The words a depository uses describe your legal position if the institution ever fails. They are worth reading carefully.
What does "allocated" storage mean?
Allocated storage means specific bars or coins are identified and recorded as client-owned property. That supports a claim that the metal remains outside a provider's estate, but the result depends on the custody agreement, records, segregation, control, liens, and law.
What does "unallocated" storage mean?
Unallocated storage means you hold a claim against a pool of metal owned by the depository or dealer, making you a general creditor. It is cheaper and common in wholesale markets but is generally not appropriate for a retail retirement position.
What does "segregated" storage mean?
Segregated storage is allocated storage in which your specific bars or coins are kept physically separate from other clients' holdings, often in a dedicated compartment. It costs more, and it removes any question about which bars are yours if you ever want them delivered.
What storage structure does an IRA require?
IRA bullion must remain in the physical possession of a qualified trustee. The account's custody, allocation, and physical-segregation terms vary by custodian and depository, so confirm the actual structure and records before funding.
What questions should I ask any depository?
Ask whether your metal is allocated and in whose name it is recorded, whether it is segregated or commingled, what insurance covers the vault and to what limit, how often independent audits occur, and what the procedure is to inspect or withdraw your metal.
- Is my metal allocated, and in whose name is it recorded?
- Is it segregated from other clients' holdings, or commingled?
- What insurance covers the vault, and to what limit?
- Are audits performed by an independent third party, and how often?
- What is the procedure to inspect or withdraw the metal?
The deeper reference on ownership records, controls, insurance, and legal documents is our Beyond Retail custody guide. Our overview of vaulting is on the Storage page, and eligibility rules are covered in which metals are IRA-eligible.