BullionVault
Encyclopedia
BullionVault is an internet gold
and silver
bullion exchange, founded in 2005 by Paul Tustain. It is owned by Galmarley Ltd. and based in London
, United Kingdom
. Purchased gold and silver is held in personally allocated storage with Via Mat International in either London
, New York
or Zurich
depending on the client's preference. BullionVault's commission charges range from 0.8% to 0.02%, and its custody charge (or gold storage fee) is 0.12% per annum, with a $4 monthly minimum charge.
Clients of BullionVault hold their gold in vaults controlled by BullionVault, thereby creating a legal bailment
. This is different from most other online gold facilities, which purport to create a digital gold currency
.
BullionVault enables users to buy and sell their gold at prices set by them, ensuring an open and competitive 24/7 market. To prevent money laundering
BullionVault asks new clients to provide proof of identity and address. Also unlike digital gold currency
, they do not allow the direct transfer of gold units between user accounts unless they are sold via the exchange facility. This contrasts with digital gold currency which may act as electronic money
. BullionVault also undertakes a daily audit to reconcile every client's holdings against the latest bar lists and bank statements.
In 2009, BullionVault was one of the winners of The Queen's Award for Enterprise (Innovation category).
As of 21st June 2010 and according to their website, BullionVault held over 20 tonnes (584,037 troy ounces) of gold and 62 tonnes of silver in storage. .
BullionVault is the sole operating business of Galmarley Ltd, company number 4943684 registered in England. Amongst others, Galmarley Ltd is partly owned by Lord Rothschild, of the Rothschild family
.
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...
and silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
bullion exchange, founded in 2005 by Paul Tustain. It is owned by Galmarley Ltd. and based in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. Purchased gold and silver is held in personally allocated storage with Via Mat International in either London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
or Zurich
Zürich
Zurich is the largest city in Switzerland and the capital of the canton of Zurich. It is located in central Switzerland at the northwestern tip of Lake Zurich...
depending on the client's preference. BullionVault's commission charges range from 0.8% to 0.02%, and its custody charge (or gold storage fee) is 0.12% per annum, with a $4 monthly minimum charge.
Clients of BullionVault hold their gold in vaults controlled by BullionVault, thereby creating a legal bailment
Bailment
Bailment describes a legal relationship in common law where physical possession of personal property, or chattel, is transferred from one person to another person who subsequently has possession of the property...
. This is different from most other online gold facilities, which purport to create a digital gold currency
Digital gold currency
Digital gold currency is a form of electronic money based on ounces of gold. It is a kind of representative money, like a US paper gold certificate at the time that these were exchangeable for gold on demand. The typical unit of account for such currency is the gold gram or the troy ounce,...
.
BullionVault enables users to buy and sell their gold at prices set by them, ensuring an open and competitive 24/7 market. To prevent money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
BullionVault asks new clients to provide proof of identity and address. Also unlike digital gold currency
Digital gold currency
Digital gold currency is a form of electronic money based on ounces of gold. It is a kind of representative money, like a US paper gold certificate at the time that these were exchangeable for gold on demand. The typical unit of account for such currency is the gold gram or the troy ounce,...
, they do not allow the direct transfer of gold units between user accounts unless they are sold via the exchange facility. This contrasts with digital gold currency which may act as electronic money
Electronic money
Electronic money is money or scrip that is only exchanged electronically. Typically, this involves the use of computer networks, the internet and digital stored value systems...
. BullionVault also undertakes a daily audit to reconcile every client's holdings against the latest bar lists and bank statements.
In 2009, BullionVault was one of the winners of The Queen's Award for Enterprise (Innovation category).
As of 21st June 2010 and according to their website, BullionVault held over 20 tonnes (584,037 troy ounces) of gold and 62 tonnes of silver in storage. .
BullionVault is the sole operating business of Galmarley Ltd, company number 4943684 registered in England. Amongst others, Galmarley Ltd is partly owned by Lord Rothschild, of the Rothschild family
Rothschild family
The Rothschild family , known as The House of Rothschild, or more simply as the Rothschilds, is a Jewish-German family that established European banking and finance houses starting in the late 18th century...
.
External links
- BullionVault, official website.
- PM: Bullionvault,GM,AFE, Comparative Review at Political Metals.
- gold bailment calculator, inBullion Gold calculator.