Allocated storage of precious metals is the best way to store gold, silver and platinum, because it implies that you are the direct owner of the metal, not GoldMoney or any other third-party. When a precious metal is allocated, there is a defined and recorded owner of the metal, namely you. The manager of the metal (i.e., GoldMoney) or the vault do not have any direct claim on the metal.

A good way to compare allocated versus unallocated metal is to look at it in accounting terms. Allocated metal does not show up on the balance sheet of GoldMoney or the vault operator. It is an off balance sheet item, which is the property of its customers.

Unallocated metal shows up in a company's balance sheet as an asset, and the claims to the metal from its customers as the corresponding liability. This is how most bank bullion accounts work, as well as the various certificate programs worldwide sponsored by governments or private entities. If one of those entities were to go bust, any of its creditors would have first claim to those assets, leaving the entity's customers with no access to the metal (liabilities) promised to them.

When your metal is held in allocated storage, you have the assurance that your gold, silver and platinum is protected should GoldMoney or the vault it works with ever face bankruptcy or other financial difficulties, because their creditors would have no claim to your property since it is not a financial asset of GoldMoney or the vault.