Common use of Unallocated Clause in Contracts

Unallocated. This is an account where specific bars are not set aside and the customer has a general entitlement to the metal. This is the most convenient, cheapest and most commonly used method of holding metal. The holder is an unsecured creditor. Transactions in unallocated metal that take place when the metal is stored in a Fiscal Warehouse are treated as supplies of goods for VAT purposes. Only silver, platinum, palladium and rhodium are eligible to be stored in this way.