To understand the value of segregated storage, first you have to understand allocated, as segregated is just its big brother.
Let’s say you bought 10 gold Eagles from a dealer and want to store them in a private vault. Your dealer mails the package containing your 10 coins directly to the vault you designate.
When the storage operator receives the package, they will open it and inspect the contents (done right, all handling from the door to the final shelf are under complete video surveillance, like they are
That’s where things start to differ.
With an allocated storage program, those assets are then brought to the area of the vault exclusively used for GoldSilver or your other allocated storage “master” account. The metals are piled together with all other assets from that master, and the “sub” ownership to you is recorded electronically with both the vault provider and the account master, i.e.
When it comes time to deliver or sell allocated assets, the vault provider is given verified instructions by the master and pulls that amount of material from the master’s shelves to fulfill the order.
- Source, Gold Silver