The storage fee is the proof that the gold is allocated. AgAu tokens allow for direct ownership of only allocated precious metals. This is an absolute priority for AgAu, as our mission is to offer the most “primitive” base layer to own pure quality (LBMA) physical precious metals directly.
There cannot be direct ownership of allocated precious metals without storage costs. In the case of some of our competitors claiming “allocated precious metals” the ownership structure is not direct but through a company or trust. Thus, the precious metals are leased, swapped or collateralized in order to produce income covering the cost of storage. Therefore, representing a position with a counterpart where the client is a creditor of the gold not the owner.