What is Allocated Gold

What is allocated gold and why it matters 

Have you ever wondered how you can truly own gold without worrying about others using it? That is exactly what allocated gold offers. Allocated gold is physical gold that is specifically set aside and stored in your name. Each bar or coin is uniquely identified—usually with a serial number—so you have direct ownership of that exact piece.

When you invest in allocated gold, each bar or coin is stored in your name, clearly identified with serial numbers, and safely kept in a secure vault. This means no one else can borrow, use, or sell it—giving you full control and peace of mind. Unlike unallocated gold, allocated gold guarantees direct ownership, making it ideal for long-term security, investment diversification, and even financial products like gold loans where your ownership matters most.

Characteristic of allocated gold

Allocated gold has distinct characteristics that set it apart from other forms of gold investments. It represents direct ownership of physical gold, identified by serial numbers, weight, and purity. Stored securely in a vault under the investor’s name, it cannot be used by third parties, offering unparalleled protection. Custodians charge storage and insurance fees to maintain the security of the gold. Investors receive detailed documentation confirming their ownership, ensuring transparency. Unlike unallocated gold, allocated gold is not pooled with other investors’ holdings, providing exclusive rights to the physical asset. These characteristics make it a highly secure and transparent investment.
 

Benefits of owning allocated gold

Owning allocated gold offers several advantages for investors. It ensures direct ownership of physical gold, providing security against counterparty risks. With dedicated storage and insurance, the gold remains safe and traceable, offering peace of mind. Allocated gold acts as a hedge against economic uncertainty and inflation, preserving wealth over time. It provides liquidity, as it can be easily sold or used as collateral for financial products like gold loans. The transparency of ownership, supported by detailed documentation, ensures that investors have full control over their assets. Allocated gold is ideal for long-term investors prioritising security and stability.
 

Allocated gold vs. Unallocated gold: Key differences

Allocated gold and unallocated gold differ significantly in ownership and usage. Allocated gold represents direct ownership of physical gold stored securely under the investor’s name. It is not pooled or used by third parties, offering maximum security. Unallocated gold, on the other hand, represents a claim on the bank’s or custodian’s gold holdings, rather than specific gold bars. It is cheaper to hold as it does not incur storage fees but carries counterparty risks. Unallocated gold can be used by the custodian for lending or trading, while allocated gold ensures complete control and ownership of the physical asset.

Pro tip: Turn your gold into instant support—handle any expense with ease. Check your gold loan eligibility and access funds when you need them most.