Allocated Gold
Also: Allocated Gold, Segregated Gold Storage
Allocated gold refers to physical gold that is individually assigned to an owner, stored separately, and does not appear on the balance sheet of the custodian.
Allocated gold is the safest form of holding physical gold through a custodian. Every bar or coin is individually assigned to its owner by serial number, weight, and fineness – the custodian has no right of disposal over it. The current gold price can be used at any time as the basis for valuation.
Allocated vs. Unallocated – the Key Difference
The counterpart is unallocated gold: in that case, the buyer holds merely a claim against the bank or dealer, without any specific bars being reserved for them. The unallocated account appears in the bank's balance sheet as a liability – in the event of insolvency, the investor joins the pool of creditors.
| Feature | Allocated | Unallocated |
|---|---|---|
| Right of ownership | Direct ownership in rem | Contractual claim |
| Insolvency protection | Yes – right of separation | No – unsecured creditor |
| Storage fees | Yes (typically 0.1–0.5 % p.a.) | Often none (bank bears costs) |
| Liquidity | Somewhat lower | Very high |
| Typical providers | Central banks, large banks, bonded warehouses | Commercial banks, gold savings accounts |
Legal and Regulatory Framework
With allocated gold, the investor acquires co-ownership or sole ownership of individual gold holdings. In Germany, this is governed by §§ 929 ff. BGB (transfer of movable property). In the event of insolvency of the custodian, the owner has a right of separation under § 47 InsO – the gold does not form part of the insolvency estate.
Central banks, including the Deutsche Bundesbank, store their gold reserves exclusively in allocated form. The Bundesbank holds roughly half of its holdings in Frankfurt; the remainder is stored at the Federal Reserve Bank of New York and the Bank of England in London. Storage at the Banque de France was completed in full by 2017.
Typical Custody Forms
- Safe at a precious metals dealer or refinery – often with a certificate per bar.
- Bank deposit (allocated metal account) – less common than the unallocated variant, usually from larger amounts.
- Bonded warehouse – tax-advantageous for international storage (e.g. Switzerland, Singapore); VAT only becomes due upon import.
- Home safe / self-storage – no counterparty risk, but insurance and theft risk.
Costs and Valuation
The annual storage fee ranges from 0.1 % to 0.5 % of the gold value depending on the provider and volume. An insurance premium is often added on top. For the ongoing valuation of your holdings, use the Gold Calculator, which combines weight and the current spot price.
Holdings value = Fine weight (oz) × current gold price (EUR/oz)
Note: Tax aspects – such as the speculative holding period under § 23 EStG or any gains from a sale – vary by individual. This is not tax or investment advice.
Allocated Gold in a Portfolio Context
As a safe-haven asset, allocated gold offers maximum protection against counterparty risks. It is particularly well suited for long-term wealth preservation and inflation protection. Those wishing to buy regularly can simulate the cost-average effect using the Savings Plan Calculator.
In Brief
Allocated gold stands for full, insolvency-protected ownership in rem of physically existing holdings – it is the counterpart to paper gold and unallocated positions, and is regarded as the safest form of professionally custodied gold ownership outside one's own four walls.