New silver bullion service launched for investors

Written by Ray Clancy

Wednesday, 24 March 2010 09:34

A world leading gold ownership service has launched a new silver bullion service to its online exchange in response to customer demand.

BullionVault, which already stores $660 million worth of gold bars on behalf of 16,500 customers worldwide, said its new silver service dramatically reduces the cost to private investors of physical dealing and ownership.

Its award winning online exchange enables private individuals to buy and sell ownership of that physical gold, setting their own price in open competition and now they can do the same with silver.

Silver trading and ownership at BullionVault is free from VAT sales tax, removing a big expense for UK and European users, it said. Precious metals analysts surveyed by the London Bullion Market Association (LBMA) recently forecast on average a 12% rise in silver prices for 2010. Some experts said they expect a 77% spike.

Currently trading around $17 an ounce, world silver prices peaked above $50 an ounce in 1980. Fears of rising inflation, plus the threat of a sovereign debt default, have once again seen a growing number of private investors turn to precious metals ownership.

‘Just as with gold, private investors have lacked a safe, low cost route to physical silver dealing and ownership. Our customers wanted a similarly easy and secure way to buy, own and sell silver, without being charged high fees,’ said BullionVault founder and chief executive Paul Tustain.

BullionVault users trade gold and silver directly with each other, buying and selling from one gram of metal upwards. All customer property is stored inside secure, professional vaults, retaining the bullion’s maximum re-sale value in the form of large, warranted Good Delivery bars, the standard unit of the professional wholesale market.

The only member of professional trade body the London Bullion Market Association dedicated to private retail investors, BullionVault was launched in April 2005. It became the world’s largest store of privately-owned investment grade gold in 2008.

BullionVault received a Queen’s Award for Enterprise. the UK’s most prestigious business award, in 2009.