Gold FAQ - Vaulted

Origin & Quality

Is the gold real?

Yes. Every gold investment is directly allocated to pure gold kilo bars stored in the Royal Canadian Mint. The Mint manufactures every gold bar and guarantees its weight and purity. Each bar has a unique serial number which is tracked and reported in the Vaulted app. The physical gold never leaves the Mint’s vault (unless you request physical delivery).

What quality is the gold?

Vaulted kilo bars are 99.99% (.9999) pure gold. Each bears the Royal Canadian Mint’s hallmark, as well as an imprint certifying weight and fineness.

Where does the gold come from?

Vaulted gold comes from ethically sourced locations from the mine or recycler all the way through refining and minting. Every ounce is conflict-free and chain of custody certified. The Royal Canadian Mint participates in the Responsible Precious Metals Certificate Program, which identifies and validates the chain of custody of incoming refining deposits.

Is the silver real?

Yes. Every silver investment is directly allocated to pure 1,000 oz London Good Delivery Bars. The silver bars are securely stored in the vaults of HSBC Bank in London where they are physically segregated from all other inventory. Each bar has a unique serial number, which is tracked and reported in the Vaulted app.

What quality is the silver?

The 1,000 oz silver bars have a minimum fineness of 999.0 parts per thousand (99.9% pure silver). The LBMA has strict requirements for the casting method, shape, appearance, and dimensions of all bars. Each bar is stamped with its serial number, fineness, and imprint of its LBMA-approved refiner.

Where does the silver come from?

All silver bars in Vaulted are sourced from refiners accredited by the LBMA. To ensure all precious metal holdings are conflict-free, refiners must comply with the LBMA’s Responsible Sourcing program. This includes annual audits, regular due diligence, and compliance with all relevant KYC and Anti-Money Laundering regulations. Vaulted silver is stored in the vaults of HSBC Bank, which means Vaulted clients are plugged into the largest, safest, and most liquid silver market in the world.

Buying & Selling

Fees

What are the fees to buy gold?

Premium: There is a one-time 0.8% premium included on all gold purchases.

Spread: The premium is added to the wholesale ask price, which is the price we pay to acquire your gold on the wholesale market. The ask price stays stable at 1% over “spot,” even during times of higher volatility.

Your buy price = Wholesale price + Premium

In total, you pay 1.8% over the “spot price” for gold. The Vaulted app clearly displays your buy price every time you purchase.

What are the fees to sell gold?

Premium: There is a one-time 0.8% premium included on all gold sales.

Spread: The premium is subtracted from the wholesale bid price (the price at which we sell your gold on the wholesale market). The bid price stays stable at 1% below “spot.”

Your sell price = Wholesale price – Premium

In total, you can sell gold for 1.8% below the “spot price.” The Vaulted app clearly displays your live sell price at all times.

What are the fees to buy silver?

Premium: There is a one-time 2.0% premium included on all silver purchases.

Spread: The premium is added to the wholesale ask price, which is the price we pay to acquire your silver on the wholesale market. The ask price stays stable at 1% over “spot,” even during times of higher volatility.

Your buy price = Wholesale price + Premium

In total, clients pay 3.0% over the “spot price” for silver. The Vaulted app clearly displays your buy price every time you purchase.

What are the fees to sell silver?

Premium: There is a one-time 2.0% premium included on all silver sales.

Spread: The premium is subtracted from the wholesale bid price (the price at which we sell your silver on the wholesale market). The bid price stays stable at 1% below “spot.”

Your sell price = Wholesale price – Premium

In total, clients can sell gold for 3.0% below the “spot price.” The Vaulted app clearly displays your sell price at all times.

What are the maintenance fees for gold?

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.

What are the maintenance fees for silver?

There is an annual maintenance fee of 0.6%, or 60 basis points, based on the average value of the net cumulative silver purchases in your account. Physical silver takes up considerably more space than gold (and the market is less liquid), which is why the fees are higher.

How are maintenance fees charged to my account?

Maintenance fees are charged semiannually, 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 or silver balance if cash is not made available to cover the fees within 30 days of invoicing.

Taxes

What tax and disclosure implications do I face as a U.S. taxpayer using Vaulted?

If you are a U.S. taxpayer, you only have to report to the IRS when filing your tax return if you have sold precious metals. By February of each year, we will provide you with a tax statement of all sell transactions in the prior calendar year. Your tax statement will show any potentially taxable gains or losses, which you may be able to use to offset gains outside your Vaulted account.

You are not required to report your Vaulted account to the IRS/FinCEN as a “foreign financial account” on FinCEN Form 114 (the “FBAR”), as your account is maintained by a company in the United States.

What tax implications do I face if I live outside the United States?

If you are not a US taxpayer, you are required to submit a W-8BEN before selling any assets on Vaulted. Click here to download the W-8BEN form.

Corporate accounts are required to submit a W-8BEN-E. Click here to download the W-8BEN-E form.

You can submit it to [email protected] or your advisor at any time. By February of each year, we will provide you with a tax statement showing taxable gains or losses. W-8BEN forms expire every 3 years. If anything on this form changes (such as your residence), you are responsible for resubmitting the form with the updated information.

Does Vaulted come with any tax advantages?

Gold-backed ETFs, other online gold accounts, and physical coins/bullion are taxed as collectibles in the United States, meaning they face a 28% long-term capital gains tax rate no matter the investor’s tax bracket. Most other assets, such as stocks, are subject to a 15-20% long-term capital gains rate.

Vaulted allows investors to own physical gold with the same capital gains tax treatment as stocks, which can be a huge advantage for Vaulted clients.

Taking delivery of your Vaulted holdings is not a taxable event, which means we are not required to produce a 1099 form on delivery.

This answer is not tax advice; please consult your tax advisor for guidance on your specific situation.

Security & Privacy

How do I know if the gold and silver are mine?

When you buy gold or silver in the Vaulted app, your purchase is allocated to a physical, serial-numbered bar. You have a direct legal claim to your metal until you sell your position or take physical delivery. Vaulted holdings never overlap and are never “pooled.” You always own a specific bar or a specific section of a bar (or bars). You can check your serial number(s) in the details section of the app or on your quarterly statement. All allocated ounces are your collateral, guaranteeing your gold can be delivered to you. Neither Vaulted nor the vaulting facility can sell, lease, or pledge your gold to any other party.

Are my metals independently audited?

Yes. Each year, Vaulted contracts a third-party auditor called Bureau Veritas to complete an audit of your metals. Bureau Veritas is the undisputed global leader in auditing and inspection services for mining companies, refineries, custodians, and brokerage firms. The auditor verifies our records against the records of the vault, visually checks for accurate serial numbers and purity, and weighs a random sample of bars.

Will anyone know I bought precious metals through Vaulted?

Only if you tell them. Gold and silver purchases through U.S. institutions such as Vaulted are not generally reportable to tax authorities or financial regulators. The dollar amount of your sale is reportable to the IRS: Vaulted is compliant with IRS regulations requiring all U.S. brokerage companies to report gold and silver sales on a standard form 1099-B. These forms are issued in the month of January immediately following the year in which you completed sell transactions.

How do I know your app is safe?

We follow industry-leading best practices for data security, including encrypting all data in transit and at rest, maintaining redundant, multi-location data backups, and upholding rigorously strict data access policies. The Vaulted platform is designed and maintained by engineers with a wealth of experience in the finance and technology industries and our platform is regularly vetted by multiple external 3rd-party vendors, including PricewaterhouseCoopers, to review the cybersecurity of our application.

Is multi-factor authentication available for Vaulted?

Yes. You can use Google Authenticator, Microsoft Authenticator, or the Authy app for two-factor authentication to add additional protection to your account. You can also arrange for call-back verification before any cash transfers out of Vaulted. To activate either of these options, contact your advisor or send an email to [email protected].

What company is backing this app?

Vaulted is a trademark of McAlvany Financial Group: 166 Turner Drive, Durango, CO 81303, USA.

McAlvany Financial Group was established in 1972 and is the longest continuously operating full-service gold brokerage firm in the United States.

How do I close my account?

Open the Vaulted application and navigate to Settings. Scroll to the bottom of the page and click “Delete Account” (https://secure.vaulted.com/delete-account). Follow the instructions on the page. You will need to send your request to [email protected] from the email address associated with your Vaulted account. Before submitting your request for account deletion, please ensure there is no cash, gold, or silver left in your account.

Funding My Account

How do I fund my Vaulted Account?

Login to your Vaulted account and navigate to the Transfers tab. From there, you can link your bank account to Vaulted. We use Plaid to link your checking account and process ACH cash deposits and withdrawals. Plaid is a third-party company that securely connects your bank to the apps you want to use.

Alternatively, you may fund your account by sending a wire transfer from your bank. You can find wire transfer instructions in the Transfers tab when logged into your account.

Plaid isn't working - I can't link my bank account!

Some banks may have trouble integrating with Plaid. If this happens to you, we always have the option of manually linking your checking account to Vaulted. This would allow you to perform ACH transfers into Vaulted and withdraw money on demand (as if you were linked through Plaid). Before manually connecting your account, we need the following documents from the client:

A bank statement dated within the last 30 days
A photo of a Driver’s License (or state I.D.)
A voided check for the account you want to connect with Vaulted (A photo of the check is sufficient if the name on the check matches the name on the Vaulted account, or if the address matches the Vaulted account or Driver’s License.)

These requirements come from the National Automated Clearing House Association (NACHA), which is the organization that manages the governance and administration of electronic money movement in the United States. If you want to connect your bank account manually, please contact your Vaulted advisor or contact our support team at [email protected].

How do I fund my Vaulted account from outside the US?

Are you outside of the US and want to fund your Vaulted account?

Option 1: You can send an international wire transfer. Simply contact your bank and send your desired amount using the International Wire Instructions in this document: Vaulted International Wire Instructions. Rates will vary depending on your bank and country of origin.

Option 2: Alternatively, Wise (formerly TransferWise) is a more affordable, faster way to send money abroad. Wise is an easy-to-use, borderless account which allows you to convert your currency into USD at the real exchange rate and send it to anyone in the world. If you would like to utilize a Wise account to fund your cash balance in Vaulted, follow the instructions in the document below. (Or just contact us – we are happy to help!)

Download the Vaulted & Wise International Transfer Instructions PDF.

Disclosure: Vaulted is a participant in the Wise Affiliate Partner Program which allows partners to earn commission on referrals for using the Wise service. Wise is a third-party solution, so Vaulted does not provide customer service when using their service nor do we ensure the transfer while it is in transit with Wise. To contact Wise, please visit their Help Center.

Withdrawing Funds

How do I withdraw funds from my Vaulted account?

Click the Transfer Tab and navigate to the box titled “Withdraw from Vaulted.” Enter the amount you would like to withdraw. Click “Next” and “Submit.” Your funds will appear in your linked bank account within a few business days.

My withdrawal says "pending." Why isn't it coming through?

If you funded your Vaulted account via ACH transfer, the funds may only be available for withdrawal after 60 days. You can still request a cash withdrawal, but the funds will remain in a “pending” state until the 60-day window has passed.

This regulation comes from the National Automated Clearing House Association (NACHA), which is the organization that manages the governance and administration of electronic money movement in the United States. Specifically, it deals with ACH Return Codes R07 and R10.

If you need your funds sooner, no problem! To withdraw your funds before the 60 days has passed, we need to collect the following documents:

A bank statement dated within the last 30 days
A photo of a Driver’s License (or state I.D.)
A voided check for the account you want to connect with Vaulted

More about this regulation:

NACHA established the 60-day ACH regulation to increase the security of their network. The 60-day transfer window makes it much more difficult for criminals to launder money or get away with hacking your bank account and irreversibly transferring your money somewhere else. All fintech companies must manage the 60-day window in their own way. Vaulted complies with the regulation by holding deposits in the Vaulted account for the full 60 days, to protect against fraud and provide maximum security for our clients’ holdings.

To avoid any confusion, Vaulted informs users about the NACHA regulation before you fund your account. The following notice appears above the “SUBMIT” button when you are confirming any ACH cash transfer: Please note: if you choose to fund an account via ACH, these funds may not be available for withdrawal until after 60 days.

This NACHA regulation has no impact on your ability to buy and sell gold. As always, you can purchase and sell gold whenever you desire. If you want to avoid the 60-day window altogether, you always have the option of funding your account through wire transfer. This allows us to instantly receive funds from your bank and deposit them in your Vaulted account. Wire transfer funds are then available for withdrawal immediately upon your request.

I'm trying to withdraw funds but the button is greyed out. What's going on?

If you originally funded your Vaulted account with a wire transfer and are now requesting an ACH withdrawal via a linked bank account, the withdrawal button may be greyed out. This is an extra level of security we set up for linked bank accounts. To withdraw your funds, you have a couple options:

Option 1: Request a Wire Transfer

Contact your advisor and request a wire transfer to your bank. Your funds will be sent back to you immediately.

Option 2: Make a Deposit

Complete a deposit into Vaulted with your linked bank account, and then make a withdrawal request. To ensure your linked bank account is genuine and functional, you must complete a deposit first. Then you can freely withdraw money from the Transfers tab.

Please contact your advisor with any further questions!

Physical Delivery

How do I take delivery of my gold kilo bar?

Vaulted gold is allocated to physical kilo bars (32.1507 troy ounces). If you own one or more kilo bars, simply call or email your Vaulted advisor and coordinate a physical delivery. The serial number on the bar will match the serial number displayed inside your Vaulted account.

How do I take delivery of less than a full kilo bar?

If you do not own an entire gold kilo bar, you can take physical delivery of smaller gold products. We will transfer your assets into smaller coins or bars, such as 1/10-ounce Gold American Eagles, 1-ounce Gold Canadian Maples, or 10-ounce Gold Bullion Bars. Tell us what you want at your doorstep, and we’ll make it happen.

Here’s how the process works for taking delivery of smaller denominations of metal:

Chat with your Vaulted advisor about which coins or bullion products match your preferences (select My Advisor in the Vaulted app for contact information).
Your advisor will send this information to our trade desk to process the trade.
Receive a notification from Vaulted detailing the gold products you ordered, the premium you paid for those products, and the delivery cost. The gold will automatically be deducted from your gold balance in Vaulted, and we will deliver your coins/bars right away!

How do I take delivery of my silver?

Vaulted silver is allocated to physical 1,000 oz silver bars. To take delivery of your Vaulted silver, you must choose to take delivery of your silver holdings in smaller denominations of metal, such as 1-oz silver Eagles, 1-oz silver rounds, or 10-oz silver bars. We cannot deliver 1,000 oz silver bars directly from the HSBC vault, as they weigh more than 60 pounds and would be extremely expensive to ship.

See the question above for details about taking delivery of smaller denominations of metal.

When can I take delivery?

You can request physical delivery of your gold or silver at any time. We will need to verify your identity before delivering any metals.

There is only one caveat: If your purchase was funded via ACH transfer, your funds must be in your Vaulted account for 60 days before any cash withdrawal or physical delivery requests can be processed. This comes from the 60-day NACHA regulation (see Withdrawing Funds tab for more information).

Please note: Vaulted can only deliver products to addresses in the United States.

How much does it cost to take delivery of a kilo bar?

If you take delivery of your gold kilo bar, Vaulted will pass on the Royal Canadian Mint’s and FedEx’s (or other carrier’s) shipping and handling costs to you. We also pass along the cost of insurance during transit. We do not charge any additional fees for physical delivery.

Shipping and handling costs are as follows:

Handling: The Royal Canadian Mint charges $50 per bar.
Shipping: Shipping costs vary depending on the carrier and delivery location (for FedEx next-day or second-day shipping to the continental U.S., the cost is generally $150 per bar). This includes the cost of shipping each bar from Ottawa to the Vaulted headquarters and then from the Vaulted headquarters to the client. The Mint will not ship metals directly to clients.
Insurance: The cost for insurance is $75 per bar. For security purposes, we ship and insure each kilo bar individually.

To summarize: each kilo bar delivery will cost a total of $275.

What happens if my metals are lost in transit?

All gold and silver is insured by Vaulted while in transit. If anything happens to it, our insurance carrier will compensate us, and we will compensate you for the loss.

Storage

Where is my gold stored?

Vaulted gold is stored at the Royal Canadian Mint in Ottawa, Canada. The Mint is located at 320 Sussex Drive, Ottawa, Ontario K1A 0G8. The RCM has been a leading precious metals custodian for over a century. We chose the RCM as our storage counterparty because of its excellent reputation and stringent security protocols.

Where is my silver stored?

Vaulted silver is stored in the vaults of HSBC Bank in London, England. HSBC Bank’s registered office is located at 8 Canada Square, London E14 5HQ, United Kingdom. HSBC is one of four institutions that make up the core of the LPMCL precious metals market, the most liquid and secure silver market in the world. We chose HSBC as our storage counterparty because they are an undisputed leader in the industry that consistently delivers the best pricing for Vaulted clients.

Is my gold safe?

The Royal Canadian Mint’s exceptionally secure vaults are supervised by security personnel and supported by state-of-the-art surveillance technology. All holdings are counted on a quarterly basis and audited annually by the Government of Canada’s Office of the Auditor General. The Mint is owned by Canada’s AAA-rated federal government. Canada is one of the most geopolitically stable countries in the world with a centuries-old track record of respecting property rights. Every gold bar is fully insured by Lloyds of London. Major ETFs, governments, and institutions trust the Mint to store billions of dollars in gold.

Is my silver safe?

HSBC Bank offers some of the most secure, trusted vaulting services in the world. The world’s largest gold-backed ETF, SPDR Gold Trust (GLD), stores its gold in HSBC’s London vaults, along with other large institutional investors and even some Central Banks. HSBC processes transactions with a high degree of confidentiality and stores all assets in high security vaults with industry-leading surveillance systems. Like all LPMCL members, HSBC follows strict security protocols for trading, clearing, settlement, and storage.

Risks

Could my data be stolen?

Vaulted is designed from the ground up with a foundation of security combined with a simple, powerful user experience. Our security measures include:

following industry-leading best practices to ensure your data stays private and secure
fully encrypting all data storage
maintaining redundant, multi-location data backups
upholding rigorously strict data access policies
hosting regular cybersecurity reviews by multiple 3rd-party vendors, including PricewaterhouseCoopers

We recommend activating multi-factor authentication on your Vaulted account for an extra layer of security. To activate MFA, contact your advisor or send us an email at [email protected].

If there is a long-term power outage, how would I get my metals?

All records are stored redundantly, and we regularly make backup copies offline so that in the event of a catastrophe, we have a record of all transactions and ownership. You will always retain your legal right to sell or take delivery of your gold and silver.

What if the app gets hacked or goes down?

Multiple secure, redundant copies of transaction history are maintained separately from the core Vaulted systems to ensure that your account and your precious metals holdings are kept safe.

What if Vaulted goes out of business?

Vaulted is owned and operated by McAlvany Financial Group, founded in 1972. Our history has enabled us to build a robust business that you can trust. In the unlikely event that McAlvany Financial Group goes out of business, your gold cannot be used to pay any creditors. You have a legal right to sell or take delivery of your assets at any time.

What if the Royal Canadian Mint goes out of business?

The Royal Canadian Mint physically accounts for 100% of the gold allocated to Vaulted customers at all times and insures all assets through Lloyds of London. The Mint is a custodian, which means your gold is never on the Mint’s balance sheet. Even in the case of bankruptcy or liquidation, your gold cannot legally be used by the Mint or its creditors. The agreement between Vaulted and the Mint requires that gold allocated to you must be segregated from the Mint’s own assets.

What if HSBC goes out of business?

Your silver cannot be used to pay HSBC’s creditors because it is never on the bank’s balance sheet. Our agreement with HSBC requires that your silver be physically segregated from all other inventory. HSBC always keeps a detailed list of weights, fineness, and purity of all bars owned by Vaulted clients. If HSBC goes out of business, nothing will change regarding your asset ownership.

What if my gold or silver is lost, stolen, or damaged while in the vault’s custody?

Our vaulting partners, the Royal Canadian Mint and HSBC Bank, have agreed to provide full compensation for any gold or silver that is lost, stolen, or damaged while in their custody. In the unlikely event of such a loss, the compensation or replacement metals provided by the vault will become your collateral securing our obligations to you. As soon as the Mint is ready to deliver the compensation or replacement metals, we will allocate it to you, aiming to restore your Vaulted account to normal operation. Please see the Vaulted End User Agreement for details.

In our commitment to transparency, Vaulted seeks to answer commonly asked questions and deal with customer concerns below. If you have a new question, we want to hear it! Please submit your question via email. We’ll reply to you personally and add a new FAQ.