The problem with investing in gold is that it typically requires significant capital - limiting its accessibility to everyday investors. Vaulted is changing this. It allows everyday investors to easily and systematically invest in 99.99% fine gold bullion stored at the Royal Canadian Mint.
How you make money
Through Vaulted, you can earn a return through the appreciation of gold. Each gold purchase is fully allocated to a specific bar (or bars) of gold. All allocated ounces are your collateral guaranteeing your gold can be delivered to you. Neither Vaulted nor the Mint can sell, lease, or pledge gold allocated to you to any other party. You can find the serial number of each whole kilo bar allocated to you in the app and on your quarterly statement. The gold you are purchasing is 99.99% (.9999 pure) fine gold kilo bars, bearing the Royal Canadian Mint’s hallmark, as well as an imprint certifying weight and fineness. If you are a U.S. taxpayer, the only time you have to make a report to the IRS related to your Vaulted account is when filing your tax return, if you have sold gold.
How Vaulted makes money
There is an annual maintenance fee of 0.4%, or 40 basis points, based on the average value of the net cumulative gold purchases in your account. This maintenance fee covers their costs to operate Vaulted. The maintenance fee is charged semi-annually which means half of the annual fee is billed to the client each July and the second half is billed each January of the following year. Maintenance fees are generally subtracted from the cash balance in your Vaulted account. Alternatively, fees will be automatically deducted from your gold balance if a cash balance is not made available to cover the fees within 30 days of invoicing.
There is a one-time 1.8% fee included in all buy transactions. This fee is added to the wholesale price of gold at the time of your buy transaction. On the buy page of the Vaulted app they clearly show the current wholesale price, as well as your buy price. There is a one-time fee of 1.8% included in all sell transactions. The fee is subtracted from the wholesale price of gold at the time of your sell transaction. On the sell page of the Vaulted app they clearly show the current wholesale price, as well as your sell price, which is 1.8% lower than the wholesale spot price.
Is it safe?
Royal Canadian Mint manufactures every gold kilo bar sold by Vaulted and guarantees its weight and purity. Each gold bar has a unique serial number tracked by Vaulted and the Mint. Gold never leaves the Mint’s vault (unless you request physical delivery). Even in the worst case, all customer gold is stored in world-class vaulting facilities, and multiple secure, redundant copies of transaction history are maintained separately from the core Vaulted systems to ensure that your account and your gold is kept safe. The Royal Canadian Mint insures the gold that it stores through Lloyds of London and has agreed with Vaulted to provide full compensation for or to replace any gold that is lost, stolen, or damaged while in its custody and control. In the unlikely event of such a loss, the compensation or replacement gold provided by the Mint will become your collateral securing our obligations to you
Vaulted is owned and operated by McAlvany Financial Group and International Collectors Associates LLC, founded in 1972. Their history has enabled them to build a robust business that you can trust. Even in the unlikely event that McAlvany Financial Group/ICA were to go out of business, the gold you have purchased cannot be used to pay other ICA creditors, and you have a legal right to sell or take delivery of the gold purchased by you. The Royal Canadian Mint is a Crown corporation 100% owned by the AAA-rated government of Canada. In addition to being an exceptionally secure vault, the Mint physically stores all gold allocated to Vaulted customers as a custodian. In other words, the gold allocated to you is never on the Mint’s balance sheet. Even in case of a bankruptcy or liquidation, gold allocated to you cannot legally be used by the Mint or its creditors.