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I have not tested the delivery feature. But they explain it here:
http://support.vaultoro.com/knowledgebase/topics/70060-physical-gold-delivery

Hey, just wanted to say thank you. I used this service today to protect the deflation of my bitcoin holding. Crazy market haha

But you do not need gold from Vaultoro to keep 80% offline. You could obtain physical gold from any source. If it is illegal in your country, you could open a box at http://www.thesafehouse.sg/ as an example.