Storage & Delivery
Allocated Bullion Storage Accounts
Allocated bullion custodial storage accounts are available to ABX Members in Approved Vaults throughout major capital cities in Australia. These are accounts held by Members with Clearing Rights who maintain balances of uniquely identifiable metal bars allocated to a specific Client.
The Client has full title to this metal with the Member holding it on the Client’s behalf as custodian. Metal in an allocated account does not form part of a Members’ assets.
Insurance for allocated metal can be arranged by the Member or by the Client, however typical precious metal storage accounts have 100% replacement insurance attached as a default requirement.
Client holdings are identified in a holding list of bars and coins displaying the bar or coin gross weight and the assay or fineness of each bar. In the case of gold, its fine weight is also recorded on the holding list.
Members with Clearing Rights hold direct accounts with Approved Vaults and are permitted to offer custodial services to their Associate Members and Clients.
As all bullion is sourced by ABX Good Delivery List persons, the Quality Assurance Framework ensures the fineness and quality of all bullion traded and stored by the Exchange.
Bullion holdings are dual audited by Inspectorate and the registered Australian auditor, Grant Thornton.
Unallocated Bullion Storage Accounts
Unallocated bullion custodial storage accounts are also available to ABX Members in Approved Vaults throughout major capital cities in Australia. Due to the simplicity and cost effectiveness of trading, settling and holding bullion in unallocated accounts; the majority of the wholesale market operates utilising this mechanism.
The units of these accounts are one fine troy ounce of gold and one troy ounce of silver and platinum based upon a 995 fine gold bar, a 999 fine silver bar or a 999.5 platinum bar.
The simplicity of this arrangement is reflected in the fact that transactions may be settled by credits or debits to the account while the balance represents the indebtedness between the two parties. Credit balances on the account do not entitle the creditor to specific bars of gold, silver or platinum but are backed by the general stock of the Member with whom the account is held.
Clients are unsecured creditors of the Member when bullion is held in an unallocated account.
Unallocated Storage Accounts are backed by physical bullion with the following specifications:
Should a Member wish to take delivery of unallocated metal, this is achieved by allocating specific bars, with the metal content then debited from the unallocated account. The account must first have a balance greater than the available Good Delivery bars backing the unallocated account. Where the account value is less than the value of an entire Good Delivery bar, then solely cash settlement is available.
