Your thoughts on storage options please

[Sunseeker]

Hello all

Total newbie to buying metals here, so I'm delighted to have stumbled across this site and thank you all in advance for your thoughts and wisdom!

Just looking to make my first purchase of gold and my head is spinning on two main questions:

1. Whether to take delivery or pay for vaulted storage from the dealer? Are there risks (other than the storage costs) of leaving it in the dealer's vault?? Like if the dealer went bust?? 
2. Why the dealer (Bairds) isn't listed on your Dealer Directory tab - does this indicate that they are not as big and reputable as I had thought????? 

Thank you all SO much in advance for your help on this!!

[Blehhhh]

Do both.

Store at Bullionvault. Only .5 percent fees, so you can miss premiums.

Buy direct from dealers and get delivered to your home. Gold is small, no harm in storing some with you.

[ChrisSilver]

21 minutes ago, Sunseeker said:

Why the dealer (Bairds) isn't listed on your Dealer Directory tab

Just added to the Dealer Directory list. 

All Premium Members can add additional dealers to the list should they wish  and we encourage them to do so, we also encourage members to leave reviews of dealers they have had interactions with. 

[Agpanda]

Hi and welcome to the forum from Sweden

[Sunseeker]

43 minutes ago, Blehhhh said:

Do both.

Store at Bullionvault. Only .5 percent fees, so you can miss premiums.

Buy direct from dealers and get delivered to your home. Gold is small, no harm in storing some with you.

@Blehhhh Thank you for your reply! I had not heard of Bullionvault, and so having just now had a peek at their website, it all seems a bit advanced for my level of understanding.  What proof do you get that you have bought some gold? I don't understand the format at all!

[Blehhhh]

12 minutes ago, Sunseeker said:

@Blehhhh Thank you for your reply! I had not heard of Bullionvault, and so having just now had a peek at their website, it all seems a bit advanced for my level of understanding.  What proof do you get that you have bought some gold? I don't understand the format at all!

I've been using them and had no issue, they have been around for many many years. Their biggest competitors would be goldmoney.com. You get an email with statement when you buy gold and you can logon and view holding at any time.

Obviously there is a level of risk involved. But there are  many advantages. You are much more liquid, can go back to cash very quickly. You can get in without paying big premiums, the current stupid premiums on silver being a good example. You dont have to worry about security.

The big difference between the likes of Bairds is you dont actually buy a physical bar, you are allocated a percentage of their gold which could be contained in giant bars. You can request delivery of gold but it isn't really viable for smaller quantities. 

[Paul]

26 minutes ago, Sunseeker said:

What proof do you get that you have bought some gold? I don't understand the format at all!

Have around 20% of my portfolio held with with bullionvault & goldmoney.  This videos things a little better for a newbie 

[Sunseeker]

@Paul Thank you for posting this link - I understand it much better now.  The burning question that I am left with is what happens if BullionVault just suddenly went into administration one day and so their website went down along with their phone lines - how on earth do you get your gold/money back??

[Blehhhh]

5 minutes ago, Sunseeker said:

@Paul Thank you for posting this link - I understand it much better now.  The burning question that I am left with is what happens if BullionVault just suddenly went into administration one day and so their website went down along with their phone lines - how on earth do you get your gold/money back??

They tell you that you legally have ownership even if they went into administration.

But of course that has never happened so remains to be seen what actually happens. 

[Paul]

9 minutes ago, Sunseeker said:

@Paul Thank you for posting this link - I understand it much better now.  The burning question that I am left with is what happens if BullionVault just suddenly went into administration one day and so their website went down along with their phone lines - how on earth do you get your gold/money back??

" Your ownership and title would not be affected, although there would likely be a short delay before you could realise its value, while a liquidator was appointed.

A liquidator could not claim title to your bullion. 
That’s because you are the legal owner of all gold, silver and platinum that you buy through BullionVault. 
BullionVault is acting as a custodian, which is a status that's very different from your bank, and immeasurably safer for you.

With a bank account, you transfer ownership of your money to the bank when you make a deposit. 
Your money then appears on the bank's balance sheet, and you become its creditor. 
The bank would become insolvent (and fail) if there were insufficient assets to meet the liabilities owed to all its creditors, and that tends to happen to banks periodically because their business is to lend your money for profit, not simply keep it in a vault.

You have not made a deposit of gold to BullionVault. 
You are not BullionVault's creditor and do not appear on its balance sheet. Technically your gold, silver and platinum is the subject of a bailment - a legal status through which physical property remains yours while it is in the care of another. A liquidator cannot consider it an asset of the company, so would have no claim over it and must return it to you in full."

Have a read through their FAQ's on their web site. As said above, you never know when you stabnd until it happens.  Bullionvault have a few billion worth of gold behind them.  Nothing is ever 100% safe in life.  Just never put all your eggs in one baskets with one bank, stocks, ETF's, bullionvault/goldmoney, physical, cash, fine art, wine/whiskey, diamonds, watches.

One eggs goes bad for you, it hasnt all gone tits up and failed