Allocation of gold accounts

Allocation of gold accounts

Gold savings banks and many gold dealers provide customers with gold accounts, which consist of gold deposits and are similar to currency accounts. When a customer orders a certain number of grams or ounces of gold, the accepting bank will purchase the gold for the customer, and then electronically credit the transaction to the aforementioned account. 

Investors can usually choose unallocated savings accounts or allocated savings options. Only in the case of allocated savings in a specially allocated account, can gold be attributed to the account holder in physical form. For this distribution account, the bank cannot lend the gold, and if the bank goes bankrupt, the bank’s creditors have no interest in the gold. Unallocated account customers are unsecured creditors of savings banks or gold dealers. The gold in the unallocated account, like many other bank deposits, can be loaned out by the bank. 

Generally speaking, regardless of the type of account, the savings bank only accepts transactions over 1,000 ounces. Deposit bank customers are usually institutional investors, private banks that trade on behalf of customers, central banks, and gold market participants who wish to buy or borrow large amounts of gold. 

The fees and transaction costs of allocated and unallocated accounts may vary greatly depending on the scale of investment and the credit value of investors.

The information provided on this website is for general information and educational purposes only, and should not be used or regarded as an offer or recommendation to buy or sell. Please refer to the “Terms and Conditions” .

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