Gold Bullion
For years, purchasing gold bullion was a luxury that only the very wealty or instiutional investors could afford. The reason, of course, had to do with the sheer dollar cost for purchasing gold bars of various sizes and weights. Today, there are a number of different ways that the average investors can participate in the value that purchasing physical gold can offer their portfolio. One of the companies that now allows for direct access to the bullion market is bullionvault. Below you will find out more about the professional bulllion market and the ways to participate.
Big gold bars & the professional bullion market
The most competitive gold prices in the world are enjoyed by the participants in the professional bullion market: large gold dealers, refineries, government agencies and bullion banks.This professional market only deals in what are known as Good Delivery bars. If you're not trading these bars you are excluded from their market - and their very competitive prices.
Weight : ~ 400 Troy Oz [12.44 kg]
Length : ~ 11 inches [28 cm]
Purity : > 99.5%
From the day they're first manufactured, Good Delivery bars are kept in bullion vaults recognized and monitored by the local gold dealing community. Every time bars are moved a careful record is maintained, showing continuous storage through trusted hands. This guarantees gold bar integrity in a way that keeping gold at home, or even in safety deposit boxes, simply cannot match.
The result is that professional buyers accept deliveries of these bars direct from the seller's vault without re-checking their purity - and that greatly reduces bullion dealing costs. This is why they're called Good Delivery bars.
Good Delivery bars are large - usually 400 troy ounces each (12.4kg). The professional market doesn't allow you to own part of a bar.
But having enough money to buy a whole bar or two would only solve half the problem. You still need that relationship with a formally recognized vault to look after the gold while you own it. The starting balance for an accredited storage account is 15 to 20 of these 400-ounce bars, and the agreements take a lot of time, cost and effort to set up.
These barriers keep private users out.
Direct access to the very best prices
BullionVault.com changes all this. It enables people from all over the world to own professional market gold and keep it in any quantity in officially recognized bullion vaults in London (UK), New York (USA), or Zurich (Switzerland).
All BullionVault gold is held in Good Delivery form. So when you come to sell, your buyer is able to trust the purity and weight of your gold, which is guaranteed by BullionVault itself because we know that you never had the chance to corrupt it.
So the dealing spread is typically 0.4%, about one-tenth of the equivalent cost charged to private customers for gold coins and small bars.
You can buy just a small portion of a 400-ounce bar. You can trade on-line in increments as small as 1 gram - currently about $20.
BullionVault is not a unit trust / mutual. There is no 5% front end subscription load. When buying gold you pay a commission whose maximum rate is 0.8%, falling progressively when you invest above $30,000 to the spectacularly low rate of 0.02%.
Storage charges are down to wholesale rates of 0.12% pa ($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, bypassing the gold dealers by using our order board.
You make a further big saving at settlement time too. You don't have to arrange for expensive armoured courier bullion collections.
Click Here to learn more about BullionVault and to go directly to their site.
