Last updated: October 22, 2026
Allocated gold identifies particular metal held for an owner; unallocated gold represents an account claim for a quantity of metal. That distinction matters when you want to withdraw, sell or establish what you own. It does not, by itself, answer every question about insurance, access or what happens if a provider fails.
Start with the agreement behind the product. A website label such as “allocated,” “pooled” or “fully backed” is a starting point for questions, not a substitute for written ownership and custody terms.
What allocated and unallocated mean
In the London wholesale market, the LBMA describes allocated accounts as ownership of identified bars. The accompanying bar list records details such as serial number, weight and fineness. Unallocated accounts instead give the customer a general entitlement to a quantity of metal, without ownership of specific bars.
The LBMA’s precious-metal accounts guide explains that an unallocated balance creates credit exposure to the account institution. Its descriptions concern wholesale arrangements; do not assume a retail product has the same contract, withdrawal process or legal structure.
| Question | Allocated offer | Unallocated offer |
|---|---|---|
| What is recorded? | Ask for the specific holdings and the record connecting them to your account. | Ask which entity owes the metal balance and what obligation it has to you. |
| What can you withdraw? | Confirm whether the identified items can be delivered and on what terms. | Confirm whether physical conversion is available, with which minimums and charges. |
| What will it cost? | Obtain the storage, insurance and exit charges. | Obtain the account, conversion and exit charges. |
Ask separately about ownership, separation and insurance
Do not use “allocated” and “segregated” interchangeably when comparing offers. Ask the provider to define both terms in its own agreement. Establish whether your metal is individually identified, physically separated from other customers’ holdings, or represented by an interest in a larger holding. If the offer uses fractional ownership, request the document explaining that interest.
Insurance is another separate check. The LBMA guide says that, absent a contrary agreement, the owner of allocated metal is responsible for arranging insurance. For a retail offer advertised as insured, ask who is insured, which losses are covered, the limits and exclusions, and who can make a claim.
Allocation should not be presented as a blanket promise of immediate recovery after insolvency. Ask which jurisdiction governs the contract, how client holdings are identified and what process applies if the seller, account operator or vault stops operating. If that answer is material to a large purchase, have the actual agreement reviewed by an independent legal adviser.
If the offer supplies a certificate or receipt, our gold certificate checklist explains how to identify the issuer and check what the document actually entitles you to receive.
Build a document pack before paying
Request these items together so you can check whether the sales description matches the paperwork:
- Account agreement: the legal entity receiving payment, your ownership or claim, and any rights to lend, pledge or substitute metal.
- Holdings record: a sample statement and, where applicable, bar list; ask when records become available after purchase.
- Custody details: the vault operator, storage location and any other company involved in holding the metal.
- Verification process: who reconciles account records with holdings, what independent checks occur and what customers can inspect.
- Exit terms: the procedure and charges for selling, transferring ownership or taking delivery.
An audit summary and an account statement answer different questions. Ask what the audit covered and whether its date and scope match the product you are considering. Keep copies of the documents supplied with your quote.
Compare the whole purchase and exit
The CFTC and FINRA metals checklist recommends obtaining prices and costs in writing and checking a dealer’s current buyback price. Apply that comparison to the same quantity and product, at the same time.
For example, two offers might both show a ten-ounce balance. Before comparing annual charges, establish what those ten ounces represent. Then ask each provider for the total cost of buying, holding for one year and exiting under the same assumptions. Include any minimum withdrawal, fabrication, handling, delivery or account-closing charge. Mark an unanswered charge as unknown, rather than zero.
Ask how long a sale or delivery request normally takes, when its price is fixed and whether the provider can suspend requests. Gold’s market price can move while you hold it; choosing a storage arrangement does not remove that risk.
Choose the next comparison that matches your goal
If you want to compare ways to obtain gold exposure, read our gold ETF versus physical gold guide. For metal inside a retirement account, use our gold IRA custodian checklist to separate account administration from selling and storage. Before acting on an unsolicited offer, review our gold investment scam checks.