Bullion Vault Exchange Rate

xxtokerxx

Does any one know how this is calculated?


Basically I have just found out about this website, and really find it interesting buying and selling my gram I have manage to stay neutral even with the commission charges for 24hour! wahoo, better than loosing anyway.

So I wanted to dig deeper, make some cash out of this, but before investing I wanted to know how the exchange rates are calculated.

I did some simple Excel maths and noticed at any given point in time the exchange rate costs vary depending on which vault you buy from - so given some thought, I should be able to profit depending on which vault and currency I sell into (At the right time of course)

But how is this calculated, is it a set rule? fluxuates?

tradetime

xxtokerxx wrote: »

Does any one know how this is calculated?


Basically I have just found out about this website, and really find it interesting buying and selling my gram I have manage to stay neutral even with the commission charges for 24hour! wahoo, better than loosing anyway.

So I wanted to dig deeper, make some cash out of this, but before investing I wanted to know how the exchange rates are calculated.

I did some simple Excel maths and noticed at any given point in time the exchange rate costs vary depending on which vault you buy from - so given some thought, I should be able to profit depending on which vault and currency I sell into (At the right time of course)

But how is this calculated, is it a set rule? fluxuates?

Not sure, but since gold is priced in USD I would have thought their exchange rate was pegged to the interbank rate for the dollar pair you are using, and then the interbank rate from the host currency to home currency. I got the impression you chose where you wanted to hold your gold, and bought and sold in that market. All just speculation of course, does their site help section not cover exchange rates?

xxtokerxx

Unfortuately there is not detailin on the exchage rates they use, cause i am assuming you can profit by selling in different currencies, depending on the exchange rates

thrupence

xxtokerxx wrote: »

Does any one know how this is calculated?

I did some simple Excel maths and noticed at any given point in time the exchange rate costs vary depending on which vault you buy from - so given some thought, I should be able to profit depending on which vault and currency I sell into (At the right time of course)

But how is this calculated, is it a set rule? fluxuates?

Unfortunately you can't sell between vaults, if this is what you were thinking of doing. Each vault is a separate market. You'd have to sell in one vault and buy in another or vice versa.

The differences in pricing between each vault are down to the differing liquidity in each market. So, the Swiss vault is the most liquid and has the least spread because that's where about 80% of the gold is held through customer choice. The New York vault seems to be the worst because there's a relatively small amount of gold held there by Bullionvault customers.

What you can do is sell your gold for euros or dollars, if you think sterling will depreciate against euro or dollar, and you want to buy back in at a later stage when gold has gone down in value.

http://www.bullionvault.com/audit.do

gozomark

and give yourself two ways of losing money :rotfl:

thrupence

gozomark wrote: »

and give yourself two ways of losing money :rotfl:

If you want to sell your gold because you think it's got too high, and you want to buy back in when the price has gone down, it's actually quite a conservative strategy to sell into dollars.

You're reducing risk. The much riskier sttrategy is to sell into sterling.

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SpinnerB

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