Precious Metals Forum

Go Back   Precious Metals Forum > Precious Metals and Economic News > Gold Bug

LinkBack Thread Tools
Old 08-11-2014, 12:53 AM   #1
Join Date: Aug 2014
Location: Maryland, USA
Posts: 1
Liked: 0 times
BullionVault math


I'm thinking about BullionVault. Here are my considerations. Am I missing anything?

They charge a minimum of $4/month for storage, so it makes sense to store at least the break-even amount, which at 0.01% is $40,000. But there's a 0.5% transfer fee too. So the minimum most-efficient amount to transfer (including a year's worth of storage fee) would be:

($40,000 + $48) / (1 - 0.005) = $40,249.25

The $4/month storage fee really offended me until I realized that's a total of 3% over 25 years while inflation has been knocking down the dollar by at least that much each year.

That's the low end. But there's the question about IRS Form 8938, which I might have to file if the balance goes even momentarily above $50,000. However, the help comment points out that the IRS guidance doesn't define what "directly held" means, so maybe I don't need to file it. And it's not clear what information FATCA would require them to file about me directly to the evil-doers at the IRS.

Therefore, setting an upper limit of $49,999 would be convenient to reduce the probability of becoming a red flag. But, of course, if the value of gold suddenly takes off or even "sky rockets" as some are predicting, I won't complain about the fees or any extra hassles.

Does anyone have experience with BullionVault?
Are my assumptions valid?
Are there any unexpected fees?

I'm assuming I can use ACH to transfer funds for free instead of wiring them for $30. Is this a valid assumption?
KenJackson is offline   Reply With Quote
Old 08-11-2014, 11:12 AM   #2
Golden Cockroach
PMBug's Avatar
Join Date: Oct 2011
Location: In Scrooge McDuck's vault
Posts: 7,094
Liked: 2456 times
Hi Ken, welcome to the forum. I don't have personal experience with BV, but we have an old thread here where a few members (and a rep from BV) talked about it:
The journey of a thousand miles begins with a single step. - Lao Tzu

Important stuff: PMBug 101 * Forum Guidelines * Support PMBug
PMBug is offline   Reply With Quote
Old 08-11-2014, 01:52 PM   #3
Yellow Jacket
rblong2us's Avatar
Join Date: Nov 2011
Location: off world
Posts: 1,996
Liked: 882 times
Hi Ken

I reckon you have the wrong set of worries driving your thinking.

Your real concern should be regarding what might happen in the event of a fiat currency wobble or worse.
I think you are right to look for value but in the event that pm's really shine through, its really about the integrity of the organisation storing your property.

If BV are storing ( and insuring ) your property and they seem to have a good set of audit systems in place, then the other consideratoins are possibly not so important.

While I feel the pain of seeing my pm holdings down by 20% and UK property prices up by something similar since I went all in, I would still rather be in gold and silver right now as it feels like the wheels are coming off the fiat game show quite rapidly.
if it cant be done with a digger .... it cant be done
rblong2us is offline   Reply With Quote

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

Similar Threads
Thread Thread Starter Forum Replies Last Post
Check my math benjamen STS 3 05-06-2015 11:38 PM
Math Question... No. 1? DoChenRollingBearing STS 10 05-01-2013 11:14 PM
Doing the math: what the FED's 2pct inflation goal and CPI massaging means for your purchasing power swissaustrian Fiat Ponzi 3 04-03-2013 12:10 PM
Is my math bad? (Junk silver) oppie2005 Silver Bug 6 10-14-2012 07:59 PM
The Math Behind Italy's 28,000 "Cash For Gold" Outlets Jay Gold Bug 2 08-30-2012 11:21 AM

All times are GMT -5. The time now is 11:14 AM.

Powered by vBulletin® from Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.
Content of copyright © 2011 - 2019 Measuring Up. All Rights Reserved.