Table of Contents
- Comprehensive Storage Solutions
- Allocated Bullion Storage
- Bullion Deposit & Delivery
- Inspection and Audit
1. Comprehensive Storage Solutions
Allocated Bullion Exchange (ABX) offers comprehensive storage solutions with inventory management in multiple locations worldwide. ABX’s storage and logistics solution is offered through third-party partnerships with world leading secure logistics solutions providers: Malca-Amit, Armaguard and Loomis International.
Our vaulting providers are leading names in the logistical solutions industry who offer secure, efficient and reliable services of the highest quality. Their modern infrastructure, cutting-edge security systems and comprehensive insurance facilities ensure maximum security and minimum risk for the global storage of bullion.
2. Allocated Bullion Storage
Upon buying physical gold, silver or platinum through the ABX, a Trading Participant’s bullion will remain in the Secure Storage Area of a given ABX Vault and approved location; until a request is made for it to be transferred, withdrawn or relocated to another location.
All bullion traded on the MetalDesk trading platform is stored on a legally Allocated and operationally Unsegregated basis, with individual holdings allocated through a Holding Identification Number (HIN) system. Each HIN, which can be used to identify a sub-account of a Member or a Private Client who has bought physical gold, silver or platinum through MetalDesk, holds direct full legal title to all bullion purchased.
For specific bullion products (1kg gold bar, 10oz gold bar and 100oz silver bar) legally Allocated and Operationally Segregated storage is available through the use of an electronic Vault Warrant (eVW), which allocates a unique bar serial number to the HIN against which the eVW is created.
Storage fees are calculated daily and invoiced monthly in arrears at agreed rates. Storage is only paid on the bullion that is held by an investor at 5:00pm local time in each trading hub. Bullion that has not yet been delivered to the vault will not accrue storage fees.
The MetalDesk trading platform takes care of all invoicing and storage management aspects. Full Members and other members of the exchange are able to manage their end clients’ storage fees and generate comprehensive reporting on the holdings under management through the MetalDesk platform.
3. Bullion Deposit & Delivery
ABX maintains a list of approved Liquidity Providers that are eligible to deposit bullion into the ABX vault network. ABX only accepts bullion that fulfils the requirements of the relevant fixed weight contract and meets one of the following conditions:
- Delivered directly by a Good Delivery Refiner as listed in the exchange’s source list with a refiner certificate
- Delivered directly by another ABX Vault together with a refiner or assayer certificate
- Delivered directly by an ABX Approved Assayer along with an assayer certificate
- Delivered directly to an Approved Location
Bullion is initially delivered to the Temporary Storage Area of an ABX Vault where it is inspected and systematically verified and once deemed to be in accordance with the delivery request and supporting documents, and free from damage and interference, the bullion is approved for transfer to the Secure Storage Area.
ABX is able to arrange for bullion to be withdrawn from the ABX Vault Network and delivered to an approved location of the owner’s choosing.
To maintain the integrity of the ABX exchange, only approved Members have permission to deliver bullion to the ABX Vault Network for trading in ABX’s exchange. All deposits and withdrawals are conducted in accordance with the ABX Quality Assurance Framework, and subject to ABX’s independent audit and verification program.
4. Inspection and Audit
ABX has engaged industry specialists, Inspectorate and BDO, to provide inspection and audit services on all bullion stored in the ABX Vault Network. The services include:
- Weight reconciliation of all bullion stored in each vault location
- Visual checks for bar number and brand purity
- Verification that the bar number records are accurate Weight checks on a random sample of metal bars
- Calibration status checked for scales at each vault location
- Visual inspection of coins Full reporting of the findings of the inspections
See also ABX Quality Assurance framework and ABX Brochure
