Allocated vs unallocated gold: who really owns the bars?

Two people can each "own" ten ounces of gold in the same vault and be in completely different positions. One owns ten numbered ounces. The other is owed ten ounces. Most of the time you cannot tell the difference. It only matters on the day something goes wrong, which is exactly when it matters most.

What do allocated and unallocated actually mean?

The London Bullion Market Association (LBMA), which sets standards for the wholesale gold market, describes the two types of account like this:

• Allocated: the account "is backed by a specific bar". The holder gets a weight list showing each bar's unique number, weight and fineness (purity). According to the LBMA, the investor "does not have a credit exposure to the institution where the account is maintained". An allocated account cannot be overdrawn: gold only moves when real bars move.
• Unallocated: the holder has "a contractual claim against the clearer" (the bank or dealer holding the account). The LBMA says the owner "has credit exposure to the institution where the account is held". There is no list of your bars, because there are no bars that are yours, just a balance.

Put simply: allocated is like leaving your own locked box at a storage company. Unallocated is more like a bank deposit measured in ounces instead of pounds or dollars. The bank owes you the money; it does not keep your particular notes in a drawer.

You will also see segregated, which usually means your allocated items are kept physically apart from other customers' as well, and pooled allocated, a halfway house some providers use where customers share title to a set of bars. The Perth Mint says it does not offer pool allocated gold. Always read the provider's own terms rather than relying on the label.

Who legally owns the gold?

With allocated storage, you do. The provider looks after your property for you. Lawyers call this bailment: one person holds goods that belong to another and owes a duty of care. BullionVault, for example, says bullion held through it "is your outright property" and that it acts as your agent with "a formal and legal duty of care".

The clearest real-world example is the Bank of England. It stores gold for central banks and some commercial firms on an allocated basis, where "the customer retains the title to specific gold bars". Its vaults hold around 400,000 bars, yet the Bank says it owns just two of them, both on display in its museum. Because customer gold belongs to customers, it does not appear on the Bank's balance sheet.

With unallocated gold, the provider owns the metal and you own a promise. The provider can usually use the pooled metal in its business, for example to fill other customers' orders or to lend, which is part of why it can offer storage cheaply or free.

What happens if the provider fails?

This is the whole point of the distinction.

• Allocated: your bars are not the company's assets, so its creditors should have no claim on them. The LBMA adds a realistic caveat: in theory an allocated holder could "simply drive to the vault and remove their bars", but in practice it would be "rather more complicated". Expect paperwork and delay, not loss, provided the records are clear.
• Unallocated: you are usually an unsecured creditor: someone who is owed money with no claim on any particular asset. You join the queue behind secured lenders and may get back only part of what you are owed, or nothing.

Has this really happened?

Yes. In Re Goldcorp Exchange Ltd, decided by the Privy Council (then the final court of appeal for New Zealand) on 25 May 1994, a New Zealand bullion dealer had sold customers "non-allocated" gold that it promised to store. When it collapsed, the gold in its vault was far short of what customers were owed and had never been set aside for anyone. The court held that those customers had no ownership rights in the gold. They were unsecured creditors, and the company's bank, which held a charge over its assets, came first.

Can a guarantee change the picture?

It can. The Perth Mint is owned by the Government of Western Australia, and it says its liabilities are guaranteed by that government under the Gold Corporation Act 1987. The guarantee covers "precious metals owed to investors, whether it is allocated or unallocated". That makes Perth Mint unallocated gold a claim backed by a state government, which is a very different risk from an unallocated balance at a small private dealer. Few providers offer anything similar, so check before you assume.

How do allocated and unallocated compare side by side?

How much does each type cost? Real fees

We checked each provider's published fee page on 12 October 2026.

Sources: The Perth Mint fees page, BullionVault tariff, The Royal Mint Vault page, all checked 12 October 2026. Perth Mint fees are charged in your account currency; fabrication fees are listed in dollars (A$ for Australian residents).

Worked example: ten ounces held for five years

At the 11 October 2026 spot price of A$6,012.71, ten ounces of gold were worth A$60,127. Held at The Perth Mint as unallocated metal, the yearly storage fee is A$0. Held as allocated metal at 1%, it is about A$601 a year, or roughly A$3,006 over five years if the price stays flat. Converting to ten allocated 1oz bars would add $1,450 in fabrication fees (one 10oz bar is listed at $980).

In pounds, at the 10 October 2026 spot of £3,171.03, ten ounces were worth £31,710. In The Royal Mint's Vault as a coin tube at 1% plus 20% VAT, that is about £381 a year. At BullionVault's 0.12% it would be about £38 a year, close to its US$4 a month minimum. Those prices come from the GoldVetted price check; your own figures will move with the gold price. The storage cost calculator works out any amount.

BullionVault published the lowest allocated storage fee we found, and lists every bar in its vaults each business day. See BullionVault's fees or read our BullionVault review first.

How do audits work, and what should you look for?

An audit is an independent check that the gold a provider says it holds is actually there and matches its records. Practice varies widely:

• BullionVault publishes the bar lists sent by its independent vault operators (Loomis International, Malca-Amit and Brink's) every business day, alongside anonymised customer holdings, so anyone can check the totals match. It says it can send an independent assayer (a metal tester) to check bars on 48 hours' notice.
• The Royal Mint says metals in The Vault are "independently audited and fully insured", and sends annual statements. Its page does not name the auditor or the frequency, so ask if this matters to you.
• The Perth Mint relies on its state government guarantee; its fee and storage pages we checked do not describe its audit arrangements.

Good signs: a named, independent vault operator; a named auditor; audits at least once a year with results you can see; and bar lists with serial numbers. A bar of a recognised standard is easier to verify; see our explainer on Good Delivery gold.

How can you check you really own allocated bars?

1. Read the terms, not the advert

   Look for "allocated", "segregated", "bailment" or "title remains with the customer". Be wary of "pooled", "unallocated", "metal account" or "we may lend".

2. Ask for a bar list

   Each bar should have a refiner, serial number, gross weight and fineness, as the LBMA describes for allocated accounts. For coins, expect an itemised holding.

3. Find out who runs the vault

   An independent vault operator, separate from the company selling you the gold, adds a layer of protection.

4. Check audit and insurance

   Who audits, how often, and is insurance cover at least equal to the value held? Ask to see evidence.

5. Know what happens on failure

   Ask in writing: if the company goes into administration, how would I get my bars back, and who pays the costs?

6. Test the exit

   Check withdrawal and delivery fees before you buy. A cheap route in can have an expensive route out.

What mistakes do people make?

• Choosing "free storage" without asking why it is free. Zero-fee storage is very often unallocated.
• Assuming a well-known name means allocated. Large banks and mints offer both types; the account type, not the brand, decides your rights.
• Not keeping records. Keep statements, bar lists and contracts somewhere your family can find them.
• Expecting regulator compensation. In the UK, The Royal Mint warns that the Financial Ombudsman and the Financial Services Compensation Scheme do not apply to its physical bullion storage.
• Mixing up gold funds with stored gold. An exchange-traded product is a different structure again; see physical gold vs gold ETFs.

What does this mean in the US, UK, Canada and Australia?

Before you store, you have to buy. Our country guides compare dealers and premiums: where to buy gold in the US, where to buy gold in the UK, where to buy gold in Canada and where to buy gold in Australia. For the full process from choosing a coin to storing it, read how to buy gold, and for home safes and bank boxes see our gold storage guide.

Which one suits you?

If the reason you hold gold is to own something outside the financial system, allocated storage (or coins at home) fits that aim, and the fee is the price of ownership. If you trade often, hold for short periods and are comfortable with the provider's credit risk, or the provider has a government guarantee, unallocated can cost less. Neither removes the risk that the gold price falls. This guide is general information, not financial advice.

Not financial advice. GoldVetted provides general information to help you compare options. It is not personal financial, tax or legal advice. Gold prices go down as well as up, and you may get back less than you pay. Check tax rules with the official source or a qualified adviser before you act.