Physical gold is not a claim on a bank, company or government, which is why some institutions hold it alongside financial assets. It produces no income, however, and its price can be volatile.
How allocated gold is classified on a balance sheet depends on the accounting standards that apply and the purpose for which it is held. Unlike gold ETFs or unallocated gold accounts, allocated gold is recorded against specific bars — with EONA, against specific bar serial numbers, separately from EONA’s own assets.
How Gold Can Affect Financial Statements
Gold is a tangible asset that involves no debt or derivatives. How it is presented — current or non-current, and under which heading — should be agreed with your auditors.
Gold is widely traded, unlike real estate or infrastructure. With EONA, metal is stored with Loomis in Dubai and can be sold back to EONA at the price shown on the platform, with proceeds paid to your verified bank account. Zurich and Singapore are planned locations (coming soon).
Accounting and Valuation Guidelines
Depending on the framework and classification, gold may be measured at fair value or at cost. Fair value means reported figures will move with the gold price, in both directions.
Auditors typically require third-party evidence of physical holdings and a regular valuation. EONA provides records of your holdings, bar allocations and transactions to support this.
Regulatory Recognition and Treatment
Central banks hold gold as part of their official reserves, and bank capital rules treat some physically held gold favourably. These rules apply to banks and similar regulated entities; other institutions should check how any rules apply to them.
Some private institutions also hold gold, especially where currency risk is high. Gold’s global recognition makes it relevant for multinational balance sheets.
Use Case: Institutional Holdings via EONA
Institutions using EONA buy allocated gold at the international spot price plus a premium, with a commission (see our Fees & Spread page). Holdings are recorded against specific bars and separately from EONA’s own assets, which makes them straightforward to book, report and audit.
The vault operator, Loomis, maintains insurance under its own policy. EONA sells on an execution-only basis and does not give accounting, tax or investment advice.