deposits made through pre-paid cards and credit cards.

• BullionVault will require you to upload a scan of your linked bank account statement for some deposits, such as those made by debit cards.

As soon as your funds are received, the bank will send BullionVault a notification through an electronic mailbox.

3. Buy gold or silver

You can place an order as soon as your funds have cleared and are reflected on trading account Balance under ‘Currency’. You can purchase bullion onBullionVault’s Order Board or directly fromBullionVault’s markets via the Balance page.

4. Prove your identity

There are two reasons for this requirement; firstly, BullionVault is required by law to establish its clients’ identity. Secondly, it is much better when both BullionVault and you are in agreement on the reimbursement destination of your funds – for when you eventually withdraw your funds or sell your bullion.

You can validate your account online by providing a copy of your ID/ passport or driving licence and a copy of a statement from your linked bank-account. Alternatively, you can validate your identity by having a standard bank form stamped by your bank and sending it to BullionVault by post. You can fund your account and trade before you are validated.

You don’t have to validate your account before you fund it and buy gold or silver bullion. However, you should validate your account within 14 days of opening it.

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