Business Technology

Investor buys a record £500,000 of gold through an app

2 min read

25 September 2015

London-based BullionVault – the world’s largest gold and silver online market – has received its largest ever trade through a smartphone app.

BullionVault recently claimed it had sold one individual 21kg of gold stored in its Zurich vaults for £500,310.60 in August – the highest value deal conducted via its app so far.

Launched in 2005, the company now has 57,000 users in 175 countries. Its app, which was launched in 2012, shows live gold and silver price charts in the world’s four major currencies – US Dollar, Euro, Sterling and Japanese Yen. Private investors can use the app to check their current holdings and cash balance, and place orders in London, New York, Singapore, Toronto or Zurich.

This enables private investors to buy and sell physical bullion inside professional vaults whenever they want, said Adrian Ash, head of research at BullionVault.

“Unlike any other physical bullion market in the world, our live order board remains open 24/7,” he said. “This record-breaking purchase shows the appetite for 24-hour access to the gold market, and the convenience offered by our app.”

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In 2014, customers used BullionVault to trade a monthly average of $100m (£65.85m) in gold and $65m (£42.80m) in silver. 

Although just eight per cent of the company’s clients use the app to purchase gold or silver, BullionVault said it regularly saw orders placed for “six-figure deals”. The company’s previous record set in February 2013 was when a customer bought £365,000-worth – or 10.7kg – of gold using an iPhone.

The record has now been broken, with a private investor having bought £500,000-worth of gold bullion through an app on their smartphone.

But while the method of purchase might have been innovative, the market remains as old fashioned. Ash suggested the gold had been purchased for £727 an ounce. The price on September 16 stood at £722. 

“Well, these things happen,” he added.