What does a depository do?
A depository is a high-security vault facility that receives, verifies, stores, and accounts for physical metal. Approved depositories operate under insurance coverage, regular independent audits, and inventory controls designed for institutional holdings.
For an IRA, the depository is where the law requires your metal to live. The custodian records ownership; the depository holds the physical bars and coins under that record.
Why does the choice of depository matter?
Depositories differ in location, storage options, segregated versus commingled, insurance arrangements, and fees. Those choices follow you for the life of the account, so they're worth understanding before the first shipment arrives.
You are entitled to know exactly where your metal is stored, under what storage type, and under what insurance. Any arrangement that can't answer those three questions in writing isn't one to fund.
How does the depository show up in practice?
When you buy metal in an IRA, the dealer ships directly to the depository, never to you. The depository verifies the shipment against the invoice, logs it into your account's holdings, and issues confirmation through the custodian.