Tag Archives: bullionvault

BullionVault Gold Saving Plan

Hello dear blog readers. It’s been a while since I made a post about gold, but I just recently found out about this exciting news from BullionVault that I had to share. Those of you who are regular readers of my blog know that I’m a big fan of allocated storage/marketplace provider BullionVault. The exciting news is that BullionVault has launched a “gold saving plan,” and it is precisely what it sounds like. With this you can regularly and automatically invest in gold. Here is how BullionVault describes their product offering:

“You can now build up regular savings in gold without needing to place orders yourself or deal directly on BullionVault’s online market.
BullionVault’s new Automatic Gold Investment Plan allows you to buy gold regularly with minimum effort.
Simply enable the new feature in your account settings and arrange for a monthly deposit into your BullionVault account from your bank. Each payment will then be used to buy gold automatically at the price set at the next London Fix, the global benchmark used in the professional wholesale markets.
A dealing charge of 0.8% applies. Your gold will be stored at the usual costs in the Zurich vault. You can stop making deposits or sell your bullion and withdraw your funds at any time, without notice or penalty.”

This is a very neat ability to have and I for one am seriously considering taking advantage of it. Check out BullionVault’s homepage for further details.

Happy investing everyone!



Gold: Not Just for Nutjobs

By: Zoe Tustain, BullionVault

Squirreling away a gold reserve no longer seems nuts…

THERE ARE some who seem to think only western speculators buy gold – either that or paranoid conspiracy theorists preparing for Armageddon.

This couldn’t be further from the truth. In fact, China and India alone account for more than half of the world’s gold demand, while central banks – not exactly known for being gung ho – are increasingly using their reserves to buy gold.

In fact, the world’s central banks bought more gold in the first half of this year than they did in the whole of 2010, according to figures published by the World Gold Council.

Away from the debt-laden economies of Europe and the US, both advanced and developing nations have added to their official gold bullion reserves:

  • South Korea almost tripled its gold reserves by buying 25 tonnes of gold in the last two months.
  • The Bank of Thailand bought 27 tonnes since March.
  • Mexico bought over $4 billion worth of Gold (about 90 tonnes) in the first quarter of 2011.

And it’s not just central banks. All across the world, private individuals are choosing to store more of their wealth as gold.

Take India. The world’s largest gold market last year spent a staggering 2.5% of its GDP on gold. Four years ago the figure was only 1.5%. The implication is clear – as India’s economy grows, Indians are putting a bigger slice of their income into gold.

In economic terms, Indians’ marginal propensity to buy gold – the share of additional income allocated to the metal – has gone up.

In 2006, Indians on average spent around $1.40 of every extra $100 they earned on gold. By 2010, this had jumped to over $7.

We find the same story in China – source of the world’s second-largest private gold bullion demand.

In 2010, the percentage of GDP spent on gold in China was a mere 0.4%, a figure dwarfed not only by India, but also neighboring Vietnam – where the equivalent of 3.1% of GDP was used to buy gold in 2010.

But if we look at China’s marginal propensity to buy gold we see the same sort of growth.

Four years ago, for every extra $100 of income in China, less than one third of a Dollar went on gold. By last year it had jumped to $1 – lagging behind India, but still a remarkable rate of growth.

Individuals in these emerging powerhouses have increasing confidence in gold and are willing to invest more of their money in it.

“Paper money is increasingly worthless and they are worried about inflation” explains Shi Heqing, an analyst at state-backed metals consultancy Antaike in Beijing.

Hardly surprising – China’s consumer price inflation rose to 6.5% in July – up from 3.3% a year earlier.

But why are people choosing to buy gold? Of all things, why an industrially useless piece of shiny metal?

Because, in a sense, it’s uselessness is what makes it so valuable. Because it has no industrial use – and because, unlike paper money, it cannot be produced from thin air via “quantitative easing” – its stock is stable over time.

Thanks to these properties, gold has proven itself as a store of value over thousands of years. And with returns elsewhere so difficult to attain – thanks to low interest rates and stock market weakness – investors are now more interested in preserving capital than chasing return.

So it is not a random choice that has led so many to buy gold. They’re choosing gold because it works.

They may be squirreling away a winter reserve, but these days, that’s not nuts.

Zoe Tustain

Zoe Tustain is working as a research assistant at BullionVault, the No.1 gold and silver ownership service for private investors.

(c) BullionVault 2011

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Gold Value: Where to Now?


Gold value presentation from Paul Tustain of BullionVault

Gold remains materially under-valued, says BullionVault founder and CEO Paul Tustain – even now, after 6 years of almost continuous price rises.

Based on historical data, in fact – plus his expectations of future inflation – Paul Tustain believes the true value of gold is nearer $3,844 per ounce today.

Leading finance columnists have already called his gold value analysis “a bold view…giving more reasons to buy gold.” Paul’s new 5-part presentation shows why. You can download this video here, for free.

Part 1 – Gold fundamentals (17 mins)

Part 2 – Debt and Keynes (17 mins)

Part 3 – Commodities & our standard of living (10 mins)

Part 4 – Western currency devaluation (24 mins)

Part 5 – Valuing gold (23 mins)

Gold, says Paul Tustain, can “rescue your finances when things go badly wrong.” Its value today comes because “our governments have behaved very irresponsibly,” he believes, “and we’re now not so different from the ‘banana republics’ which have lurched from crisis to crisis over the last 100 years.

“I think our future is likely to look a bit like their past.”

Paul Tustain’s gold value of $3,844 is not a prediction of its future price; it is what BullionVault’s analysis says the precious metal is worth today on a risk-adjusted basis, calculated as an actuary would value insurance.

Gold’s value is open to debate, of course. So you can challenge and judge what you think gold is worth for yourself, using the Gold Value Calculator which Paul created for his research.

Download the Gold Value Calculator used in Part 5.

Please Note: This presentation is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

BullionVault Gold Holdings Break $1 Billion – Up 49% On The Year!

bullionvault banner

Hello fellow gold bugs. I’ve got some gold related news to share with you. Gold holdings at my favorite online gold dealer BullionVault are now valued at over $1 billion, up 49% from a year earlier, the company said. The steep increase is a reflection of “continued demand” for gold as a store of wealth, BullionVault said.

“Despite a recent dip in prices below their all time high of $1,430 a troy ounce in early December, our $1 billion milestone indicates that demand for the traditional inflation hedge remains strong due to the ongoing threat of currency devaluation,” said Adrian Ash, head of research at BullionVault.

By volume, BullionVault customers now own more than 22 metric tons of physical gold, the equivalent to total gold holdings in Morocco and 4.5 tons more than in Sri Lanka. The dealer’s silver holdings now stand at more than 150 tons. BullionVault has over 21,000 customers in 97 countries, with an average holding of $48,000.

Good to see more people doing the smart thing and protecting their hard earned wealth by buying gold.

By the way, I syndicate all of Adrian Ash’s articles over at my finance blog, so if you’re intersted stop by.



Own and sell silver at BullionVault


Greetings to all ye precious metals investors! I bring good news. BullionVault, one of my favorite bullion storage providers, has just announced that, in addition to gold, their clients can now buy and sell silver as well. The silver will be stored in their London vault. Yep I know, I too would much prefer a vault in Switzerland, but I’m sure that choice will come sooner or later. Here is a copy of the e-mail I received from BullionVault’s president, Paul Tustain:

Dear BullionVault user,

You can now buy, own and sell silver at BullionVault, storing it
securely at low cost in the London vault.

It works in just the same way as you already deal and hold
gold. There is no VAT sales tax to pay. Our fees – detailed below
– are the lowest you will find.

We will be telling the wider world over the next few days and weeks,
but want to give you early access. Given the recent price action,
however, there may be something of a rush.

So to keep the market balanced, access is being widened on a
first-come, first-served basis.

If you are keen to trade silver, PLEASE REPLY to this email.

You will then join our priority list, and receive email notification
the moment that silver dealing is activated on your account.

All funded BullionVault clients will be enabled by January 2nd. If
you are happy to wait until then, there is NO NEED to reply.

Here are the facts you need:

#1. Silver Dealing Commission
Runs independent of gold, but is charged at the same rates. So
you’ll pay 0.8% on your first $30,000-worth of silver, 0.4%
on the next $30,000 and so on, regardless of your gold holdings.

#2. Silver Custody Charges
Also independent of gold, but slightly higher, because silver takes
up more physical space in the vault. You’ll pay 0.04% per month on
the silver you hold (minimum $8 charge). The annual rate is 0.48%.

#3. Silver Vaulting, Larger Deals & Withdrawal
Silver is available in London only for the time being. Larger
orders for one tonne or more (approx. $500,000) can be dealt
direct on main market. Please telephone for details.

As with gold, physical withdrawal out of the vault is available but
not recommended. On silver, it will cost 10% plus VAT (currently
15%) and is only possible in whole 1,000-ounce bars.

If you have any questions or need any assistance, please contact us and
we’ll be happy to help.

To join our priority silver waiting list, PLEASE REPLY to this email.

Kind regards,

Paul Tustain
Founder & CEO


Gold Spike: January 1980

Here is a bit of interesting info for you gold bugs out there.

Surging by more than 25% in the last 12 weeks alone, the Dollar Gold Price has now traded above $800 per ounce for three sessions.
It didn’t even manage that at its all-time top of Jan. 1980.

The famous peak of $850 per ounce – recorded at the Afternoon Fix in London on 21st Jan. 1980 – marked the end of a nine-year bull market in gold, unleashed when Richard Nixon cut the US Dollar free from its “golden fetters” and stopped paying foreign governments in bullion.

Nixon killed what little life was left in the Bretton Woods agreement, built amid the devastation of World War II to help Europe recover its faith in credit and currencies. The result?

“Inflation in most countries at the end of 1979 was running in double digits,” writes Peter Bernstein in his classic The Power of Gold. Pointing to the OPEC-led spike in oil prices, he also notes that “political conditions were perhaps even more frightening.

“Iranian radicals in Nov. 1979 took over the US embassy in Tehran…At the same time, the Russians were building up their strength in southern Yemen near Saudi Arabia, near Afghanistan’s border with Iran, and near Bulgaria’s border with Yugoslavia.”

Fast forward to Nov. 2007, and the US is now rattling sabers with Iran once again, even running a naval exercise this week in the Persian Gulf. The Straits of Hormuz – the world’s busiest shipping lane for crude oil tankers – were last week threatened by Iranian general Ali Fahdavi. He also said that Iranian suicide teams stand ready to attack any target in the Gulf.

Russia is also harking back to the flared-trouser glory of its Communist past, flying jets near to NATO airspace, murdering dissidents in London, and using its oil & natural gas resources as a kosh to beat its smaller neighbors.

“There are those who would like to build a unipolar world,” said President Putin at Sunday’s Unity Day rally in Moscow. “They would themselves like to rule all of humanity.”

Putin then laid a wreathe in Red Square to commemorate those soldiers who had built Russia into “a great power stretching from the Baltic Sea to the Pacific.”

Ignore the never-ending war in Iraq and Afghanistan for a moment, and move straight onto the oil markets, where prices above $90 per barrel are only a few cents off beating 1980’s top if you account for inflation. And then there’s the credit market, struggling beneath a mountain of bad debts while interest rates fall…cutting the value of money every time it drops in price.

“Mervyn King’s effective guarantee of the liabilities of the British banking system is much more significant than declining South African gold production,” says John Hathaway of Tocqueville Asset Management.

In other words, the panicked reaction of central bankers to the ongoing credit crisis makes Buying Gold attractive even before you consider the fundamentals of the Gold Market itself.

When gold last traded above $800 per ounce, Paul Volcker at the Federal Reserve fixed the Dollar by hiking US interest rates to nearly 20%.