What does allocated ownership mean?
With allocated storage, specific metal is identified and held for you rather than merely owed from a pool. The intended legal structure is custody of client property rather than a debtor-creditor claim for metal.
That legal distinction supports treating your bars as client property rather than an asset of the depository. Whether that position controls in an insolvency still depends on the custody agreement, records, identification, segregation, liens, actual control, and governing law.
Why does allocated matter in a failure scenario?
If an institution holding unallocated metal fails, clients may be left with a claim for metal owed from a pool. Allocated ownership supports the position that identified metal remains client property and should be returned rather than liquidated, but that result is not automatic and depends on the documents, records, control, liens, and applicable law.
This is why serious storage arrangements, IRA or direct, are built on allocated ownership. The question 'is my storage allocated?' is one of the most important you can ask, and the answer should be in writing.
How does allocated show up in practice?
Your storage agreement should state that holdings are allocated and held as your property rather than as a general obligation of the depository. Confirm how the agreement addresses identification, rights of use, liens, control, and insolvency. Allocated and segregated often travel together, but they're different things: allocated is about ownership, segregated is about physical separation.