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Trading in Silver: A BullionVault Review

BullionVault is owned and operated by Galmarley Ltd, a company registered in Great Britain (No. 4943684). Its address is BullionVault (Galmarley Ltd), Brook House (4th Floor), 229 Shepherds Bush Road, London, W6 7AN. You can see a list of their shareholders at Companies House. BullionVault is a full member of the professional trade body, the London Bullion Market Association (LBMA).

Cost of BullionVault

BullionVault give investors exposure to investment-grade silver at standard market prices. How much silver you buy or sell is at your discretion. The lowest silver investment is one gram at a time.

4 grams of silver for free

New clients of BullionVault receive 4 grams of silver for free upon account registration.

Premium/mark-up for buying and selling gold

Typically less than 0.2% in each case (buying gold or selling gold)

Commission for buying and selling gold

Commission 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.

Costs for storage and insurance

The 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.

0.12% per year on gold, billed monthly and subject to a monthly minimum of US$4.

Withdrawal fee for delivery of gold

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.

Withdrawal fees for funds

The potential cost of wiring funds direct to the clients’s bank is deducted from the amount withdrawn.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.

Automatic Gold Investment Plan

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’s ongoing charges for storage, including insurance, are as normal.

Additional fees

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

BullionVault Security

BullionVault has a sophisticated safety and security concept. Both Bullion Vault and its independent storage operator LOOMIS (formerly Via Mat) as well as Brinks for storage of gold in Toronto and silver in Singapore are members of the London Bullion Market Association. LOOMIS and Brinks belong to the largest global vault operators and secure logistics companies.

BullionVault publishes the holdings of each of its investors daily. The investors’ total holdings are listed under online nicknames. The vault operators LOOMIS and Brinks send a daily bar list of the total gold holdings which are then published on the BullionVault website.

The annual statements of BullionVault are audited by an accounting firm from the United Kingdom, and the gold bars in the vaults are inspected by an LBMA-accredited, independent inspection company.

BullionVault and LOOMIS/ Brinks have additional processes in place to increase the safety and security of their investors’ gold and silver. For example, the maximum daily withdrawal of gold from a LOOMIS vault is limited to 5% of the total gold holdings, and BullionVault must give 2 days’ notice of a bullion withdrawal to LOOMIS and publish the notice on the BullionVault website’s front page.

Withdrawal of gold is possible for clients of BullionVault, but additional fees apply (see costs of BullionVault below). For safety reasons, there are withdrawal restrictions on the transfer of funds. Normally, BullionVault only allows money to be returned to the bank from which the client’s BullionVault account was originally funded. There are exceptions, but these require additional security measures to ensure that money can only be transferred to the client and nobody else.

All buy and sell transactions of gold through the BullionVault platform are instantaneously settled, i.e. clients can only buy gold, when their accounts are funded. There is no settlement risk. BullionVault does not loan client gold to other investors without a written consent by the client.

The clients’ dormant funds are held in a segregated trust accounts at Lloyds TSB bank.

Every client has outright ownership of his/her amount of gold or silver. The gold becomes the client’s legal property. A potential default of BullionVault or LOOMIS/ Brinks cannot change this. The client would still own his/her gold. The finances of BullionVault are sound, and the World Gold Council is a strong investor in BullionVault.

How to become 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

Enter your data into the online registration form on the BullionVault website.

2. Deposit funds into 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.

3. Buy gold or silver

You can place an order as soon as Bullion Vault receives your deposit.

4. Prove your identity

Validate your identity within two weeks of funding your account. 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.

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