Vaulted is an app for buying and selling physical gold. Vaulted is a trade name of International Collectors Associates, a Colorado-based subsidiary of McAlvany Financial Group, which has been around since 1972.'
Types of investments Vaulted offers
When you invest using Vaulted, you are buying actual physical gold, which is stored in the Royal Canadian Mint. If you buy an entire bar of gold, they will provide you with the serial number of the gold bar. You can even arrange to visit your gold, or to have it shipped to you. You can also purchase smaller amounts of gold – the minimum investment is $10.
What do you get when investing with Vaulted?
With Vaulted, you are buying actual gold, so there is no “security” (like a stock or bond) involved.
How does Vaulted make money?
Vaulted charges an annual storage fee of 0.4% (calculated as 0.2% twice a year), which is deducted from your cash balance or from your gold balance. You can avoid the fee by having the gold shipped to you (but then you have to figure out where to store the gold). Vaulted also charges a commission of 1.8% when you sell your gold through their app.
Potential returns and cashflow
There is no cashflow associated with an investment in gold through Vaulted. Your return depends on the price of gold when you choose to sell. Following a trough in 2016, gold has appreciated by 76% over the past 5 years.
Regulatory framework and due diligence expectations
Because the gold you buy through vaulted isn’t an investment security, it isn’t covered by any SEC regulations. The only tax or regulatory implications of an investment with Vaulted is when you sell the gold. Gold sales are reportable to the IRS, and are taxable.