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BullionVault anyone know the skinny on this......
Julio
Posts: 2,501 ✭
good/bad, best thing since sliced bread or run Forest run. I have no clue, just heard a blurb on Bloomberg. Take care. jwws
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Julio
Posts: 2,501 ✭
Julio
Posts: 2,501 ✭
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<< <i>This Business is not BBB accredited
BullionVault Inc.
Phone: (212) 605-0198 575 Madison Avenue, 10th Floor, New York, NY 10022 View Additional Email Addresses http://www.bullionvault.com >>
That said, there are no complaints listed.
It looks like they store gold in Zurich, London, New York and Singapore.
<< <i>Subject to modest additional fees and taxes you even have the right to withdraw gold from the vault. Of course the huge majority of BullionVault users leave their gold right where it is, because that's the way they continue to be able to sell Good Delivery gold at spot market prices. >>
With this statement it looks like you will pay fees and taxes to take delivery of your gold, otherwise you keep it in the vault and can trade it within the vault (With other people that have gold in the vault) 24 hrs a day, 7 days a week.
From what I can tell, the company (BullionVault) owns a few tons of gold. They then sell you the gold while they maintain possession of the gold. You then buy/sell/trade within the vault with other members that have PMs in the vault. You can then sell your PMs and receive cash (Fiat money) without paying extra fees, or you can take delivery of your PMs for a fee (Which tells me they want to keep the gold on hand).
An interesting business model.
Although they say they are an open book and conduct daily reconciliation produced by its independent auditor's and published on their own website, I can't help but think this company has an empty vault and you and I buy into it buying imaginary gold. The thought is fortified when they stated that there are fees to take delivery of your physical gold.
Here is what they say about delivery,
<< <i>Delivery
Delivery (sometimes called settlement) is when you become the owner of your gold [NOTE this does not mean delivery to your home, this means delivery to your name]. For your safety it is vital that you take delivery, because that is when you stop being the balance sheet creditor of whoever sold gold to you.
But it is not vital that you take delivery into your possession. Private possession of gold is usually a mistake. [I found this odd] >>