Allocated Storage is a bullion custody arrangement in which specific physical gold or silver is assigned to an individual client and supported by ownership records. The investor is not simply owed a quantity of metal: their holding is identified within the custodian’s records and held on their behalf.
In simple terms, Allocated Storage connects named bullion to a named owner. This guide explains how allocation works, how it differs from segregated, commingled and unallocated storage, the records investors should expect, the benefits and trade-offs, and the checks to make before choosing a UK bullion storage provider.
Allocated Storage: Jump To A Section
Allocated Storage: The Quick Answer
Allocated Storage means identifiable physical bullion is assigned to a client and connected to that client through inventory, weight-list, statement or legal-title records. Allocation describes ownership and identification; it does not automatically mean the bullion is physically separated from other clients' holdings.
- Ownership: specific bars, coins or recorded holdings are assigned to the client.
- Identification: records can show product, quantity, refiner, weight, purity, packaging reference and bar serial number where applicable.
- Custody: the bullion is held under a professional storage agreement rather than remaining part of general dealer stock.
- Reconciliation: statements, stock controls and audits should connect account records to physical holdings.
- Exit: the agreement should explain how sale, transfer and withdrawal instructions are handled and charged.
What Is Allocated Storage?
The defining feature of Allocated Storage is the assignment of physical bullion to the client. Depending on the products held, an inventory may record the metal type, product, quantity, refiner, weight, purity, packaging reference and bar serial number.
Large gold bars are often individually numbered, making them straightforward to identify on a weight list. Gold coins may instead be documented by coin type, year, quantity, sealed packaging or container reference because individual bullion coins do not normally carry unique serial numbers.
Retail records vary, so investors should examine the custody agreement and inventory rather than relying on the label alone.
| Holding Type | Typical Record | Useful Identifiers | Investor Check |
|---|---|---|---|
| Large Gold Bar | Weight list or inventory | Unique number, gross weight, fineness and fine weight | Confirm the bar listed is assigned to your account |
| Gold Coins | Inventory or statement | Coin type, year, quantity, packaging or container reference | Confirm how non-serialised coins are recorded |
| Silver Bars | Inventory or weight list | Refiner, weight, purity, serial number where applicable | Confirm storage and handling details for bulkier holdings |
| Mixed Holdings | Account statement and custody records | Product-level quantities and references | Check that each product is clearly attributable to you |
How Does Allocated Bullion Storage Work?
Procedures vary between dealers, custodians and vault operators, but Allocated Storage normally follows a documented sequence. The investor purchases physical bars or coins, specific bullion is assigned to the client’s account, and the provider creates an inventory, statement, weight list or legal-title record connecting the metal to that client.
The bullion is then placed into professional custody under the storage agreement. Account records and physical holdings should be reconciled through statements, stock controls and audits. When holdings are sold, transferred or withdrawn, the inventory should be updated.
Investors should ask whether withdrawal returns the same identified items, the same sealed package or equivalent bullion of the same specification.
Allocated Storage Process: From Purchase To Instruction
Purchase The Bullion
Select physical bars or coins, agree the price and complete payment and identity checks.
Allocate The Holding
Specific bullion is assigned to the client's account rather than remaining part of the provider's general stock.
Record The Ownership
The provider creates an inventory, weight list, statement or legal-title record connecting the identified metal to the client.
Place The Bullion In Custody
The allocated metal is placed into professional vaulting under the terms of the storage agreement.
Reconcile Records And Holdings
Statements, stock controls and audits should connect the client's records with the physical bullion held.
Issue A Sale, Transfer Or Withdrawal Instruction
The client can request an exit or movement of the holding subject to the agreed procedures, notice periods and charges.
How Are Allocated Holdings Recorded?
Allocation is only as useful as the records supporting it. For a large bar, a weight list may show a unique bar number, gross weight, fineness and fine weight. Coins may be recorded by product, year, quantity, sealed packaging or container reference.
Investors should ask what document proves the assignment, how frequently statements are issued, how records are updated after trades or withdrawals and whether the custody chain can reconcile the account to physical holdings.
| Record Or Control | What It Can Show | Why It Matters |
|---|---|---|
| Inventory | Metal type, product, quantity, packaging and reference details | Shows what has been assigned to the client |
| Weight List | Bar number, gross weight, fineness and fine weight | Supports identification of individually numbered bars |
| Statement | Account-level holdings and transaction changes | Helps the client reconcile purchases, sales and withdrawals |
| Legal-Title Document | The client's rights to the identified bullion | Clarifies ownership rather than a general claim to metal |
| Audit And Reconciliation | Checks between custody records and physical holdings | Tests whether records and metal remain aligned |
Allocated Storage Vs Segregated, Commingled And Unallocated Storage
Allocation concerns ownership and identification. Segregation concerns physical separation. Commingled metal can still be allocated if each client’s ownership is recorded, while unallocated metal generally represents a contractual entitlement rather than title to identified bullion.
A service can therefore be allocated without being segregated, or both allocated and segregated. Providers do not always use these words consistently, so the custody agreement, title documents and inventory records should take priority over marketing language.
| Storage Term | What It Describes | Typical Arrangement | Main Question |
|---|---|---|---|
| Allocated Storage | Ownership and identification | Specific bars, coins or recorded holdings are assigned to the client | Which documents connect identifiable bullion to me? |
| Segregated Storage | Physical separation | The client's bullion is held in a distinct box, compartment or sealed container | Are my holdings kept apart from those of other clients? |
| Commingled Storage | Shared physical storage | Different clients' bullion occupies the same area but may be separately recorded | Is my ownership still clearly allocated and auditable? |
| Unallocated Storage | A contractual claim to metal | The customer is owed a quantity of metal without specific items being assigned | Do I own bullion or have a claim against the provider? |
For a closer examination of counterparty and ownership structures, read our allocated vs unallocated gold guide and review our bullion storage service.
Storage terms, insurance and access procedures should be reviewed in the written service documents before proceeding.
Benefits And Trade-Offs Of Allocated Bullion Storage
The principal benefit of Allocated Storage is clarity. A client can identify what is held for them and which records support ownership. Properly structured allocation may also separate client-owned metal from the provider’s assets and liabilities, reducing counterparty exposure compared with holding only a general claim to metal.
Protection still depends on the agreement, jurisdiction, custody chain and records. Allocation can cost more than an unallocated account because physical bullion must be recorded, stored, insured and administered. Selling or withdrawing specific products may also take longer.
Allocated Storage: Main Benefits And Trade-Offs
Identifiable BullionOwnership RecordsProfessional CustodyInsurance CostsAdministrationWithdrawal Procedures
Charges can vary according to holding value, metal type, vault location and handling needs. Silver bars can occupy substantially more space than gold of the same value, which may influence storage costs.
Can Pension Gold Use Allocated Storage?
Allocated Storage can cover physical gold investments, silver holdings and qualifying pension gold. Where gold is held through a suitable SIPP or SSAS, the records and custody requirements should suit both the products and the pension structure. Gold Bullion Partners’ Pension Gold service uses identified investment-grade bars with allocated and segregated vaulting.
| Area | How It Applies | What To Confirm |
|---|---|---|
| Eligibility | The pension arrangement must permit qualifying physical gold | Check the pension provider and applicable rules |
| Bullion | Identified investment-grade bars are used for the pension storage service | Confirm the eligible bar specification |
| Structure | The holding is arranged through a suitable SIPP or SSAS | Confirm the administrator and provider requirements |
| Storage | Allocated and segregated vaulting is used for qualifying pension gold | Confirm ownership, inventory and withdrawal terms |
| Location | Storage is coordinated at Brink's facilities in London or Zurich | Confirm the selected vaulting location and service terms |
See our Pension Gold service for more information on eligible bullion and professional storage arrangements within suitable pension structures.
What Allocated Storage Does Not Guarantee
Allocated Storage does not automatically mean that a client’s bullion is held in a separate box. It does not, by itself, guarantee adequate insurance, independent auditing, immediate access, delivery on demand or protection if a dealer, custodian or vault operator stops trading.
Those safeguards must be established through the agreement and supporting documents. Confirm who holds legal title, whether client metal is kept outside the dealer’s balance sheet, who controls the vault account, which risks are insured and how ownership would be recognised if any business in the custody chain became insolvent.
Explore our bullion storage service, our guide to allocated vs unallocated gold and our Pension Gold service for related ownership and custody information.
How To Compare UK Allocated Storage Providers
| Check | What To Verify | Why It Matters |
|---|---|---|
| Legal Ownership | Who holds title and whether the metal is treated as a client asset | Clarifies the client's legal position |
| Identification | How bars, coins, packages and container references are recorded | Shows how bullion is allocated to the account |
| Segregation | Whether the bullion is also physically separate and how that is defined | Prevents confusion between allocation and segregation |
| Custody | Vault operator, location, jurisdiction and subcontractors | Maps the custody chain |
| Audit And Insurance | Verifier, frequency, insured risks, limits and exclusions | Tests the supporting safeguards |
| Access And Exit | Sale, transfer, inspection and delivery procedures, notice periods and charges | Shows how the holding can be moved or realised |
| Provider Failure | The process if a dealer, custodian or vault operator ceases trading | Clarifies contingency arrangements |
Before selecting a UK Allocated Storage provider, request the custody agreement, sample ownership documents and a complete written fee schedule. The service label should never substitute for the underlying documents.
Ownership Records, Audit, Insurance And Custody
Allocation should make it clear who owns the bullion and how the holdings are identified, but the supporting safeguards still need separate review. Investors should confirm who controls the vault account, how inventory is reconciled, who performs independent checks, what the insurance covers and how title would be recognised if any business in the custody chain became insolvent.
For larger holdings, review our bullion storage information and confirm the written ownership and insurance terms before using any storage provider.
How Do Sale, Transfer And Withdrawal Work?
Allocated bullion can usually be sold, transferred or withdrawn under the procedures in the custody agreement, but allocation alone does not guarantee immediate delivery. Investors should check identity requirements, notice periods, minimum withdrawals, packaging, insured transport and all release or delivery charges.
Ask whether a withdrawal returns the same identified items, the same sealed package or equivalent bullion of the same specification, and how the inventory is updated after the instruction is completed.
| Question | Why It Matters |
|---|---|
| How Is A Sale Instructed? | Defines how allocated bullion is released or sold from custody. |
| Can The Holding Be Transferred To Another Custodian? | Shows whether ownership can move without a cash sale. |
| Will I Receive The Same Identified Items? | Clarifies whether specific bars, packages or equivalent bullion are returned. |
| What Notice Period Applies? | Shows how quickly access can be arranged. |
| What Withdrawal And Delivery Charges Apply? | Makes the full exit cost visible. |
| How Is The Inventory Updated? | Confirms that ownership records stay accurate after movement or disposal. |
Regulation, Protection And Provider Failure
Investors should check the regulatory status of the specific service. Physical gold and silver investments are not regulated by the Financial Conduct Authority, so Financial Ombudsman Service and Financial Services Compensation Scheme protections do not apply.
That makes the ownership structure and custody documents particularly important. Ask how client assets would be identified if the dealer, custodian or vault operator ceased trading, and whether the agreement gives a clear route to sale, transfer or withdrawal. Independent advice may be appropriate where suitability, pensions or tax treatment is uncertain.
Allocated Storage Checklist
- Request the custody agreement and sample ownership documents.
- Confirm exactly how bars, coins, packages or containers are identified.
- Check whether the bullion is also segregated and how that term is defined.
- Verify the vault operator, location, jurisdiction and any subcontractors.
- Review audit arrangements, insurance risks, limits and exclusions.
- Obtain the complete written fee schedule, including withdrawal costs.
- Understand what happens if any provider in the custody chain stops trading.
How Gold Bullion Partners Provides Allocated And Segregated Storage
Gold Bullion Partners states that its service is fully allocated and segregated. Client metals are legally registered to their owner and held in a distinct box within insured professional vaults. The service also includes legal-title documentation, independent audits by Deloitte LLP, comprehensive insurance and the ability to request shipment.
These are features of the Gold Bullion Partners service, not automatic consequences of every arrangement using the same label. Review the documents, inventory, insurance, charges and exit process before proceeding, and see our bullion storage service for current details.
How Gold Bullion Partners Supports Allocated Storage
Gold Bullion Partners helps clients purchase physical gold or silver, document allocation, arrange professional custody and later sell, transfer or request delivery. Because the service is both allocated and segregated, client ownership records are combined with physical separation in a distinct storage box.
Clients considering withdrawal can also review our insured bullion delivery service.
Considering Allocated Storage?
Discuss ownership records, vaulting, segregation, independent auditing, insurance, charges and delivery arrangements with the Gold Bullion Partners team.
Discuss Allocated StorageAllocated Storage FAQs
Is Allocated Storage The Same As Segregated Storage?
No. Allocated Storage concerns ownership and identification, while segregated storage concerns physical separation. A provider may offer either feature or combine both, so the agreement should define the arrangement clearly.
Do I Own The Exact Gold In Allocated Storage?
The agreement and inventory should explain what has been assigned to you. A large bar may be identified by serial number, weight and fineness. Coins may be recorded by product, quantity, packaging or container reference.
Can Bullion In Allocated Storage Be Delivered?
Delivery is often available, but it is not guaranteed by allocation alone. Check identity requirements, notice periods, minimum withdrawals, packaging, insured transport and all release or delivery charges.
How Much Does Allocated Storage Cost?
Fees can depend on the value and volume of the holding, metal type, vault location, insurance, auditing, segregation and withdrawal requirements. Obtain the full fee schedule before opening an account.
Does Allocated Storage Mean My Bullion Is Physically Separate?
No. Allocation concerns ownership and identification, not physical separation. The bullion is only segregated if the custody arrangement also states that it is kept apart from other clients' holdings.
What Does Allocated Storage Not Guarantee?
Allocation alone does not guarantee segregation, adequate insurance, independent auditing, immediate access, delivery on demand or protection if a provider fails. Those safeguards must be established in the supporting documents.
Is Allocated Storage Right For Every Bullion Investor?
Not necessarily. It may suit investors who want identifiable physical gold or silver supported by ownership records and professional custody. The agreement, inventory, audits, insurance, total charges and withdrawal rights should all be considered.
Is Allocated Storage Right For Your Bullion?
Allocated Storage may suit investors who want identifiable physical gold or silver supported by clear ownership records and professional custody. Base the decision on the agreement, legal title, inventory, audits, insurance, total charges and withdrawal rights rather than the label alone.
Gold Bullion Partners can explain how its allocated and segregated vaulting arrangement works for physical bullion.
Allocated Storage: Key Facts
Summary: Allocated Storage assigns identifiable physical bullion to a client and supports that assignment with inventory, statement, weight-list or legal-title records. Allocation describes ownership and identification; segregation describes physical separation.
- Primary Intent: Understand how Allocated Storage works for physical gold and silver.
- Key Distinction: Allocated bullion can be commingled or segregated, so the agreement should state both ownership and physical-custody arrangements.
- Core Checks: Review legal title, identification records, custody chain, audit, insurance, fees, provider-failure procedures and withdrawal rights.
