Segregated (Commingled) vs Allocated Storage, what is the best choice for your gold IRA?

Home » Blog » Segregated (Commingled) vs Allocated Storage, what is the best choice for your gold IRA?

Disclosure: Our content does not constitute financial advice. Speak to your financial advisor. We may earn money from companies reviewed.  Learn more

goldstoragevaultBefore exploring more of the benefits and costs of segregated and allocated storage, let’s first explain quickly why precious metals such as gold and silver have become so valuable in the last decade. The media coverage and demand for precious metals from institutional and retail investors have arisen from a combination of market forces and economic circumstances. The decision of central bankers globally to fuel the economy through money printing initiatives to combat anemic financial growth and high levels of unemployment have fostered uncertainty over risks of inflation and the depreciation of fiat currencies around the world. In addition, survivalists have augmented these concerns investing in precious metals fearing the rise of apocalyptic conditions. Subsequently, these forces have contributed to more speculation in the commodity exchanges that have underpinned a bull trend in gold and silver prices.

What are the benefits of segregated storage?

Segregated (also called Commingled) storage refers to the investment choice, whereby a storage firm maintains a client’s precious metals assets separately from other gold or silver assets held by other other investors. Traditionally, the assets are held in an individual storage box or vault depending on the size of the investment assigned to each client. In other words, the precious metals you purchase are the exact physical allotments of gold or silver that are protected in your storage space. The legal title to the holdings is non-transferrable, thereby the holding company is legally permitted to alter or allocate them unless otherwise stipulated in the storage contract. 

What are the upsides of allocated storage?

Should you have more flexibility in your physical precious metals investment, you may consider an allocated storage arrangement. In this context, your precious metals may be combined with the gold and silver holdings of other clientele of the storage firm. Essentially, the precious metals are simply stored under the name of the client but not physically partitioned from other client holdings. This option works well with those investors who do not seek immediate physical delivery of their precious metals assets. 

Why choose a storage vault?

Although there are other feasible vehicles for storing precious metals, a vault still remains the most efficient and secure option. Those professionals that manage such facilities have years of expertise and resources to protect your assets while you sleep easily at night. Select only those third-party firms that have comprehensive insurance and armored security vehicles and personnel to minimize your risk. Note, moreover, that storing physical gold or silver in the safety deposit banks of commercial banks are not protected by FDIC insurance mandates as well as from losses. The most reputable precious metals vault companies are insured in excess of $50 million USD, underscoring its value and suitability for only the most sophisticated investors. Finally, compared to precious metals investment paper vehicles like exchange traded funds, private vault firms are more cost efficient than holding these types of derivative assets.

How to invest in gold through your 401k or IRA Account? 

Selecting physical gold or silver as an asset allocation in your retirement planning poses some potential concerns when seeking a broker who can seamlessly move your assets to a storage firm for either segregated or allocated storage. Note that current 401K accounts make it difficult to invest in gold or silver unless the investment options include mining company equities. 

Should you no longer work for the firm maintaining your retirement account, consider transferring you account into physical precious metals by liquidating the existing holdings and reallocating your assets into a self-directed or gold backed IRA. In contrast to a traditional IRA, a gold backed one permits investors to purchase physical bullion bars, while a self-directed IRA enables one to select the investment vehicles you desire. Trust an established broker with this type of transaction to preclude any costly tax liabilities. 

As economic turmoil continues to dominate the financial landscape, consider allocating more of your assets into physical gold and silver holdings to capitalize on the trends the current market conditions present. In exploiting this opportunity, select a trusted vault company that posses both the expertise and resources in terms of security and insurance to guarantee your investment. Whether you elect for segregated or and allocated storage contract, consult with close associates or a trusted financial advisor to decide which option suits your needs and investment goals. Ultimately, investing in physical precious metals may well be the only security in a world influx with uncertainty and indecision.

Request your Gold IRA Investment Kit from Regal Assets to Learn More

Regal Assets has ranked #1 this year in our Precious Metals IRA rankings. We used criteria from the BBB, BCA, TrustLink and other reputable sources to determine the rating of each company. Fill out the quick form below to get your free investment kit from Regal Assets. This kit will show you everything you need to know about investing in precious metals through an IRA and explain your storage options.

Chris Thomas
Chris Thomas

Chris Thomas is a Senior Editor at Gold IRA Guide. He is an experienced financial and investment author with a strong passion for commodity investing and global economics. Before joining the Gold IRA Guide team, Chris has been writing for various authority financial portals and magazines for over two decades.

Articles: 39

Leave a Reply

Your email address will not be published. Required fields are marked *