What does segregated storage mean?
In segregated storage the depository sets your metal apart, your specific bars and coins, in a space or container designated to your account. Nothing you own is mixed with another client's holdings.
The practical consequence: what comes back to you, or gets sold on your instruction, is the identical metal you deposited, serial numbers intact. The depository's records track pieces, not just ounces.
Why choose segregated over commingled?
Certainty and continuity. Some buyers want the specific bars they bought, particularly serialized bars, to remain specifically theirs. Segregated storage delivers that; commingled storage delivers the same quantity and product, but not necessarily the same pieces.
The trade-off is cost. Segregated storage requires more space and handling, so depositories charge more for it. For standard bullion coins, many buyers decide the premium isn't necessary; for larger bars, many decide it is.
How does segregated storage show up in practice?
Your account statements and storage agreement should state the storage type explicitly. If the paperwork doesn't say 'segregated,' assume it isn't, and if a salesperson promised it verbally, get it confirmed in writing before funding.