Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Vault Receipt

What it is:

A vault receipt is a document that proves ownership of gold, silver or other precious metals stored elsewhere.

How it works (Example):

Let's say John Doe purchases gold through a futures contract. The contract expires and John takes delivery of the gold. However, a truck doesn't just come to John's house with a load of gold. The gold is in a secure storage facility, and John receives a vault receipt indicating that he is now the owner of that gold.

Why it Matters:

Vault receipts are crucial documents because they prove ownership and prevent buyers and sellers from having to physically move heavy objects every time they make trades.