How to Buy Gold Bullion

Segregated Vault Storage

A segregated vault storage account is used by people who buy gold but do not take possession of their gold. They want their gold stored in a secure vault separately from the gold owned by others.

In a segregated vault storage account, your gold is stored on its own shelf space. This method has some advantages and disadvantages. Let’s look at segregated vault storage a little more closely.

Segregated Vault Storage Advantages

Your gold is stored safely in a vault. You can only imagine the security precautions taken by a vault owner with millions of dollars worth of gold. These precautions far exceed any you could take storing your personal gold in a home safe.

Your gold is insured against any theft or damage losses. The insurance charges are included in your monthly storage fee. Storage of gold in your home typically requires additional insurance or riders on your homeowner’s policy. Items stored in safety deposit boxes at your bank are not insured by your bank.

Your gold is stored separately from gold owned by others. You are allocated shelf space where your assets are stored. Your gold is not commingled with that of other investors. Periodic inventories are performed to insure that the gold on your self matches your ownership records.

You have full legal ownership of your physical gold. Gold bars or coins in your account are in your name, stored safely on your shelf space by the vault operators. This is unlike a pooled account where your ownership of a portion of the gold held in a vault is merely recorded on a computer.

You can take possession of your gold at any time. There are no fabrication fees required, as in a pooled account. The vault operators can package up your gold and send it to you. It will be sent to you insured and your responsibility for its safekeeping starts when you physically receive it.

Segregated Vault Storage Disadvantages

The major disadvantage of segregated vault storage is the somewhat higher monthly storage fee required to maintain your gold.

With a pool account, you own an unspecified amount of gold store in a vault. In a segregated vault storage account you own specific gold bars or coins. Maintaining the private holdings of individuals takes a bit more effort so the expenses are somewhat more.

Segregated Vault Storage Costs

Several popular international gold dealers offer segregated vault storage accounts. The costs are as follows:

BullionVault: Gold can be stored in Zurich, London or New York. Costs depend on the amount of gold stored and are 0.01% per month with a $4 minimum.

GoldSilver.com: Gold can be stored in Salt Lake City, Hong Kong or Victoria, Canada. Monthly fees are 12¢ per ounce for Salt Lake City and Hong Kong (minimum $20 Salt Lake City, $25 Hong Kong) and 16¢ per ounce Victoria, Canada with a minimum of C$20.

Many people think the segregated vault storage accounts are the best way to securely store gold as part of their overall investment strategy.

No related posts.