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Allocated Gold

Allocated Gold There are many ways you can pin your money on gold, however not all of them allow you
the privilege of physically owning the gold in which you have invested. Exchange Traded
Funds (ETFs), for example, effectively allow investors to bet on the movement of the gold
price, without owning any actual metal.

'Allocated' gold, however, is the opposite of this. It is the straightforward purchase of physical
gold, such as coins or bars, in a transaction by which an individual becomes the owner of
the amount of gold for which they have paid. Allocated bullion is the investor’s own property,
and at BullionByPost we believe this is the best way to own gold - physical and fully allocated.


Gold allocation

Allocated gold offers you a degree of freedom and peace of mind, happy in the knowledge that your money is secure in the physical ownership of the specific amount of gold that you have purchased. Although it can be initially more expensive than other forms of gold investment, the slight premiums paid on physical bullion are a small price to pay for additional peace of mind.

Unallocated gold - essentially a credit to a bank - is supported by the bank's gold reserves, but does not entitle the investor to any physical gold. In the possible event of a liquidity crisis, these same reserves will be sold to pay off the bank's debts and investors are unlikely to recuperate their initial outlay. As allocated gold is your own property, not that of a bank or other party, it is an investment that is safe from insolvency.

In such uncertain economic times, the added security that allocated gold offers is of great value to investors. This differentiates it from electronic or unallocated gold which ultimately leaves the investors with very little protection when things go wrong. As such it is recommended that a balanced portfolio has a 5 - 10% gold allocation.


As the UK's No. 1 Online Bullion Dealer*, we sincerely believe in the benefit of owning allocated physical bullion such as gold bars and gold coins. Purchasing allocated gold from a leading bullion dealer such as BullionByPost offers an investor an excellent service for buying high quality bullion gold and silver to be delivered to your door. When investing in gold as a way of protecting your wealth, it makes sense to do so in a way that makes you the rightful owner of the amount of gold you have paid for, rather than being a creditor, still dependent on the solvency of a bank or ETF trader.

View our range of gold bars.


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