Custody basics
Allocated versus unallocated gold
Compare direct title to identified metal with a provider claim, including custody, counterparty, fees, liquidity, and audit questions.
What changed
The custody checklist now asks who owns the metal, where it is held, how it is reconciled, and what happens in insolvency.
Why it matters
Unallocated structures may offer efficiency and liquidity, while allocated custody can reduce some forms of counterparty exposure at a higher cost.
- Read title and bailment language.
- Ask whether bars are specifically identified.
- Review audit and insurance scope.
- Understand withdrawal minimums and fees.
Historical context
Precious-metals markets mix a globally traded raw material, manufactured investment products, and retail distribution. The price of the metal and the price a buyer actually pays can therefore diverge for long periods.
What could change the conclusion
Allocation does not eliminate every risk. Fraud, operational failure, jurisdiction, insurer exclusions, and access constraints still matter.
Reproducible by design
Methodology and limitations
- Base classification on governing documents.
- Separate legal title, physical segregation, and accounting allocation.
- Verify the independent audit’s scope and date.
Educational information only. GoldKnows does not provide individualized investment, tax, legal, appraisal, custody, or trading advice.
Evidence ledger