An amount is not a bar list
A silver account can show a quantity of metal without identifying particular bars. LBMA distinguishes allocated from unallocated accounts by the way metal is held and settled. The terms describe the account arrangement rather than a different kind of silver. An account balance alone therefore does not establish which bars, if any, belong to its holder. The ownership arrangement is part of what that balance means.
Allocated holdings
In an allocated account, the customer has title to identified bars and the operator holds those bars as custodian. LBMA describes a weight list recording identifiers, weights and fineness. This links the customer's holding to specific physical metal. Properly allocated bars are therefore different from a general claim on the operator. Physical custody still involves practical questions such as recordkeeping, access and the arrangements for moving metal.
Unallocated balances
An unallocated account gives its holder a contractual claim against the account provider for a quantity of metal, without ownership of specified bars. LBMA explains that this creates credit exposure to the institution maintaining the account. The structure supports convenient transfers and settlement because each trade does not require individual bars to be reassigned. Its usefulness for settlement does not make that contractual claim equivalent to title over an identified bar.
The agreement completes the picture
LBMA's description establishes the broad distinction; an individual account's documentation supplies its precise terms. Storage or maintenance charges vary between operators. Conversion between unallocated and allocated balances can also depend on circumstances and the provider's terms. For allocated metal, LBMA says the owner normally arranges insurance unless an agreement provides otherwise. Allocation thus describes an ownership structure, while custody, insurance and access remain separate parts of understanding the holding.
Sources & further reading
- LBMA — Clearing: Bullion Accounts ↗
- LBMA — A Guide to the Loco London Precious Metals Market, Chapter 8: Precious Metal Accounts ↗
Sources checked 14 November 2026. Reference organisations do not endorse this website. Price examples are hypothetical and educational.