Key points
- Allocated: specific, identifiable bars or coins are held for you, usually listed by serial number.
- Unallocated: you have a claim against the custodian for a quantity of gold, not title to particular bars.
- Unallocated is often cheaper and more flexible; allocated reduces your exposure to the custodian itself.
- The storage contract — not the marketing page — decides which one you have. Ask to read it.
The difference in one table
| Question | Allocated | Unallocated |
|---|---|---|
| What you hold | Specific bars or coins, identified (usually by serial number) | A claim for an amount of gold against the custodian |
| If the custodian fails | Your metal should be identifiable as yours — subject to the contract and applicable law | You may rank as a creditor of the custodian for the amount owed |
| Typical fees | Storage fee, often higher | Account or maintenance fee, often lower |
| Flexibility | Moves in whole bars or coins | Any quantity, easy to buy or sell small amounts |
| What to ask for | A bar list with serial numbers and audit reports | The legal terms of the claim and the custodian’s financial standing |
What the LBMA says
In short: in the London wholesale market, an allocated account is backed by a specific bar, while unallocated accounts are the way most metal is settled because they are quick and simple — a quantity of metal is credited as an amount, not a set of bars.
The LBMA also notes that it is not “allocated” or “unallocated” metal that is traded, but metal itself; the terms describe the type of account over which it is held after trading. Balances can generally be switched from one type to the other, and investors pay a storage fee for allocated accounts and a maintenance fee for unallocated ones. Retail providers borrow these words, but the meaning that binds you is the one written in your contract.
Segregated is a third question
Segregated means your metal is physically kept apart from other clients’ metal. Storage can be allocated without being segregated — specific bars recorded in your name on a shared shelf — and providers sometimes use the words loosely. Ask both questions separately: is it allocated to me, and is it segregated?
Which one is right for you?
- Allocated usually suits someone who holds gold to reduce reliance on financial institutions, and who wants the right to take delivery of particular bars.
- Unallocated may suit someone who values low cost and flexibility more than direct ownership, and who has checked the custodian carefully.
- If a product is described only as “backed by gold” or “held in a vault”, find out which of the two it is before buying.
Questions that reveal what you are being offered
- Will I receive a list of the specific bars or coins held for me, with serial numbers?
- Is the metal recorded in my name, and is it segregated from other clients’ metal?
- Who is the custodian, and is it a different company from the dealer?
- Does the custodian lend or lease the metal it holds for clients?
- Who audits the holdings, how often, and can I see the report?
- What happens to my metal, in writing, if the dealer or the custodian stops trading?
Regulators including the CFTC and FINRA have warned about schemes that charged storage fees for metal that never existed. A statement you cannot verify is not proof of ownership. Gold Decision does not guarantee any custodian.
For the full comparison of storage options and costs, see gold storage options.
Sources and verification
- LBMA — A guide to the Loco London precious metals market: precious metal accounts
- FINRA — 10 things to ask before buying physical gold, silver or other metals
- CFTC — Precious metals fraud advisory
The LBMA describes accounts in the wholesale London market; retail storage contracts use the same words but set their own terms. Sources checked 15 November 2026.