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Updated January 16, 2021

What is a Vault Receipt?

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

How Does a Vault Receipt Work?

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 Does a Vault Receipt Matter?

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.

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Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

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