Allocated Gold Definition
Allocated Gold is a term used in the gold investment world that refers to gold stored in a vault or depositary on behalf of an owner. The gold is “allocated” in the sense that it is physically segregated from other metals in the vault and is specifically designated as belonging to the owner.
Allocated Gold Key Points
- Allocated Gold is physically segregated and directly owned by the investor.
- It’s often stored in a vault or depositary separate from other investors’ gold.
- The investor has direct ownership rights over the gold.
- Unlike unallocated gold, allocated gold is not subject to the risk of bank insolvency.
What is Allocated Gold?
Allocated Gold is gold that you, as an investor, have purchased and directly own. This means the gold is a tangible asset physically separated from other investors’ assets and specifically marked as yours. It’s often stored in a vault or depositary, and carries unique identifying information such as bar numbers.
Why Choose Allocated Gold?
Choosing to invest in Allocated Gold is a way to secure direct ownership rights over the gold. Since the gold is directly owned, it is not on the balance sheet of the bank or vault operator and thus never at risk in the event of a bank failure or insolvency. Furthermore, with allocated gold, you have the option to take physical delivery of the gold if and when you choose to do so.
Who Uses Allocated Gold?
Allocated Gold is typically used by investors who are looking for long term security, privacy and direct ownership of physical gold as an investment. It is also popular among those who want the peace of mind knowing their investment is protected from the risk of a financial institution’s insolvency.
How Does Allocated Gold Work?
When you purchase Allocated Gold, you have direct ownership of specific bars, with each bar having its own identifying number and details. These bars are stored separately in the vault to ensure they are not confused with other gold bars. This allows for increased security and reassurance for the investor, knowing that the specific bars they own are safe and secured.
When Can You Access Allocated Gold?
You can typically access your Allocated Gold whenever you want. If you decide to take physical delivery of your gold, arrangements will need to be made with the storage provider. However, the gold remains yours and you have the freedom to do with it as you wish.
Where Is Allocated Gold Stored?
Allocated Gold is typically stored in a secure vault or depositary. These storage facilities are typically highly secure, and often insured, providing additional protection for your investment. The exact location of the storage facility will depend on the provider with whom you choose to store your Allocated Gold.
