Depository
Definition
A depository is a secure, insured third-party vault that stores precious metals on behalf of owners. For metal held inside a precious-metals IRA, an approved depository is required by IRS rules.
A depository is where your bullion physically sits when it is not in your own possession, with the storage operation run by a specialized company rather than the dealer or the owner.
Why it matters
Metal held in a self-directed IRA cannot legally be kept at home or in a personal safe. The IRS requires that IRA metal be stored at an approved depository under the control of the account custodian. A depository also carries insurance and security that a private safe usually does not.
In practice
Depositories offer two main arrangements. Segregated storage keeps your specific coins and bars separate and identifiable. Commingled or allocated storage pools holdings of the same product, so you own a like quantity rather than specific items. Segregated storage typically costs more. Fees are usually charged annually, often as a flat rate or a percentage of value.
Common confusion
A depository is not the same as a bank safe deposit box. Bank boxes are generally not insured for their contents and are not approved for IRA metal. A depository is a purpose-built facility with its own insurance and auditing.