Unallocated Gold Pool Accounts

Depositing gold into an account stops being private property and becomes the bank's liability, and there is a critical difference in being treated as creditors if adverse situations arise in the future.

Gold pool accounts are synonymous with unallocated gold. Unallocated gold (referred to as "pool", or "metal" accounts) is the provider's liability, forming part of the working capital of the bank and it can be legally used by the bank for profit. The gold investor is therefore exposed to the insolvency of the bank - and would be sold for the benefit of all creditors, not just the gold holders.

Gold pool accounts are not subject to depositor protection. Also from the provider's point of view there need be no physical gold - pooled or otherwise.  Banks often lend unallocated gold to the highest payer of interest. This interest will not be credited in the unallocated gold account holders despite the extra credit risk that was undertaken on their gold holding.

Gold pool accounts are accessible to small investors and the spreads are at about 1%.

You can expect to be charged with fabrication fees, should you ever demand your gold entitlement in physical form.

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