 What is Allocated Gold?Welcome to this Website, thanks for visiting. What is allocated gold storage exactly? An allocated account is different from an unallocated holding or most gold ETF offerings, (Gold Exchange-Traded Fund) which are usually the property of the bank and held in a common pool shared with other investors.The benefits of this method of gold investment include little to no storage fees and short term trading convenience, however it offers no proof of physical ownership. Yes using an unallocated storage method an individual is often able to buy and sell gold cheaply and quickly, but the bar, coin or ingot is not linked to their actual name. Instead it is the asset of the bank, financial institution or organisation where it is held and part of their own gold reserves. If there was another event like the Lehman Brothers collapse of September 2008, would the holders of unallocated bullion be able to retrieve their "paper gold" quickly and safely, or would they be left sweating in a queue with a multitude of anxious creditors? Allocated vs Unallocated Gold? The storage fees cost more, however a number of analysts have stated that they believe the security of physical ownership is worth paying extra for. As an example precious metals analyst Jim Rickards has said in an interview that the chain of unallocated paper gold is around 99-100 times that of physical gold. 14 Years - Price Has Been Steadily Rising Widely linked to anti-inflationary policies, this relegated gold to the sidelines during the massive stock boom of the 1980s and 1990s. The decade that began with the year 2000, however, saw the global stock markets shaken twice, once in 2001 and another in 2008 which shook the financial world, and reignited interest in gold. Prices had already started to rise before 2001 and accelerated in the years afterward. Indeed, the rise of gold continued over the next decade and by September of 2011 the price had reached an impressive peak of around £1,157 per troy oz, at the time a nominal high. Fast forward 14 years, and now in May 2025, prices have risen to just above £2,484 per ounce, this is a highly respectable number by any standard considering the price was ranging between £700 and £800 per ounce in 2015. Many experts such as Peter Schiff CEO of Euro Pacific Funds, expect the price to rise higher, recalling bank bailouts in the past for countries such as Cyprus and Greece, and anticipating a future financial crisis potentially influenced by tariffs and trade wars. Gold as an inflation Hedge and Safe Haven? The price action through the years has generated strong demand. Gold, the 79th element on the periodic table, comes in coin or bar form. The desire for bullion in the latter form is strong, not least because gold is most often handled in bars. It is up to the individual investor to decide how much gold to allocate in their portfolios. Gold Dealers and Manufacturers A manufacturer turns raw gold into coins, ingots and finished bars. The commonest type, the London Good Delivery bar, has strict qualifications as to the fineness of its gold content. Manufacturers can also make customised bars for different banks. These bear the name and logo of the bank and the manufacturer. After they are cast and minted, they are sold to international or national dealers. International dealers buy large quantities to sell them to other fabricators and precious metals companies around the world. A national dealer, as the name suggests, will deal exclusively in bars for their national market. Finally, fabricators purchase gold from national or international firms. They make jewellery, rings and industrial products containing gold such as electronics. The golden metal is a fantastic conductor of electricity, in the purest form it does not tarnish, indeed a multitude of electronics manufacturers now use gold as the preferred metal of choice for plating the connectors on circuit boards, further increasing demand for this versatile precious metal. Fabricators are concerned that the stated weight and quantity of every fine gold bar they handle is accurate. The Big Bullion Market Players Well-known international figureheads in this sector include The Royal Mint, Credit Suisse, the COMEX and other big-name banks. Refiners include Pamp Switzerland, Boliden AB in Sweden, the Royal Canadian Mint in Canada, Schöne Edelmetaal in Holland, Tanaka Kikinzoku Kogyo K.K. in Japan, the Perth Mint in Australia and Baird & Co, which is currently the United Kingdom's largest Gold refinery. This is just a sample as there are many more companies. Bullion buyers interested in gold, platinum, copper, rhodium and silver bars and coins must gather the correct information and conduct their own thorough investment research. Retail investors often do not have the funds to act on their interest. For instance, the standard London Good Delivery bar contains 400 ounces of fine gold. As of April 22, 2025, the price of an ounce stood at over $3,344. A full sized delivery bar would thus cost approximately $1,300,000 dollars, well beyond the average retail investor. Smaller bars exist, of course, but the big names in the industry have big money to back them up. Investors large and small have the ability to access allocated gold at reasonable prices from national dealers and allocated exchanges such as Bullionvault (Tel: 020 8600 0130) in London and Chards ( Telephone: 01253 343081) in Blackpool. Newer additions to the field can provide them with bars from multiple manufacturers across the world. What any investor must be wary of is the "mark-up," the amount by which the price is raised to cover shipping, handling and other miscellaneous costs. Multiple factors must be weighed in order to arrive at a preferred dealer. The mark-up, product offerings, return and warranty policies of any dealer are an excellent place to begin making comparisons. Sites such as TrustPilot, and Google Reviews, and Google Store Ratings can also be a good starting point to confirm if a dealer is reputable. Growing Interest in Gold Investing According to the "World Gold Council" demand for gold reached a new high in 2024. With recent stories in newspapers about tariffs, and articles in the not too distant past of bank runs in Cyprus and Greece, public awareness of gold bullion and other precious metals like silver and platinum is growing. Many investors and traders desire to protect themselves from perceived risks to the integrity of their portfolio. Investing and trading in precious metals in the past has sometimes proven effective against inflation and can serve to diversify asset holdings. Bullion investment however can bring price volatility, storage fees have to be considered and also the fact that gold does not offer any interest. If in doubt those interested in buying allocated gold bars and coins should seek the advice of a qualified financial advisor as this Website is for information purposes only. Please read this blog's privacy policy which can be accessed on this site's menu for more details.:) Gold Quotations - Past and PresentHere are a collection of gold quotes gleaned from individuals from the past and the present. We'll start with Peter Schiff who was one of the few voices predicting an economic crisis a year or two before the crash of 2008. We do not always agree with Peter's stance on Bitcoin and other topics, however so far he has been right on the money regarding gold. We will updating this section of the site shortly. "...Gold has intrinsic value..." "...Gold is not just any commodity, it's money..." "...Gold is not going up - Money is losing its value..." "...Gold is not overvalued at $500, and gold will not be overvalued at $1,500 or $2,000..." "...One day we're going to look back at $1,700 with nostalgia. People are going to be shocked at how inexpensive gold was when it could be snapped up for such a bargain price..." - Peter Schiff of Euro Pacific Capital "...Gold is the only money that has never failed in the 5,000 year history of its use by humans..." - Mike Maloney "...If all the gold ever produced on Earth were formed into a single cube its edge would be less than 20 metres - 2 metres shorter than a tennis court..." - Paul Tustain The Gold Price in Ounces and Kilos
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