Why Gold Isn’t Just for the Rich—How Average Investors Are Beating Inflation with BullionVault
Inflation is at its highest in decades, and smart investors are looking at gold as a safe bet. A study shows that gold used to make up about 2% of a portfolio. Now, it’s less than 0.5%. Don’t miss out on this key asset. Invest in inflation-proof gold through BullionVault’s secure vaults to secure your financial future.
Key Takeaways
- Protect your wealth with an inflation-proof gold investment through BullionVault
- BullionVault allows private individuals to buy physical gold bullion and own it directly as personal property
- Gold is stored in high-security accredited vaults around the world for optimal safety and security
- Enjoy 24/7 online trading and mobile app access to easily manage your gold holdings
- Safeguard your financial future by diversifying your portfolio with this reliable safe haven asset
Introduction to Gold as an Inflation-Proof Investment
In times of economic uncertainty and rising prices, smart investors are looking at inflation-proof gold investment to keep their wealth safe. Gold is known as a reliable shield against inflation. Its value often goes up when the value of paper money goes down.
Why Invest in Gold During Times of Inflation
When governments print more money to boost the economy, the value of money can drop, causing inflation. Investing in physical gold bullion helps keep your wealth’s buying power strong. Gold’s worldwide appeal and constant trading make it a safe choice for investors facing inflation.
Benefits of Owning Physical Gold Bullion
- Access to the global gold market around the clock
- Avoid counterparty risk associated with gold ETFs
- Maintain full control and ownership of your precious metal investment
Adding an inflation-proof gold investment to your portfolio can protect your wealth. It helps achieve long-term financial stability, even when the economy is shaky.
| Investment | AUM | Expense Ratio | 5-Year Return |
|---|---|---|---|
| SPDR Gold Shares ETF (GLD) | $56.7 billion | 0.40% | 10% |
| iShares S&P GSCI Commodity-Indexed Trust (GSG) | $1.1 billion | 0.75% | 4.88% |
| Vanguard Real Estate ETF (VNQ) | $54 billion | 0.12% | 2.27% |
| SPDR S&P 500 ETF (SPY) | $429.5 billion | 0.0945% | 10.86% |
| VanEck Vectors Mortgage REIT Income ETF (MORT) | $209 million | 0.43% | -6.69% |
| iShares Core U.S. Aggregate Bond ETF (AGG) | $94.2 billion | 0.03% | N/A |
What is BullionVault?
BullionVault is a new online platform that changes how we invest in precious metals. It lets investors own top-quality gold bullion in safe, insured vaults worldwide. This way, you get the benefits of owning gold without the usual problems and costs of other gold investment methods.
How BullionVault Differs from Traditional Gold Investment Options
BullionVault is different from other gold investment options in several ways:
- Direct ownership of physical gold bullion instead of paper certificates or shares
- Gold is stored in top-notch, insured vaults in major financial centers globally
- Access to gold at nearly wholesale prices, skipping the usual retail gold IRA or gold ETF costs
- Easy buying, selling, and withdrawing of gold, giving you control and liquidity over your precious metals portfolio
| Feature | BullionVault | Traditional Gold Investment Options |
|---|---|---|
| Ownership | Direct ownership of physical gold bullion | Ownership of paper certificates or shares |
| Storage | Secure, insured vaults in major financial hubs | Various storage options, often with additional fees |
| Pricing | Close to wholesale prices | Typically higher retail premiums |
| Liquidity | Easy to buy, sell, and withdraw gold | May face liquidity challenges |
BullionVault makes investing in physical gold bullion easier and cheaper. It helps individual investors diversify their portfolios and protect their wealth from inflation and market ups and downs.
Buying and Owning Gold on BullionVault
Investors wanting to add buying gold bullion, owning physical gold, and gold trading to their portfolio can do so on BullionVault. Here, they can buy gold in grams of 100% pure “fine” gold. This gold becomes their personal property.
BullionVault offers 24/7 online trading. This means investors can buy and sell gold at live market prices with low commissions. These commissions are usually around 0.5% for smaller transactions. The platform’s automated system makes it easy for individual investors to access the global bullion market.
One of the main benefits of owning physical gold through BullionVault is the option to take delivery of the gold. Investors can choose to have their gold stored in the company’s secure, insured vaults around the world. Or, they can arrange to have the gold shipped to their preferred location.
BullionVault’s platform is designed to make gold trading straightforward and efficient. It offers real-time pricing information, advanced trading tools, and a user-friendly interface. This empowers investors to make informed decisions and execute trades with confidence.
Overall, BullionVault offers a secure and accessible way for individuals to invest in physical gold bullion. It provides the benefits of owning tangible gold assets. At the same time, it leverages the convenience and flexibility of a digital trading platform.
Storing Your Gold in BullionVault’s Insured Vaults
Investing in gold is more than just buying it. It’s about keeping it safe and sound. BullionVault, a top online gold trading site, offers a great way to store gold. It’s both secure and affordable.
Secure Storage Options and Insurance Coverage
BullionVault keeps gold in top-notch vaults in Zurich, London, and New York. These vaults are run by experts and are fully insured. The cost of storage and insurance is just 0.12% of the gold’s value each year. This makes storing physical gold storage both safe and cheap, with full insured gold vaults coverage.
BullionVault’s secure gold storage has many benefits:
- Gold is stored in professional, insured vaults in big financial centers.
- It’s fully insured against theft and damage, giving you peace of mind.
- The annual storage fee is just 0.12% of the gold’s value.
- Gold is easy to access and withdraw, with no storage worries.
By picking BullionVault’s secure and insured vaults, investors know their gold storage is safe. They can focus on growing their wealth without worrying about their gold’s safety.
Inflation-proof gold investment
In times of economic uncertainty and rising inflation, savvy investors are turning to gold. It’s seen as a reliable inflation-proof investment. As governments print more money, the value of fiat currencies tends to decline. This erodes the purchasing power of cash and traditional investments.
However, gold has historically maintained its value during inflationary periods. It’s a trusted safe haven asset for preserving long-term wealth.
Investing in physical gold bullion through platforms like BullionVault can serve as an effective hedge against inflation. Gold is intrinsically valuable and rare. It provides a tangible asset that is less susceptible to the corrosive effects of inflation.
Unlike paper assets, gold cannot be devalued by excessive money printing or economic instability.
The relationship between gold and interest rates is another factor that makes it attractive. Gold usually increases in price when interest rates decrease and decreases when interest rates go up. With the Federal Reserve raising interest rates to combat high inflation, gold’s value is likely to remain stable or even appreciate.
This provides a reliable hedge against the rising cost of living.
Diversifying your portfolio with inflation-proof investments like gold can help protect your assets from inflation. By owning physical gold bullion, investors can safeguard their wealth. They can maintain their purchasing power during challenging economic times.
Selling Your Gold on BullionVault
When it comes to selling gold bullion, BullionVault makes it easy and fast. The platform offers 24/7 online access to live market prices. This lets users sell their gold anytime for the current spot price. BullionVault charges low fees, usually around 0.5% for small deals.
This means investors can liquidate their gold holdings with little cost. BullionVault’s high gold liquidity and easy access make it stand out. It gives investors more control over their precious metals.
BullionVault is also known for its transparency. It has a daily register that lists all gold owners under public nicknames. This gives users a clear view of who owns what.
Moreover, the platform’s bid/ask spread for gold trading is very low. It’s usually just 0.1% off the spot price. This is much better than the 7-10% spread in traditional coin dealer markets. It means BullionVault users get good prices when buying or selling gold.
The cost of selling gold bullion on BullionVault is very low. It’s just 1.2% for the whole deal. This is much less than the 5.8% to 13.2% loss that can happen with gold coins through traditional channels.
This cost-effective way of gold trading is a big plus for investors. It helps them manage their precious metal holdings efficiently.
Tax Implications and Reporting for Gold Investments
Investing in physical gold through BullionVault can have tax implications. This depends on where you live and your tax situation. In the United States, gold investments are generally treated as “collectibles” for tax purposes. This can lead to a higher capital gains tax rate than traditional investments.
Understanding the Tax Treatment of Gold Investments
BullionVault has a special structure. It helps U.S. investors possibly get a lower capital gains tax rate by filing the right tax forms. It’s wise to talk to a tax expert. They can help you understand the tax rules and reporting needs for your gold ira and other gold investments.
- Gold and silver investments are subject to capital gains tax, with the tax calculated based on the price difference between the purchase and sale.
- The IRS classifies gold and silver as collectibles, subjecting them to a maximum tax rate of 28% on long-term capital gains for individuals in the 24% income tax bracket or higher.
- Short-term gains for gold and silver held for less than a year are taxed as ordinary income.
- The cost basis includes the purchase price plus any associated costs like dealer premiums and storage fees.
- Physical gold or silver sales need to be reported on Schedule D of Form 1040, and Form 1099-B must be submitted to the IRS for certain precious metals sales.
| Asset | Average 10-Year Return | Maximum Tax Rate on Long-Term Gains |
|---|---|---|
| U.S. Stocks | 12.75% | 15% |
| Gold | 4.57% | 28% |
It’s key to know the tax implications of gold investments and reporting gold investments. This helps you make the most of your returns and follow tax laws.
Portfolio Diversification with Gold
Adding physical gold to your investment portfolio can offer great portfolio diversification benefits. Gold is known as a safe haven asset. It has low correlation to stocks, bonds, and other financial instruments. This makes it a good hedge against market ups and downs.
By investing in gold, you can lower your portfolio’s risk. You also help keep your wealth safe for the long term.
BullionVault’s platform makes it simple to include physical gold in your investment mix. You can store gold in insured vaults. This way, you get the benefits of gold as a safe asset and a hedge against inflation. Plus, you keep full control over your gold holdings.
Financial advisors suggest putting 5-10% of your portfolio in gold for diversification. This balance allows other assets to earn income. Options like gold mining stocks, mutual funds, or ETFs can offer dividend earnings. They still give you a link to the gold market.
Deciding to add gold to your investments should match your financial goals and risk level. Always get advice from a certified financial planner.
FAQ
What is BullionVault and how does it work?
BullionVault is an online platform for buying, selling, and storing gold and silver. It offers direct ownership of professional-grade bullion in secure vaults worldwide. This way, investors can own physical precious metals without the usual costs and hassles.
What are the benefits of owning physical gold through BullionVault?
Owning gold through BullionVault has many advantages. It lets you access the global gold market 24/7. You also avoid risks from gold ETFs and have full control over your investment. Plus, your gold is stored securely with insurance.
How does BullionVault differ from traditional gold investment options?
BullionVault offers direct ownership of physical gold in secure vaults. This is different from traditional options like ETFs or buying coins and bars. It provides the benefits of owning physical gold without the usual costs and hassles.
How can I buy and sell gold on BullionVault?
On BullionVault, you can buy gold in grams of 100% pure “fine” gold. It becomes your personal property. The platform offers 24/7 online trading with low commissions, around 0.5% for smaller transactions.
Where is the gold stored, and how is it secured?
BullionVault stores gold in high-security vaults in Zurich, London, and New York. These vaults are operated by professional dealers and are fully insured. The storage and insurance costs are included in a low annual fee of just 0.12% of the gold’s value.
How can investing in physical gold through BullionVault protect against inflation?
Investing in gold through BullionVault can protect against inflation. As governments print more money, the value of cash and traditional investments can decline. Gold, however, has kept its value during inflation, making it a reliable asset for preserving wealth.
What are the tax implications of investing in gold through BullionVault?
In the United States, gold investments are treated as “collectibles” for tax purposes. This can lead to higher capital gains tax rates. However, BullionVault has a unique structure that may allow U.S. investors to qualify for lower tax rates. It’s best to consult with a tax professional to understand the tax implications.
How can gold help diversify my investment portfolio?
Adding physical gold to your portfolio can diversify your investments. Gold has historically shown low correlation to stocks and bonds. This makes it a good hedge against market volatility. By investing in gold, you can reduce your portfolio’s risk while preserving wealth.
