What is depository insurance?
Approved depositories carry all-risk insurance on the metal in their custody, underwritten through specialty markets, Lloyd's of London syndicates are the common example. Coverage protects against theft, physical loss, and damage while metal is in the vault.
It is not FDIC insurance. FDIC covers bank deposits, not physical commodities; anyone implying your stored metal is 'FDIC insured' is confusing two different systems.
Why does the detail of the coverage matter?
Because 'fully insured' is a marketing phrase until it's documented. What matters: the insurer's identity, the aggregate coverage limit relative to total holdings, whether coverage is all-risk or named-peril, and how independent audits verify that holdings match records.
Major depositories publish or provide this information readily. The combination, recognized insurer, adequate limits, regular third-party audits, is the actual protection; the word 'insured' alone is not.
How does depository insurance show up in practice?
Before funding storage, ask three questions in writing: who underwrites the coverage, what is the coverage limit, and who audits the holdings and how often. A serious depository answers all three without hesitation.