I believe it is important to mitigate the risk of loss with your physical bullion by diversifying the locations where you hold it. To this end, I think it is wise to have some bullion on your property, some in secure storage off site, a portion stored with an ETF like CEF and ideally at some stored at a location overseas.
In order to obtain the overseas diversification, I like to use a company such as BullionVault. They have traditionally allowed you to buy, sell and store gold or silver at some of the lowest costs available, but those already low costs just got dropped even lower. BullionVault has cut the initial commission fee charged to its users, reducing it from 0.8% to just 0.5%!
One of BullionVault’s major advantages is that they offer one of the lowest-cost methods of ownership. This is possible because your gold is stored in large (400 oz) “good delivery” bars, the same bars held and traded by the largest bullion dealers, bullion banks and government agencies. Storage in these larger bars allows for lower costs of ownership, yet you don’t need to come up with $400,000 to buy one. You can buy just a small portion of one of these bars, down to just one gram of gold ($30).
The gold is your outright property, as delivery has been taken and it is stored for you physically. Every day BullionVault publishes the complete register of all its gold owners on the Internet – with each owner listed under a public nickname known only to themselves. This register reconciles exactly to the official bar list published with it. The bar list is produced by the vault operator, independently of BullionVault.
Buying and selling is settled instantaneously and you can withdraw your money and have it sent straight back to your original funding bank account. This set up makes BullionVault ideal for those wanting to hold gold and gain the benefit of its price appreciation with a low cost of ownership. BullionVault is also ideal for active traders, as it allows you to choose to behave like a market professional and quote prices. This allows the true trader a potential negative cost per trade, through the opportunity to earn the spread.
Storage charges are down to wholesale rates of 0.12% annually ($4 per month minimum) with insurance included. That’s less than a tenth of the storage fees charged by retail banks, and less than one-third the annual fees charged by typical exchange-traded gold funds (ETFs). BullionVault customers also save money because they deal directly with each other, willing seller to willing buyer, by using the BullionVault order board, which is open 24 hours/7days week. The sign up process is quick, easy and not overly intrusive.
The online bullion exchange, which now cares for more than 1 million ounces of physical gold for its users, and which already counts more than 6,000 Americans amongst its 43,000 customers worldwide, has recruited Miguel Perez-Santalla – a 30-year veteran of the precious metals markets – to establish its New York office as Vice President for Business Development in the Americas.
The new rate cements BullionVault’s position as the stand-out offer to private savers and investors wanting to own or trade physical bullion. Its users currently own more than $2.2 billion-worth of gold and silver.
BullionVault founder and CEO Paul Tustain said: “The US is the most competitive market on Earth, so you have to be very good at what you do to be chosen by an American customer. BullionVault does gold and silver, and 6,000 Americans have chosen us even before we have a presence in the USA. Miguel’s job is to help show the next 60,000 what 6,000 already found out for themselves.”
Mr. Perez-Santalla said: “BullionVault is simply the best choice for physical gold and silver today. In my 30 years in the precious metals business, I’ve never known a service so cost effective, transparent or easy to use.”
Check out the video below for a quick introduction and explanation of how BullionVault works.