BullionVault Explained

 This article is about investing in one of the biggest online Gold investment Websites - BullionVault.

Founded by Paul Tustain, BullionVault sits somewhere between Goldmoney, for safety and Gold storage, and the trading services mentioned earlier.  Bullionvault is UK-based, although an additionally interesting feature is the ability to store your gold in their New York, London or Zurich gold vaults.  Dependent on which country you are a citizen of, you will probably feel most comfortable placing your gold outside of that country so that is not subject to your local government jurisdiction, so top marks for considering that feature.

An interesting aspect of the three separate vaults is that these could be considered as separate currencies in their own right.  For example, if at some point in the future there was a repeat of the 1930s US Gold confiscation, gold stored in a New York Vault might become priced significantly lower than gold stored in a Zurich vault, as US holders try to sell and place their gold outside their own jurisdiction.

BullionVault allows you to buy and sell Gold on their impressive looking trading platform, where buyers and sellers of gold from each vault can meet and state their required selling/buying prices, so if you are more inclined to hold gold, occasionally sell on a dip, then buy in again later, then this could well be the best service for you.

Their fees for transactions and monthly storage are really low too, so they are very worthy of investigation.  The storage fee is currently $4 per month fixed, regardless of holding size, and only payable for the months in which you held Gold.

Again, Bullionvault has proved popular with Gold Bugs accumulating gold for the future financial crisis they believe is in the offing.

Payment into BullionVault is by bank transfer.  Payment out is by bank wire transfer to your chosen bank account.

In recent years, they introduced a silver option.  That they took so long may have been something to do with BullionVault being UK-based and the UK charging VAT on silver sales, which could, to many observers, seem to be another example of government getting in the way of free trade.

An Independent Review of The Fleet Street Letter

Okay, time for a shock confession.

A few years ago, I made the foolish mistake of thinking outside my normal realms of Investment Trusts on huge discounts and low-fee ETFs and started thinking of direct share investments.

Taken in by the "longest published newsletter in the UK...since 1937", I made the big mistake of signing up to the "Fleet Street Letter", or FSL.

While some of the articles on world politics and finances are interesting, the "letter" is basically a 4 page scrap of paper and their direct share tips are the biggest load of rubbish I have ever seen. This for three main reasons :-

1) The tips are recycled from other Agora publications, so by the time they make it to FSL they are no longer fresh or hot.

2) The articles subsequently get recycled into a variety of other publications, so you'll normally get to read them in the end - normally a week or two later in the free email advertising circular "The Daily Reckoning".

3) The letter comes out on a Friday, giving the thousands of subscribers a chance to know what the hot tip of the week is. Consequently, the market makers price up the shares on Monday, knowing that a load of Fleet Street Lemmings will pile in regardless.

Obviously the FSL performance figures are based on prices before this Monday, so there's no way investors can get in at the same price, but hey, it helps the performance figure look good when trying to sell it to new subscribers.

Please let this serve as a warning to anyone thinking of subscribing.

Just check out some of their tips in recent years : Widney, Wagon, Drax, Global Energy Development, Star Energy, Retail Decisions.

I admit to being taken in by the last one. I held the shares anyway, but their article made me think it was time to sell. It wasn't. They advised investors to sell at 140p just before the takeover at 200p!

Back to the world of ITs for me and the occasional direct share of my own choice. (Let the discount be your guide and don't be influenced by others, EVER!)