LONDON, 30 November 2010 - Leading investor site the Motley Fool UK today highlights secure, low-cost physical gold storage at BullionVault in a report on a London investment trust.
"Personal Assets Trust [has] changed its strategy with gold," says the Fool, citing the trust's latest update for investors and noting that - where formerly it held 8.6% of its clients' assets in the London-listed Gold Bullion Securities exchange-traded fund - PNL has now switched to holding physical bullion outright.
All PNL says in its update is that "During the period the Company converted its holding in Gold Bullion Securities to physical gold bullion." But "Some trust watchers may conclude that Personal Assets Trust has discerned risks in holding its gold via even a physically backed gold ETF that aren't present with direct ownership," says the Fool.
First launched in 2003, exchange-traded funds give shareholders exposure to gold prices by "securitizing" the gold they hold in trust. Buyers do not own any metal outright.
Taking physical possession of gold "would have [meant] hefty costs and complications in terms of transport and subsequent secure storage of its horde." But "One rival direct gold-holding option, Bullion Vault, advertises a 'custody charge' of just 0.12%," the Motley Fool goes on, contrasting that annual fee with the 0.40% charge made by gold ETFs.
"At the volumes that Personal Assets Trust would be buying, [there's] a low initial commission, too. Bullion Vault claims stewardship of $1 billion in clients' money, so it should have the scale required to satisfy the trust."
You can read the Motley Fool's story here...
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