Allocated gold certificates are gold certificates which correspond to actual physical gold and are a title deed proving ownership of the corresponding gold.
Allocated gold certificates facilitate trading in gold because ownership changes hands without the need for a physical transfer of the gold in question. At the same time, owners retain the right to claim their physical gold if they so choose (though regulations vary between issuers).
Holding allocated gold certificates makes a person the legal owner of actual gold bullion stored at a bank, bonded warehouse or independent precious metals storage. Because of this, holders of these certificates are usually required to pay storage charges.
See also: Unallocated gold certificate