What this brochure tells you

BullionVault The basics of BullionVault

Gold bar quality The public order board Currency Vaults

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How BullionVault looks and works

Interactive charting Account facilities Order panel Taking delivery How your gold is stored and protected Charges

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Who we are History and resources How to get started Further information

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+44(0)20 8600 0130

Who we are, what we do

BullionVault is where gold investors come to buy gold for storage in a professional bullion vault. The process is secure yet straightforward, and prices are competitive. Heres how it works:

All BullionVault users own guaranteed professional grade gold bullion, in standard gold bar form.

It is stored by Via Mat in a professionally recognised bullion storage facility in Switzerland, the UK or the USA.

Users are able to buy and sell directly with other BullionVault users, via BullionVaults order board. The gold does not move. Only the ownership changes. Anyone can participate. Private individuals can use the service to buy, own, store, and later sell, professional grade bullion all at compelling prices usually available only in the professional bullion markets.

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+44(0)20 8600 0130

Safer, easier, better value

Your gold is kept in London, New York or Zurich, in specialist bullion market approved vaults operated by Via Mat You pay low charges which include insurance and you do not pay extra for fabrication and delivery. You own your gold outright. Your gold is not held as a liability in a gold account and there is no intermediating trust. The gold you buy is your personal tangible property, stored economically in one of the safest places on Earth. You set the whole arrangement up in an hour or two, without any of the timeconsuming procedures and hidden costs you may have experienced in trying to acquire gold.

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The basics

Home page

Guaranteed gold bar quality

The gold you buy on BullionVault is of permanently guaranteed quality because it has always stayed within the recognised storage facilities of the bullion market. It was originally assayed* at a recognised bullion market gold refiner and at the established standard of purity for bullion (>99.5%). It was acquired from and delivered by formally recognised bullion market participants, and it stays in a formally recognised bullion vault. Because of strict adherence to market procedures for handling bullion the bars retain their status as Good Delivery. This means that professional market buyers, who pay the best prices, will accept them, which they will not ordinarily do for bars with a private custody history. So although owned by private customers BullionVault bars retain their full resale value, and this simple solution eliminates one of the significant costs of private gold ownership.

*Assaying is the formal process which establishes the weight and fineness of a bar of gold.

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The public order board

BullionVault buys bars direct from the professional bullion markets. Once we receive confirmation from Via Mat that gold bars are in the vault we multiply the assayed gross bar weight by its measured purity, and add the resulting pure gold weight to our inventory. We then distribute outright ownership of the gold to customers - by quoting live trading prices on our public order board for whole gram multiples of 100% pure [fine] gold.

Public order board

Order board benefits

The order board is directly accessible to you and all other customers, as well as BullionVault itself. It is here that you bid for and offer gold in open and fair competition. This is enormously powerful for you: If other customers are ready to sell, at a price a bit cheaper for you than BullionVaults own price then youll automatically buy direct from them. If no-one is prepared to sell at your preferred price when you want to buy you can encourage them, by bidding up and closing the gap between market bid and offer prices. You can make the gap or spread compellingly narrow. If, when you choose to sell, you offer your gold for a fraction less than

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the best available buying price, then youll become the cheapest source of gold for the next buyer. They will buy directly from you, cutting out the middleman and gaining you extra money for your gold. You dont have to worry about quality if you buy direct from another individual. Their gold has never been removed from the Via Mat vault. It is still the same guaranteed quality gold, and BullionVault still warrants its integrity. You can even offer to buy and sell at the same time on the order board effectively operating like a small scale professional bullion trader, but without the overheads.

Use your preferred currency

BullionVault operates a multi-currency system. You can simultaneously maintain balances in US Dollars, Euros and Pounds Sterling, and you can seek opportunities to trade gold using whichever currency is most advantageous to you at the time.

Choice of vault locations

BullionVault has vaults in three locations. You choose the location you want to own gold in.

New York, London or Zurich

Our three locations are widely thought to be among the most robust defenders of private property rights in the world, both for their own citizens and notably with Switzerland for foreigners. There is no settlement or delivery risk. You buy gold which is already in your chosen vault, using money which you have already paid in. Settlement occurs instantaneously at the point of trade.

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How BullionVault looks and works

You have already seen the front page and the order board. These are two of the publicly accessible screens you can visit right now, without registering or logging in, at www.BullionVault.com. There are several other screens you can also see, still without registering or logging in.

Interactive charting
You have open access to free, real-time, gold price charting.

Real-time gold price charting

You can freely use this utility to continually monitor the price of gold on your windows desktop.

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You have open access to the customer property reconciliation, which we post online daily.

BullionVault customer property reconciliation

This is a part of the system unique in the safe custody world which you can use to ensure that BullionVault keeps accurate, concise and up-todate records of ownership of gold and money across all customers. It lists everyones holdings against their chosen nicknames. You can use it to see that your holdings of both gold and cash form a part of the overall totals, which themselves match exactly to the daily gross statements that we receive from our bank and from Via Mat.

Dealing and Account facilities when you log in

Registration is very straightforward. Once youve registered and then logged in you see the private screens, which you will use to control your bullion holdings and transactions.

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Your account screen shows your gold and cash balances, and values your holdings:

Account balances in gold and currency, and a valuation

Order panel
When you are logged in the order panel appears on the right of your screen. You can use it to buy and sell gold and prices limited by you, and to cancel your unexecuted limit orders.

Order panel

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You can view the full history of your transactions:

Your account history

And examine your statement:

Your online account statement

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Taking delivery
Only when you take delivery of gold does your gold holding isolate you from the risks of the global financial system. At BullionVault you take immediate delivery of gold at the point of trade. At that instant your gold becomes your outright property. You are not exposed to any credit risk. But you do not take personal custody, and this is certainly the best course. When you take bullion away from professional market vaults the bars lose resale value because professional buyers become wary of their integrity. Outside the recognised bullion market infrastructure you cannot take personal custody of a bar or pass it on to a new owner with both parties enjoying absolute confidence that it has not been tampered with. Although it is uncommon some bullion bars in private hands get drilled out. With BullionVault you are guaranteed that this has not happened. The most common spot market delivery unit of gold bullion is at 400 troy ounces inconveniently large. At a $600 per ounce price one unit costs $240,000. Smaller delivery units cost a fabrication premium and further reduce resale value. Minimum costs on gold shipments make them uneconomic below about $500,000. Privately held gold is substantially more expensive to insure than vault held gold. Contrary to much popular belief it is rarely the case that privately hoarded gold can be used effectively at its full bullion market value in times of crisis. More effective by far is to sell foreign held gold and re-patriate the proceeds as they become needed. By storing within the BullionVault service these problems are avoided, and the disadvantages of professional vaulting namely inaccessibility to private customers and high minimum costs are avoided too.

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How your gold is stored and protected

No BullionVault staff have physical access to your gold. It is permanently stored in a segregated, named BullionVault (Clients) compartment in a vault run by Via Mat. Via Mat is a leading provider of precious metal vault services and secure transportation around the world. It maintains formally recognised bullion storage facilities at each of the BullionVault locations, in London, New York and Zurich. Via Mats daily statement is reconciled to BullionVault customer holdings every evening and the reconciliation is immediately published on the BullionVault site. You can at any time view it to prove that your personal holding is securely stored in your chosen vault. Your bullion is insured and the cost is included in your custody charge. Your account has its own Burglar Alarm which sends text messages to your cellphone when there is any account access. In ordinary circumstances your money can only exit to your original funding bank account. This is a failsafe characteristic which provides you with considerably greater security than is possible from your bank. After all, unlike your bank, you dont expect us to be able to make payments on your behalf to millions of different places in the commercial world. So we can disconnect them - all of them except your own bank account - and we are much more secure for you because of it.

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What are the charges?

You pay two charges for using the service. You pay a commission on a reducing sliding scale, which starts at 0.8% and falls to 0.02%. On a $10,000 trade thats from $80 for a one-off trade down to just $2 for a regular trader. The more you trade the less you pay, and the system remembers how much you have traded in each year starting from the day you first register. For both sales and purchases the rates diminish on the following scale:

There is no minimum commission charge. If you choose to buy your gold a single gram at a time you can. At the 0.02% rate youll be paying a 1 cent commission on trades up to $50 (about 3 grams). You also pay a custody charge. The custody charge is calculated at a rate of 0.12% per annum. It is charged at the rate of 0.01% per month and subject to a $4 per month minimum. So your $40,000 holding of gold costs just $48 a year in custody charges and this includes the cost of insurance. 0.12% is only slightly more than the wholesale storage rate and substantially below most comparable bullion storage services. After 8 years at this rate you will still have paid less than 1% overall.

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Who we are
BullionVault is owned and operated by Galmarley Ltd, a company registered in Great Britain (No. 4943684). You can see a list of shareholders at Companies House on: www.companieshouse.gov.uk We have offices in West London (UK) and we welcome callers by appointment. Our contact details are at the end of this brochure. Our services are delivered by our own computer machinery hosted in separate locations in Britain and USA, which we connect to and manage from our London offices. Galmarley is involved exclusively in gold and gold related information technology. It owns www.BullionVault.com and also www.galmarley.com The galmarley site is a free educational resource for researchers seeking information on golds monetary history, its modern role, and how it is traded around the world. It has grown to become one of the most visited and studied gold resources on the Internet. Feedback from Galmarleys many tens of thousands of visitors inspired the development of the BullionVault service.

People
BullionVault achieves its significant cost savings for you through automation, which enables Galmarley to operate with a small team headed by Paul Tustain (CEO), Alex Edwards, and Kris Jenkins. All three are very experienced computer professionals with backgrounds in banking and accounting systems, internet and telecommunications networks, operating systems and security. Between them they own 63% of the fully diluted equity of Galmarley. There is a biography of each on the BullionVault website under About Us. Naturally we regard ourselves as both trustworthy and capable. But we well understand that many people considering buying gold are justifiably ultra-cautious. This is why we have made BullionVault records open and accessible for your audit; so that all our visitors can see at any time that we are running our business honestly, efficiently and accurately.

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History and capital

BullionVault started as an idea back in 2002. At that time it could take 10 weeks for private individuals to organise a safe and fair way to buy and store gold. There were many barriers to private participation in the gold market. After 3 years of planning and development the BullionVault service was launched in March 2005. The BullionVault way of owning gold has proven very popular. Financial performance has quickly exceeded targets, with the business trading profitably in its first full year. By April 2007 more than 35m [~$70m] of customers gold was securely stored through BullionVault. The company has expanded its capital base quickly and has significant cash resources. Net shareholder funds now exceed 3m [~$6m] all of which is invested in immediately available gold and currency. This makes for an exceptionally strong and clean balance sheet. These available cash resources mean the company could operate for more than 4 years without revenues - and still be solvent. For a young and already profitable business, with strong revenue growth, this is an exceptionally solid financial foundation, and reflects the determination of the founders to provide a haven from an increasingly risky financial world.

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How to get started

To buy and own gold through BullionVault you need to open an account via the BullionVault site at www.BullionVault.com. If you visit the site and press the Help button you will see the link to our Getting Started guide. This gives you all the details of what you need to do. The process will take 15 to 30 minutes of your time, after which you will have a BullionVault account, with a free gram of gold - stored in Zurich - as a present from us.

Further information
Many Frequently Asked Questions are answered on our extensive electronic Frequently Asked Questions (FAQs). To view the FAQs go to www.BullionVault.com and press the FAQs button. For further questions and enquiries contact: Email: info@BullionVault.com Telephone: +44 (0)20 8600 0130 In writing: BullionVault, Brook House (4th Floor), 229 Shepherds Bush Road, London, W6 7AN, UK.

www.BullionVault.com
BullionVault is a division of Galmarley Ltd, registered in UK No. 4943684.

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+44(0)208 6000 130