Allocated gold means the gold is your property and you are the legal owner of the gold. Allocated gold accounts use your funds to buy and store physical gold in secure, insured vaults. The gold stays in the vault and cannot be used for any other purpose.

When you buy gold with Quantum Metal, you are the legal owner of the gold. You pay Quantum Metal to keep the gold for you. No matter what happens, your gold is protected even if Quantum Metal closes down for any reason.

With unallocated gold, which is also knowns as paper gold has higher risk in general. Unallocated gold accounts do not have to physically store your gold. Your gold may be lent out during the time that the company or bank holds the gold on your behalf. If the gold provider goes bankrupt, you get the promises that your gold will be returned – which will leave you waiting in line with other creditors.