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Difference between Unallocated and Allocated Gold

GoldCore is one of a few selected distributors of the Perth Mint Certificate Program around the globe.

We recommend the Perth Mint Certificate Program to anyone looking to hold physical gold certificates as part of their portfolio as the PCMP is the only government-backed precious metals certificate program in the world. 

The Perth Mint is one of the most revered mints in the world. It is accredited by the five major bullion banks and fabricates more than 500 tonnes of precious metals, per annum. 

With GoldCore, when you choose to buy physical gold through the Perth Mint Certificate Program there are two options you can choose from:

  • Allocated Gold Perth Mint Certificates
  • Unallocated Gold Perth Mint Certificates

Both bring the same benefits to your portfolio; a unique physical certificate that provides you with the assurance that you have legal title to physical gold that is stored by the government owned Perth Mint. 

However, there are a few differences between the two, we highlight them below. 

What is Allocated Gold?

Allocated gold is one of the ways you can choose to own gold through the world’s only government-backed gold certificate program. 

An allocated gold certificate means that you own gold that is in the form of cast bullion bars. You have legal title over the bars that are stored by and segregated in The Perth Mint. 

An allocated Gold Certificate from The Perth Mint conveys legal ownership and title of a specific cast gold bar that is stored within the high security storage of The Perth Mint, to the registered owner of the asset. The certificate is physically signed by an officer of the mint 

When you buy an allocated gold certificate The Perth Mint acts as bailee, keeping your individual bars segregated in their high security storage vaults. At the time of purchase, you pay the quoted precious metal value, the fabrication cost, and the initial storage price. There are ongoing storage expenses. Insurance costs are covered by The Perth Mint, at their expense. 

When you choose to store your gold with the Perth Mint you are in good company. The Mint stores in excess of AUD 6 billion of precious metals, on behalf of 70,000 inventors around the world from savers, to high-net-worths, to stockbrokers, to central banks. 

What is Unallocated Gold

Choosing to buy an unallocated gold Perth Mint Certificate makes for a very cost effective way to hold physical gold as part of your portfolio. 

You get all of the benefits of holding gold but without the hassle of storage  and fabrication fees.

You will own an undivided interest in The Perth Mint’s inventory. This is made up of both working inventory which is used for fabrication, refining and minting of investment products, as well as The Perth Mint’s display inventory. 

When you buy a unique unallocated gold certificate you will have legal title over a specific amount of gold, rather than a specific bar of gold. This is incredibly cost effective as it means that you do not incur storage or fabrication costs. However you have the assurance that the gold is 100% backed by the government of Western Australia which has a S&P AA+ rating. 

Difference between Allocated gold and unallocated gold

If you have decided to invest in gold then you may now be asking what the difference is between allocated gold and unallocated gold. 

The Perth Mint Certificate Program allows investors to hold physical gold as part of a balanced portfolio. Through GoldCore you can do this in one of two ways: allocated gold certificates and unallocated gold certificates. 

The key difference between allocated and unallocated gold is that with allocated gold you own specific gold cast bars, whereas with unallocated you own an undivided interest in The Perth Mint’s inventory (both working and display) and the metal is stored in the unsegregated storage or on display in the Perth Mint. You have legal title to a set amount of gold rather than a fabricated cast bullion bar. 

Your unique unallocated gold certificate is 100% backed by the gold held by the Perth Mint as part of their working inventory. This includes the gold used for refining and minting, as well as any investment-grade gold that is on display, to the public. 

This key difference makes for a significant price difference as well as two additional charges are placed on the allocated gold certificates that are not applied to the unallocated gold certificates:

Fabrication fees: When you buy an allocated gold certificate you have legal title to a specific cast gold bullion bar. This benefit incurs fabrication fees. 

Storage fees: When you buy an allocated gold certificate then you have legal title over bars that are stored and segregated within the high security storage facility at The Perth Mint. This incurs storage fees which are charged regularly throughout the time you hold your allocated gold certificate. To store gold in allocated form the cost is 1.00% per annum

As unallocated gold certificates do not give you legal title to specific bars, but rather a specific amount of gold, then there is no fabrication or storage charges. 

How to buy allocated and unallocated gold

You can start your journey of becoming the proud owner of a unique Perth Mint Certificate today. All you need to do is create an account, upload your identification documents, and once your account has been verified, you can start to trade. 

The Perth Mint issues a Precious Metal Certificate in your name, specifying the precise quantity of ounces of gold that you own and that is kept on your behalf in the Mint. 

Each unique certificate is proof of legal ownership for every trade that you make. In the age of digital assets, such tangibility becomes very powerful, offering you greater protection against cyber risks or technological failure.

If you have bought an allocated gold certificate then your certificate will also show your unique bar number. 

You can convert your unique unallocated gold certificate into an allocated gold certificate at any time. You will incur both fabrication and storage fees, to do so.