Tag Archives: Buy Gold

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!

Cheers,

Alan.

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?

bullionvault

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.

Cheers,

Alan

Is it time to buy gold?

It would appear that the euphoria over gold has quickly diminished and many of gold’s
greatest proponents, who were calling for gold to go over $2,000 an ounce, appear to
be disheartened and shell-shocked by the recent sharp downturn in gold.

http://www.ino.com/info/589/CD3336/&dp=0&l=0&campaignid=3

There’s an old adage in trading and it goes like this, “they slide faster than they glide.”
This is true of all markets and what it means is they go down faster than they go up.

In my new video on gold, I share with you some of the thoughts I have right now on
this market. We could be looking at some great buying opportunities if just a few
components fall into place.

http://www.ino.com/info/589/CD3336/&dp=0&l=0&campaignid=3

You are more than welcome to watch this video there is no charge and no registration
requirement.

All the best,
Adam Hewison
President of the INO.com
Co-founder of MarketClub

Own and sell silver at BullionVault

bullion_vault-logo.png

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
BullionVault

Cheers,
Alan
http://alansmoneyblog.com