Of the 933 tons cleared daily, it was estimated that about 218 tons represented London trades, while of the 7,775 tons of silver cleared daily, about 3,732 tons represented London trades. Gold accounts at a bullion house may be allocated or unallocated . The unallocated account is most typical. One holds on deposit a specific number of ounces of gold, but these ounces of gold are not identified with any individual physical gold bars. These unallocated accounts may or may not bear interest, and may or may not have insurance and storage charges.
Most gold trading takes place by paper transfers between unallocated accounts.
Bookkeeping entries avoid the transactions costs and security risks of moving the actual metal. Traders clear their trades with one another through book entry transfers in or out of accounts at one or more clearing members, while clearing members clear their net trades with one another through their gold accounts at the Bank of England, as well as by physical gold transfers. Allocated accounts, by contrast, contain individual gold bars with given serial numbers. In effect, allocated accounts are safe-keeping or custody accounts. Such accounts do not bear interest, are normally subject to charges, and may not be used as clearing accounts.