What Is Segregated Vault Storage for Precious Metals?

WHAT IT MEANS

Segregated storage means your precious metals are physically separated from every other client's metal in the vault. Your coins or bars are placed in a designated bag, bin, or compartment that belongs exclusively to you. No one else's metal is stored with yours, and your vault statement reflects the exact items in your possession.

This is the highest standard of precious metals custody. It contrasts with commingled storage, where multiple clients' allocated metal is stored together in the same area, and with unallocated storage, where no specific metal is assigned to your name at all.

WHY IT MATTERS FOR INVESTORS

Segregated storage provides three layers of protection that other custody models do not.

First, it eliminates commingling risk. When metals are stored together — even if each client's allocation is tracked on paper — disputes can arise during audits, insurance claims, or insolvency proceedings. With segregated storage, there is no ambiguity. Your metal is in your bin. It is photographed, inventoried, and identifiable.

Second, it provides a clean audit trail for estate planning and insurance. If you need to prove ownership for an estate settlement, a tax filing, or an insurance claim, segregated storage gives you specific item-level documentation. An inventory list showing your exact bars and coins, stored in a designated location, is significantly stronger evidence than a line on a ledger showing an allocation from a shared pool.

Third, it supports direct inspection. With segregated storage, you can request to view your specific metal. You know exactly what is there because it is physically separated from everything else in the vault.

HOW IT CONNECTS TO PRECIOUS METALS

Vault storage for precious metals operates along a custody spectrum. At the highest standard sits segregated allocated storage — your metal, your bin, your name, physically separate. Below that is commingled allocated — your metal is tracked and allocated to you, but stored alongside other clients' allocated holdings. Below that is unallocated — you hold a claim against a pool, not ownership of specific metal.

The cost differences are modest relative to the protection provided. Segregated storage typically costs $100-$1,800 per year depending on the value stored. Commingled allocated storage costs somewhat less. Unallocated storage is often free because the provider can lend or leverage the metal.

For investors using precious metals as a wealth preservation and estate planning tool — which is the primary use case for vault storage — segregated storage is the appropriate standard. The annual cost is a small fraction of the stored value and buys you the cleanest ownership structure available.

The vault storage model at Alex Lexington uses five tiers based on portfolio value, ranging from $100 to $1,800 per year. Every tier provides the same level of custody: segregated, allocated, insured, and held in the client's name.

THE BOTTOM LINE

Segregated vault storage is the gold standard of precious metals custody — your metal, physically separated from every other client's holdings, inventoried, insured, and held exclusively in your name. For investors who hold physical metals as a cornerstone of their wealth preservation strategy, it provides the ownership certainty and audit trail that the investment demands.

Alex Lexington provides exclusively segregated storage. We do not offer commingled or unallocated options because we believe they compromise the fundamental reason our clients hold physical precious metals.

DISCLOSURE

Alex Lexington provides this content for educational purposes only. This is not investment advice. Precious metals prices fluctuate and past performance does not guarantee future results. Consult a qualified financial advisor before making investment decisions. Alex Lexington is a licensed precious metals dealer, not a registered investment advisor.