I have been surprised to see that an increasing number of readers of my popular Scams page reached it by searching for bullionvault scam. Is it the “if it sounds too good to be true, it usually is [a scam]” cynicism? Probably, and that is why potential investors in bullion are performing ‘due diligence‘ before dealing with a gold or silver supplier.
Fortunately, from my personal dealings over four years now with this British-based bullion exchange, I can confirm that BullionVault is not a scam! Endorsed and recommended by the World Gold Council, full members of the London Bullion Market Association, BullionVault also won the Queen’s Business Award for Enterprise: Innovation in 2009.
I’m pleased (but not surprised) to see that what has been written about their operation is all good and it’s all true and scam searches reveal nothing negative. I’m also glad that more and more Internet users are becoming aware of the many scams out there; their suspicion and awareness might well save them from losing a lot of money.
In 2007, I opened my account at BullionVault which is UK-based but keeps its (and its account holders’) bullion in Via Mat’s vaults in the US, UK and Switzerland; account funding is via Lloyds Bank UK which also has US and European facilities for international clients. I quickly learned how to use the trading system and began accumulating some gold, and later when they began offering it, London silver. See below the consistent price rises in that time alone.
BullionVault’s 25,000 funded account holders own over 22 tonnes of gold worth over $1 billion, plus $163 million worth of silver, all stored in Via Mat vaults in either London, New York or Zurich. This makes it the world’s premier direct gold ownership organisation. Client accounts are subject to independent daily audit of every gram of each bar and the names of registered owners are attached. Members buy, sell and trade gold and silver among themselves at the full spot market price (often better) in either USD, EUR or GBP.
All new accounts at BullionVault.com are credited with a free gram of gold, now worth over $50, £30 or €36 (or a gram of silver). Fees are very low: $4 a month storage for gold ($8 for silver which takes up a lot more space!) and 0.8% per transaction – much less than trading stocks or forex with a bank or broker (and the inherent higher risk of loss).
Since opening it in 2007, my account balance has risen significantly every year, due to the continuously rising prices – as well as from additional purchases. According to most ‘experts’, gold and silver prices will continue rising against the US dollar and other main currencies for the foreseeable future.
For me, it’s a ‘no-brainer’. I can sell a portion at any time and could immediately remit the proceeds to my bank account, but I usually leave cash in the account, ready to buy again on a temporary price correction. For those who don’t mind some risk, this can be a lucrative form of trading. But buying and holding is fine too.
I would advise anyone opening an account to fund it as soon as possible, simply to be ready to buy when the price has dropped, as it often does before going on to new highs. No one likes paying ‘top dollar’. However, there is a risk that if you wait too long for a lower price, you may get left behind and have to buy at a higher price than you expected!
For me, the BV charts are an excellent source of historical gold and silver prices and how they have risen over various time periods, from minutes to hourly, daily, weekly, monthly, quarterly and over recent years. Here’s an example of a BullionVault live data chart for gold over the past 5 years to 11 August 2011 and below is the same for silver.
In addition, account holders can earn modest commissions by referring others. For example, if someone I refer buys or sells $2,000 worth of gold or silver at the spot market price, they pay $16 (0.8%) for the transaction; my own account is credited with $4 by BV. It’s not much but it’s enough to pay my gold storage fees for a month. Anyone who opens an account (even before it’s been funded) can do the same. Visit the website to see how.
The main reason I buy gold and silver is for its future value in currency terms rather than protection from the financial ‘Armageddon’ forecast by some. That gold bullion is mine legally, and with a sufficient quantity I could even take delivery of it in the unlikely event of the whole global banking system failing. It’s somewhat comforting to know that, even though it’s a worst case scenario and not in my thoughts at this time!
Here are silver prices over the past 5 years in US dollars, having risen by 300%:
The BullionVault operation is explained in detail on their website which includes a sophisticated but easy-to-use 24/7 online trading platform and of course the charts. There are no trading hours as with most other exchanges, including forex. However, best prices are usually found when the financial markets are active around the world.
How to open an account at BullionVault.com
Sign up simply with your name and email address. Immediately receive a gold or silver gram to try out the system by selling it if you want. When you are ready, add funds from a bank account to buy more gold or silver bullion. You will need to confirm your identity (online) before withdrawing funds to the same bank account.
I rate and recommend BullionVault highly from my personal experience with this company since 2007. See examples of my own orders; the R-A Bullion Page has more information on gold and silver investment.
Other ways to hold precious metals
Not everyone wants to own gold and silver in this manner. Some prefer to be in actual physical possession of it or keep it in a safety deposit; others like to display their precious metal bar and coin collections or move them easily between countries. Precious metals cost more to buy in this form and they cannot be traded as easily, but for long-term investment it’s a simple and popular method of investing in bullion.
Reliable sources include Amazon.com who offer a wide range of silver and gold coins and bars
