The most cost effective way to purchase gold is buying 12.5kg bars. Hands down the best place to purchase physical 12.5kg gold bars is BullionVault.com. BullionVault are the world’s largest online investment gold service.There you get the cheapest prices, as instead of being a broker and charging fees they are a Gold and Silver platform meaning you buy directly from another seller. This means no commissions. Instead Bullion Vaults makes its money from customers who want their Gold safely vaulted. Within their global vaults is 3.8 billion dollars of Gold, Silver and Platinum, making them one of the largest private holders in the world. Infact they hold more precious metals than some central banks.
Getting Started On BullionVault.com Is EasyOpening an account with BullionVault.com is easy and takes just a couple of minutes. Once you have done that and funded your account you have instant access to the best priced Gold on the internet.
Actually taking a step back, once you open your account they will fund it with 4g of Silver and a small amount of cash. This is done for free as a bonus for just opening an account with them but this enables you to get used to their platform before funding your account to buy a 12.5kg gold bar.
We like this (who doesn’t like freebies) as it gives you a chance to try out the buying and selling features and see how it all works before buying a 12.5kg bar for yourself.
How BullionVault Works
Buying ‘Physical’ 12.5kg Gold Bullion
Most of the Gold traded today is what’s called ‘Paper Gold’ and not real ‘physical gold’. Paper Gold is commonly traded on trading platforms such as eToro where people can speculate on the price of gold without actually owning any or the gold even physically existing!
Physical Gold on the other hand is as it sounds, gold which physically exists, that you own and can hold in your hands or keep in a vault. Physical Gold is the type of Gold which Bullion Vault sells and it’s what any serious investor should have in their portfolio to hedge against inflation and market crashes.
Why BullionVault Is The Best Way
BullionVault have a few unique points which place them firmly at the top of the pecking order. Ofcourse price is one of them.
This comes from charging zero commissions and allowing buyers to directly purchase from sellers as it cuts out the middleman.
But price will get a customer but how they keep customers is by firstly only offering LBMA ‘Good Delivery’, investment grade Gold, held in vaults in London, Zurich, Singapore, New York and Toronto.
Secondly, BullionVault went a step further…
You can buy LBMA bars for great prices or smaller amounts of gold bars. How this differs from traditional gold purchases with other firms is; if you want a 12.5kg bar of physical gold you have to buy it outright. And perhaps that is what you want to do and BullionVault obviously offers this.
But they also offer something ‘better’. With BullionVault you can take advantage of their great Gold prices as they buy in bulk quantity but you can buy it right down to small 1 gram increments.
So they purchase the gold in huge quantities this in turn offers great savings to buyers who can buy whole bars or parts of bars right down to 1 gram increments.
The Bottom Line
It’s very simple and very brilliant, as it finally allows investors to access physical Gold without commissions, in amounts from as small as 1 gram increments. And that offers huge savings on larger 12.5kg gold bars.
Quicker, Faster & Far Cheaper – By Just How Much?
Register on BullionVault in two minutes and you have access to their live markets order board meaning you can see the prices of Gold being sold in, for example, their London vault.
With BullionVault you can purchase large quantities of Gold at the best prices, very quickly. We are talking about within just a few minutes of funding your account.
Now compare that to other ‘online dealers’ who deliver gold by post like BullionByPost, who can take upto 6 weeks to fulfill 12.5kg gold bar orders (see their website its plainly written there).
This is pointless and leaves you exposed to price fluctuations for upto 6 weeks whilst awaiting delivery, plus it can’t be done online and must be done over the phone.
Gold is cheaper to purchase on BullionVault than other Gold dealers (who charge commission) by about £1,000-£1,800 per kg. So if you were to buy a 12.5kg gold bar that saving would equate to between £12,500-£22,500.
Now that’s quite a saving and already gives you a cushion for any adverse movements in price. It also means you can buy more Gold than you could from other dealers.
To Vault or Not To Vault – That Is The Question
Vaulting Gold isn’t free but it is cheap. There are other options of storing Gold such as safety deposit boxes or keeping it at home in a safe. But neither are that cost effective.
Compare vaultage prices to adding a 12.5kg bar to your house insurance policy (if they will allow it) and the result is, keeping it at home even in an approved safe, will be far more expensive than vaulting.
BullionVault charges just 0.12% per annum vaultage fees. That’s about 10 times cheaper than keeping it at a bank and about 3 times cheaper than just the management fees on any major Gold ETF.
Don’t want to vault your Gold – no problem. Clients can withdraw their Gold at any time even on the day of purchase. You do not have to vault your Gold just because there is a cost saving benefit and a small number of investors still like to have physical gold within reach at all times to, as billionaire investor Warren Buffet puts it ‘‘coo over’’.
But knowing you can safely buy, sell and vault Gold through BullionVault is of great benefit especially as they have a Gold vault in London, which is easily accessible to anyone, especially those already residing within Britain.
Key Points To Bear in Mind When Deciding
When considering the resale of any Gold, investors prefer vaulted Gold. Investors place a great emphasis on the quality of gold bars and storage is a big part of this. Knowing it’s been professionally stored and looked after with all the correct stamps and serial numbers matching up, is of large value.
There are costs associated with shipping and insuring Gold both from vaults and back into vaults too.
BullionVault only charges 0.12% pa for Gold vaultage. So factor in the savings made when you buy gold from Bullion Vault and you could argue these savings will pay for the vaultage fees for between 10-20 years anyway. So in effect you are getting the vaulting for free.
Should I Pay in GBP or USD?
BullionVault accepts payments in GBP, USD, EUR & Japanese Yen, meaning you have no currency conversion costs at all.
Because what you don’t want to happen is any gains made on your gold holdings to be diminished by an adverse move in the foreign exchange price.
For example let’s say Gold went up 20% in value and you wanted to sell to take advantage of this. If you bought Gold in Dollars (at the Sterling rate at the time of purchase) when you come to transfer back from Dollars into Sterling and the FX rate has unfavorably moved by 20% then you have just wiped out all the gains made on your Gold.
Therefore by buying 12.5kg Gold bars in GBP (Pound Sterling) through BullionVault you hold no currency risk and as such makes the Gold investment even safer in risk adjusted terms.
Here’s A Curveball
Gold is fantastic and has more embedded optionality than most investors think. For instance you might want to pay for Gold in USD as you think that the dollar will remain strong and the dollar could infact rise against other currencies.
So if the price of Gold rises and you think the dollar will rise in value too, you actually have two winning bets plus a hedge against weaker currencies.
- BullionVault are the worlds largest online gold service. On there you will find the cheapest gold prices and see a saving of between £1,000-£1,800 per kg.
- You can continue to have the Gold vaulted, in either London, New York, Toronto, Singapore, Switzerland for 0.12% pa (10X cheaper than keeping it at a bank and even 3X cheaper than Gold ETF charges) or withdraw your Gold and keep it at home.
- Pay for your Gold in one of the following currencies GBP, USD, EUR & Japanese Yen. Hereby avoiding any cross currency charges.
- TrustPilot rated ‘Excellent’.
- Register on bullionvault.com to view the massive savings on 12.5kg gold bullion.